exam 3

Question 1

Audited statement to be furnished to customers

Time Frame

Answer 1

It must be furnished to customers no more than 105 days after the date of the audit

Question 2

To locate information on common stock holdings of hedge funds you should

Answer 2

Search the EDGAR database and retrieve the fund’s 13F filings
13f is filed when discretion of 100million of equities exists for fund managers.

Question 3

equity transaction reporting

Answer 3

Transactions in equity securities must be reported to FINRA within 10 seconds anytime the reporting systems are open. The hours of operation for the TRF and ORF are 8:00 a.m. to 8:00 p.m. However, transactions executed between 8:00 p.m. and midnight are reported by 8:15 a.m. on the following business day (T + 1).

Question 4

A firm’s trading desk is in the process of executing a block order
he firm may trade a related security for its own account:

Answer 4

The firm is not permitted to execute an order for its own account in a related financial instrument (the stock or any derivative of that security) when it has nonpublic market information concerning an imminent block transaction. The information is considered to be made public after the entire block transaction has been executed and reported.

Question 5

dvp account statements

Answer 5

they don’t have them

Question 6

5% policy applies to

Answer 6

The 5% Policy applies to a riskless or simultaneous transaction.

Question 7

The 5% Policy does not apply to

Answer 7

The 5% Policy does not apply to the sale of securities that are accompanied by a prospectus. This would include new issues (equity IPOs) and mutual funds. Private placement transactions are not covered under the 5% Policy.

Question 8

Temporary subordinate loan maturity

Answer 8

45 days

Question 9

A supervisory analyst is series

Answer 9

16 they approve research reports

Question 10

A List or Fixed Offering Price Transaction in a TRACE-eligible security that is executed during the hours the system is open must be reported:

Answer 10

A List or Fixed Offering Price Transaction, or Takedown Transaction, is a primary market (new issue) by a sole underwriter or syndicate member, or selling group member as a discount from the offering price. These transactions must be reported no later than T + 1 during TRACE system hours.

Question 11

A bank offering securities to clients registration

Answer 11

The bank would be required to register as a broker-dealer.

Question 12

broker-dealer operating in it’s first year will fille pbulic media communications when

Answer 12

For the first year or if they deviated any time determined by finra.

Question 13

If the receiving firm in an ACAT is notified of a discrepancy by the sending firm how long does the receiving firm have to resolve it.

Answer 13

5 business days.

Question 14

SIC Center exemptions

Answer 14

From the issuer or issuer’s agent
From another reporting institution or a Federal Reserve Bank
From a customer of the broker-dealer for stock registered in the name of the customer or stock previously sold to the customer and verified by internal firm records
Through a transaction under $10,000 that is exempt

Question 15

Firm element training applies to?

Answer 15

Only applies to RR’s that have contact with the public.

Question 16

A tombstone may NOT contain:

Answer 16

An offer to sell

It may have the price

Question 17

A new member firm is required to execute its first compliance certification

Answer 17

A new member firm is required to execute its annual certification of compliance and supervisory processes required under FINRA Rule 3130 no later than its first anniversary of becoming a member firm and annually thereafter.

Question 18

In when, as, and if issued and when, as, and if distributed transactions, settlement is

Answer 18

Once the securities are issued or distributed, the National Uniform Practice Committee will determine if the final form of issuance or distribution is essentially the same as originally announced and will determine when transactions will settle. If the final form of issuance or distribution is substantially different, all contracts will be cancelled.