exam 7 Flashcards
forwarded shareholder communications
Proxies, annual reports, and other information sent to stockholders that are forwarded to member firms by issuers must be forwarded to the beneficial owner of the stock. They do not need to be sent by the issuer. This information may be sent to the beneficial owner’s (the customer’s) designated investment adviser
RR Trade Error
Principal that moves the shares does not necessarily have to be one supervising the OSJ.
Listing Requirements STringent
NYSE is less stringent then Nasdaq Capital, global and global select.
Un-audited statement
The un-audited statement is filed 6 months after the audited.
bearer bonds delivered to the firm are missing coupons
No inquiry of the SIC is required unless tehy suspect criminal activity.
reference security
The prohibition on purchases or bids during the restricted period applies not only to the subject security, but also to any reference security. A reference security is a security into which the subject security can be converted, exchanged, or exercised, or which, to a significant extent, determines the value of the subject security.
Circuit Breakers
Marketwide trading halts are based on the S&P 500 Index and are calculated daily (not monthly). A trading halt on one exchange applies to all exchanges that trade the same security. A Level 1 Market Decline (7%) and a Level 2 Market Decline (13%) will halt trading for 15 minutes. For a Level 3 Market Decline (20%), trading will be halted for the remainder of the day.
annuity funds
typically must be forwarded immediately
if funds are received priot to approval of the contract (7 day period) the firm can deposit and maintain these funds if it is permitted to maintain customer funds under SEC Rule 15c3-1 and SEC Rule 15c3-3 (the Net Capital Rules). The firm would be required to hold these funds in the special reserve bank account.
A broker-dealer is purchasing stock for an issuer under Rule 10b-18. May it purchase the stock in a principal transaction and then resell the security to the issuer
The broker-dealer may, but only if it is a riskless principal transaction
Mark to the market time frame
If a member firm sends another member firm a mark to the market demanding the deposit of additional cash, the member firm receiving the demand must comply promptly
Maintenance Call Liquidation amount
The amount of the call times 4
tombstones
Are they required
No they are an option
The third marke
The third market refers to the trading of listed stocks in the over-the-counter market. Such transactions by FINRA members must be reported within 10 seconds of the trade during normal market hours. A member firm that accounts for 1% or more of the volume of a listed security is required to publish quotes in that security through the CQS.
Series 62
Corporate Securities Representative
can sell closed end funds
If the closing of an offering is delayed the syndicate manager must
notify FINRA’s Operations Department immediately
