Finals

Question 1

market timing with MF

Answer 1

Market Timing is the practice of frequently buying and selling a fund’s shares to exploit inefficiencies in how the mutual fund company computes NAV per share. For example, if the fund held overseas stocks, that might slow up the computation of NAV for the fund company

Question 2

3 types of investment companies?

Answer 2

face amount certificate companies; unit investment trusts; and management companies

Question 3

Soft dollar remuneration

Answer 3

when an institution directs its portfolio trades to a broker in return for research (or other services that benefit the institution’s customers) that is provided by that broker to the institution. The compensation to the broker by the institution for the research is included in the commission charge - there is no separate charge for the research - hence the term “soft dollars.” This is a permitted practice under FINRA and SEC rules.

Question 4

spoofing” is a market manipulation where

Answer 4

limit orders are entered to improve the NBBO, enticing other participants to join in placing orders at the new NBBO, at which point the original firm cancels its orders and executes against the later-placed orders from other market participants

Question 5

The Manning Rule covers:

Answer 5

limit orders

Question 6

ctr stand for

Answer 6

Currency Transaction Report

Question 7

SARs stands for

Answer 7

suspicious activities reports

Question 8

erroneously

Answer 8

n a mistaken way; incorrectly

Question 9

TRACE

Answer 9

Trade Reporting And Compliance Engine

and is FINRA’s system for collecting trade reports on corporate, government, and agency bond issues traded OTC