Regulations - Test Questions Flashcards
The ______ decides which securities are marginable
Fed Reserve Board
In-house margin rules are _____ stringent than FINRA rules
MORE - can only be more
In-house > FINRA > SEC
The Fed Reserve board ONLY has the power to set margin requirements for ______ securities
non-exempt
FINRA sets minimum margin requirements for both ____ and _____ securities
exempt and non-exempt
Any short swing profits from insider trading must be _____ to the corporation
repaid
“Established” customers for buying penny stocks have either deposited money with the BD for at least a ____ or have bought ____ or more penny stocks from that BD
at least a year, have bought at least 3 penny stocks prior
An RR can only share commissions or pay referrals to other RRs at the same _____
BD
In order to open a new account for a customer that wishes to buy IPOs, the customer must sign a ______
representation letter (“positive” affirmation and thereafter a “negative” affirmation every year)
If an insider is a member of an investment club that wants to buy an IPO, he/she may only own up to _____
10%
According to FINRA, “institutional clients” constitute banks, savings and loan, insurance companies, registered investment companies, registered investment advisers, employee benefit plans with at least 100 participants, gov’t entity or a person with at least $50m in assets for investment, BUT NOT a _____
real estate company
Advertising under the umbrella of “retail communication” is defined as ____
- TV
- Radio
- Newsprint
- Billboards
- Websites
- Internet bulletin boards
If an RR is sending electronic communications, they must be sent from a ______ location
supervised
Institutional communications lists should be ______ from retail communications lists
walled off
