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SIE > Regulatory Entities, Agencies and Market Participants Quiz > Flashcards

Regulatory Entities, Agencies and Market Participants Quiz Flashcards

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SIE Exam flashcards
1
Q

If a CPA also provides investment advice to his clients for a fee the CPA is considered an?

A

Investment adviser

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2
Q

Who obtains the CUSIP for a municipal bond issue?

A

The underwriter

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3
Q

All of the following are considered self regulatory organizations for the regulation of securities offerings and trading?

A

FINRA, MSRB, CBOE

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4
Q

The function of the Department of the Treasury?

A

Oversee the US economic and financial systems

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5
Q

If a customer purchases securities and does not settle the account in 4 business days the brokerage firms first order of business is to?

A

Cancel the trade and sell off the purchased securities

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6
Q

The current margin requirement under Regulation T of the Act of 1934 is

A

50%

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7
Q

In the sale of a new issue of municipal securities MSRB disclosure requirements specify that a customer must be provided with a copy of the

A

Official statement

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8
Q

When an entity makes a market in a particular security it is deemed to be acting as

A

A principal

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9
Q

Which code under FINRA by laws would relate to trade practice violations and enforcement?

A

The code of procedure

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10
Q

Who enforces MSRB rules on NYSE member firms?

A

FINRA

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11
Q

If a member resigns from an SRO when will the registration take effect?

A

30 days after receipt of formal registration by the SRO

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12
Q

Under regulation T if a customers account is frozen for 90 days the customer

A

May make purchases if the full purchase is in the account before the order is transacted

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13
Q

A customer who failed to complete payment in 4 business days applied for an extension but was denied. What action should be taken?

A

Close out the transaction

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14
Q

Government securities regular settlement is

A

Next day

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15
Q

Which of the following best fits the definition of an investment advisor?

A

Publisher of reports on securities

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16
Q

A legal entity that offers securities to investors?

A

An issuer

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17
Q

Under regulation T the 90 day restriction applies to a customer who purchases and subsequently sells

A

Same stock in a cash account without having first fully paid for the purchase

18
Q

A customer has not paid for a stock transaction in 4 business days and has been refused an extension the member firm

A

Must cancel or liquidate the order by immediately selling the securities

19
Q

Regulation T of the federal reserve board involved all of the following security transactions

A

Corporate securities
ADRs
Rights & Warrants

20
Q

The MSRBs anti money laundering rules require that a municipal broker dealers procedures contain.?

A

An employee training program

A designated independent party to test the procedures

21
Q

When broker dealers effect trades for the account of other that are acting capacity?

A

Agency

22
Q

Your client has not paid for a stock purchase on the allotted time period. According to Regulation T this account will be frozen for

A

90 days

23
Q

A municipal broker / dealer renters a big. This is a

A

Nonbinding request for a likely bid

24
Q

An investor can be granted an extension of time by

A

FINRA and the transacting exchange

25
Q

A natural person must be considered an accredited investor if in each of the past 2 years his or her income exceeded

A

$200,000

26
Q

MSRB rules do not permit

A

Nominal quotes distributed as bids

Nominal quotes distributed as offers

27
Q

The federal act that established procedures for the protection of customer funds and securities in the event that a broker dealer becomes insolvent is called

A

The securities investor protection act of 1970

28
Q

Broker dealers effect transactions of securities for

A

For both their own account and the account of others

29
Q

If a customer purchasing securities on margin does not pay for the securities in the required time period the account is frozen and no credit may be extended to them for

A

90 days

30
Q

According to MSRB rules if a control relationship exists between an issuer and a municipal securities dealer the nature of that relationship must be disclosed under which of the following circumstances

A

When the transaction involves the sale of a new issue
When the transaction occurs on the secondary market
When the broker dealer is acting as agent
When the broker dealer is acting as principal

31
Q

Which of the following would meet the MSRBs definition of a customer?

A

A bank trust officer purchasing for a trust account
An investment advisor handling account for his clients
An issue buying a security in the secondary market

32
Q

When a brokerage firm is acting as a dealer it is acting in the capacity of an

A

Principal

33
Q

Special procedures must be followed by a municipal bond dealers when opening an account for which of the following?

A

Principal of another firm

34
Q

Under MSRB rules a broker dealers municipal activity must be supervised by

A

A municipal securities principal

35
Q

Which of the following describes a market maker?

A

A broker dealer that assumed the risk of holding an inventory of shares of stock in order to facilitate the trading of that security

36
Q

A customer who purchases securities in a cash or margin account must pay for the securities in

A

4 business days

37
Q

According to MSRB rules under which of the following conditions may a municipal dealer share in the loses of a customers account?

A

Under no circumstances

38
Q

Where do municipal trade

A

OTC

39
Q

FINRA s main functions include all of the following

A

Monitoring compliance with rules of ethical practice
Writing rules enforcing broker /dealer behavior
Governing broker /dealer and registered representative trading activity

40
Q

An investor an be granted an extension of time by

A

FINRA and the transacting exchange

41
Q

A members blanket fidelity bond provides insurance against

A

Lost stock certificates
Employee theft of stock certificates
A registered representative embezzling cash from a customers account

SIE (23 decks)

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