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Series 24 made by rich > Test questions > Flashcards

Test questions Flashcards

1
Q

Rule 15c2-1 Commingling

A

Commingled with other customers if consent in writing never commingled with firm securities

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2
Q

Stock Splits

A

Ex date is 1 bd following pay date

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3
Q

Cash Div

A

exdate is 1 bd prior to record date

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4
Q

Rule 506b

A

Limits non accredited investors to 35. excluded from the count relatives if investor in same household anyone classified as accredited investor.
-bus entity or lp where investor owns 50% or more is excluded unless formed solely for purchasing

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5
Q

10b-18

A

Price paid no more than the greater of highest current independent bid or last reported sale

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6
Q

Reduction of excess SIPC coverage

A

Notify customers at least 30 days prior

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7
Q

Dat trading risk disclosure

A

must be given to customers of firms that promote a day trading strategy

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8
Q

OSJ must review accts

A

Review accts periodically and discretionary accts frequently

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9
Q

SMA

A

Customer may use balance to buy 2x that amount in securities.
=excess equities=credit line
Can be released provided no maintenance call

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10
Q

REGX

A

REGt of foreign b/d or reg-u foreign bank

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11
Q

Lending agreements

A

Ap can lend borrow from customer with written approval/notice
Immediate family
biz of lending
Reg with same firm as rep
personal or biz relationship outside of broker/cust relationship

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12
Q

continuous quote rule

A

12 bds during 30 day calendar

no more than 4 consecutive days without quotation

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13
Q

OTBB

A

quotes:

Firm, subj ioi’s one sided and need phone #

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14
Q

Dept of Enforcement

A

Can censure suspend or expel. no jurisdiction over other SRO’s such as regional exchanges

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15
Q

FocusII, IIa

A

within 60 days of fiscal year end

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16
Q

SIPC Assessments

A

based on Gross volumes not by clearing

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17
Q

OTCBB

A

No formal listing standard but must current in filings

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18
Q

Directed Order

A

Used to access a particular quote not a specific mm

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19
Q

Posted on the blotter

A

Receipts and delivery of securities & disbursements of cash must be posted on the blotter the BD following receipt of delivery.

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20
Q

MORC appeal

A

30 mins

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21
Q

Payments to mutual firms

A

3bds of trade or 1 bd of receipt whichever is later

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22
Q

Reclamation from BD

A

is available if member inadvertently accepts a delivery from another member a good but shud have been rejected.

In whole call never subj to reclamation

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23
Q

Needed to open acct

A

Name, address SS, DOB must verify id within a reasonable amount of time before or after account is open.

If no id WSP’s must describe what to do+ take what ever action is necessary

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24
Q

Rule 2330 Variable annuities

A

Recommended purchases and exchanges of deferred ( not immediate) variable and initial sub-account allocations

Doesn’t apply to sub-account a reallocations or additions

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25
QIB's
Pension fund, Bank, Insurance co invest company with Portfolios of $100mm or more. BD's $10mm or more
26
Immediate family
Spouse parents, brothers, sisters in laws and children Aunts and Uncles are excluded
27
OTCBB additional offering period prospectus
40 days
28
OTCBB initial offering prospectus
90 days
29
Nasdaq ipo prospectus
25 days additional no requirements for nyse or nasdaq
30
Prepayment Subordinated loans
Approval from DEA Outstanding 1 year Capital cant fall below 120% AI:NC
31
CFD will comp recvd by under writer?
180 days preceding filing
32
Code of Procedure member can be suspended by whom?
NAC or district hearing panel. SEC can modify affirm penalities
33
Buying power for day traders is?
4 maintenance margin excess or sma. $25k initial margin
34
503 Formd
15 days
35
Maxsize under reg a
$50mm 12 month period
36
Firm will be prohibited from selling a security as principle & buying as agent for a customer if Fail to deliver is how old?
60 days or older
37
Client Dies
Death Certificate Affidavit of domecile inheritance tax waiver Power of Atty invalid upon death
38
FINRA immediate Notification
Books and records not current D/e is at 80% for 100 days Early warning is net cap below 120% ai:nc exceeds 12:1
39
Properly Signed & Guarrranteed stock or Bond Power
is a document attached to a certificate authorizing transfer of ownership to another party or when a security is hypothecated intent to transfer ownership or pledging securities as collateral for a loan
40
Net Capital rule notification within 24 hours
Inadequacy accounting above 12:1 but not above 15:1
41
Underwriting Compensation
No freely transferable stock (180 days restricted) any right of refusal right longer than 3yrs options below POP Option life longer than 5 years
42
Complaints filed
quarterly
43
Finra rules accept decline trade exceeding limits within how long
15 minutes of execution
44
B/D to prepare trial balances how long
Monthly
45
Rule 147 how long held
6 months...or resale to a person within that state
46
Principle must review
Order tickets retail communications new account forms
47
Finra prohibits Investment company secrities from selling below POP unless
the buyer is a member firm, selling agreement in writing and is filling a customer order
48
OTCBB Eligible
Foreign securities that are SEC registered, DPP, delisted nasdaq, securities on a regional not eligible for consolidated tape
49
Eastern Account
undivided account which is a shared liability for unsold securities
50
Blotter pruchase & sale of securities must be posted to a bd blotter...
BD following trade date
51
Stand by purchase agreement
3 month lockup syndicate manager must report in writing disclosed in final prospectus
52
mediation rules
Both parties agree Either side may withdraw by written notice no consent is required mediator is prohibited from serving as arbitrator
53
Converms for DVP
no later than t+1
54
Delivery of street name securities
will always necessitate an inquiry of SIC
55
SMA
Cash deposits increase dollar for Dollar fully paid for stock increases 50% Stock Sale 50% is released
56
Inspections at a non supervisory Branch
once every 3 years
57
violation of net capital rule exceeds 70% for more than 90 days...what notification is required
immediate
58
early warning net cpital
exceeds 12:1 and 120% d/e
59
What can finra require
Provide info orally writting or electronically. give testimony under oath provide access to or copies of books and/or accounts
60
SIC
Street name always requires inquiry exception is member to member
61
Rep letters 5130
Initial verification positive affirmation annual negative consent
62
Stabilization- notice must be given where?
Prospectus and registration statement
63
Customer orders that improve a MM price or size must be displayed when?
immediately ( within 30 seconds)
64
SAR is filed when?
within 30 days
65
Form 3 filed when?
10 days
66
REGS holding period
1 year or 6 months if reporting
67
Partnerships are frozen when
Death of GP
68
FocusIIa
quartely within 17 bds
69
Excluded from definition of Branch office
Location of convenience temp location as part of BCP Back Office For primary residence to be excluded ap must not meet clients at location
70
Trailer Commission
12b-1 fee charged by mutual funds RR receives %
71
Non Directed order
Liability orders creates obligation to buy or sell. Market orders or marketable limit orders
72
5130 doesnt apply to members new issue employees but does apply to
employees of other member firms
73
PB min equity is
$500k min net capital is $1.5
74
When a bd suspects securities are lost & missing it has?
2bds 3rd subsequent bd to report loss to sic & transfer agent
75
Halts S&P 500
7, 13, 20
76
What is cxled on reverse split
Open orders above and below market Forward split shares increased / price decrease
77
FINRA prohibits repurchase agreements in....
nonexempt securities
78
Market halt how are regular orders and MOC treated
market limit orders are treated as GTC and held for execution the following day MOC are cxled
79
Cost net capital MM's
$5 and greater is 2500 5 and less 100 Min 100k and max 1mm
80
12b-1 fees can cover
cost of marketing and compensate sales personnel
81
rule 147
Stop s\transfer instructions to the agent barring certificate, cancellation & re-issuance in name of any non resident Legend not registered with sec act of 33 obtain a a written representation of residence
82
Fairness opinion
Material relationship last 2 years member receive comp contingent on completion inform that opinion came from party requesting opinion acted as financial adviser to transaction issued or approved by fairness committee
83
Complaint from dea who long to respond
25 days
84
Customer complaints kept for how long?
4 years
85
1940 inv company act the 75/5/ 10 rule
75% invested 5% or less of assets in any one security 10% or less voting stock in any 1 issue
86
Unit trusts are what
close ended
87
Municipal trusts are?
diversified in terms of coupon, rating issuer and maturity
88
what securities are act reported
Converts CQS securities BB equities High yield are reported thru trace
89
Members cant charge for...
forwarding proxies and for research
90
TRACE hours
8-6:30 with in 15 minutes of close... then within 15 minutes of open
91
FINCEN Form 112
10k or greater cash
92
TRACE who reports?
both parties...buyer and seller
93
Are margin securities subj to possession or control requirements?
no because they are at a bank collateralizing customer debit balances
94
.U
trades between midnight and 7:59:59 reported after normal market hours
95
*K filed when?
4bd's after an event
96
Mutual fund Financial statements filed when?
at least semi-annually
97
Fidelity Bond
highest required net capital over 12 months
98
TIC dies
Freeze account interest goes to estate
99
Insider trading penalties
25mm for firms 5mm for natural persons
100
If customer pays prior to settlement date....
transaction is not complete until securities are delivered into account
101
Seasoned issuer
must have a public float of $75mm
102
Stabilizing Bid
Notifiy exchange penalty free or penalty copy of prospectus short covering
103
Review of securities at a b/d may be risk based
must be able to id & prioritize those trades which pose greatest chance of rule violation
104
PMM exceeds its net dailly purchase
30% must seek excused withdrawal remaining of the day
105
b/d does not hold customer funds or securities
it is exempt from reserve requirement
106
BD has reported an erroneous trade to trf
Nasdaq will issue a written determination aggrieved party 30 minutes to appeal nasdaq null, void decline to act or adj trade
107
When does NASDAQ need to be notified of POP price
by 6:45pm the night before
108
Adj for divididends
those entered below market | buy limits and sell stops
109
Form 211 when
3 bds prior to entering quotes
110
Retails comms must disclose
if was a manager or co-manager of a public offering in security preceding 12 months
111
Subsidiary ledgers kept for how long
3 years
112
Sar $ amount threshold?
$5k
113
Interest corporate bonds
Begins to accrue on prior int payment date upto but including settlement date
114
Issuers must notify how many days before record date
10 days
115
DVP close out
35 days
116
physical delivers are made where?
office of buyer...seller incurs expenses
117
BD just terminated accountant...who must they notify?
FINRA and SEC within 15 bds
118
Blotters
Daily purchases & sales receipts and delivery of securities distro of cash as well as id of account for which each trade is effected. Commissions are not on blotter
119
Series 27
Fin ops principal
120
Customer occupation and tax id must be obtained prior
to 2nd sd of initial transaction
121
AML compliance program approved by whom?
Senior management of firm not required to be a registered individual most be monitored by an ap
122
Cold calling
8am to 9pm
123
A short sale effected the day before the ex div date will result
being paid to the buyer
124
SS occurs on the exdate
the dividend will be paid to the lender
125
Oats does not include
CRD number
126
Carrying BD must have physical possession or control of
fully paid and excess margin securities

Series 24 made by rich (7 decks)

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