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Series 27 > Tidbits > Flashcards

Tidbits Flashcards

1
Q

A BD that receives but does not hold customer securities must maintain a min NC of

A

50,000

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2
Q

Minimum margin on a new account is how much

A

2,000

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3
Q

The exercise cuff-off for listed stock options about to expire is

Listed options contract for equity securities expire when

A

5:30 EST on the third Friday of every month

At midnight on the third Friday of each month

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4
Q

Customer fails to deliver are required to be bough in an which day past S or T

A

After the 10th business day past S

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5
Q

Under the uniform practice code, buy-in of fails to receive may be made how many days after written notice

A

two business days have elapsed after the date written notice is sent

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6
Q

Are long option contracts marginable

A

No, they must be paid in full

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7
Q

A contract that has not been completed by the seller according to its terms may be closed by the buyer (bought-in) no sooner than the

A

3rd business day following the date of delivery was due

Must give notice to seller no later than 12pm, 2 business days prior to the buy-in.

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8
Q

How many business days can elapse before securities that are suspected to be lost must be reported to SIC on the following business day

A

2 business days

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9
Q

If a customer has free credit balance that reduces customer debits, how to calculate how many shares need to be in possession or control

A

(Customer debit - free credits) * 140% = allowable rehypothecation

(MV of securities - allowable rehypothecation) / price per share

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10
Q

base haircut to be taken on a money market fund is

A

2%

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11
Q

Long securities differences that are sold will impact total available capital and net capital in what way

A

Total available capital: Will increase

Net capital: Is unaffected

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12
Q

Simplified arbitration is available for claims where the amount in dispute does not exceed

A

50,000

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13
Q

Under 15c3-1 for commodities balances, equity balances in the commodities accounts of partners affect AI and NC in what way

A

Aggregate Indebtedness: Excluded

Net Capital: Excluded

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14
Q

CTR reports of currency transactions over 10k must be filed with finCEN within and retained for?

A

15 calendar days
Retained for 5 years

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15
Q

What is the definition of stock power

A

A limited power of assignment or substitution given to the BD

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16
Q

Blotters are used to record

A

all trades, no later than the day after trade date

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17
Q

What are the minimum thresholds on a single security for a undue concentration haircut for tentative NC (de minimis)

A

Equity security: The greater of 10k or MV of 500 shares

Debt security: 25k

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18
Q

Is mortgage payable aggregate indebtedness?

A

No

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19
Q

How many business days can elapse before securities that are suspected to be stolen must be reported to the SIC

A

1 business day

20
Q

Independent verification of the 4 critical pieces of information provided by a customer at account opening must occur

A

Within a reasonable time after account opening

21
Q

Haircut types on investment grade convertible bonds are (below par/above par)

A

Below par: debt haircut

Above par: Equity haircut

22
Q

Reports of suspicious activities must be filed with FinCEN

A

Within 30 calendar days of initial detection

23
Q

Inside information is considered public when the information

A

Is available for public evaluation

24
Q

Subsidiary records must be kept for how many years and posted in how many days

A

Kept for 3 years

Posted no later than 2 business days

25
Q

A fail to receive for the firm’s account that is sold will have what affect on net worth and aggregate indebtedness

A

New worth: Nothing

Aggregate Indebtedness: Increase

26
Q

Under Reg T, what price is used for valuing securities held in margin accounts

Closing bid
Closing offer
Closing sale
Opening price

A

Closing sale

27
Q

A person is defined as a non-public arbitrator if they have devoted

A

20% or more of their professional work to securities firm clients within the last 2 years

28
Q

Which BD’s do not have to file a supplemental inventory schedule?

A

Introducing BD with 50k NC

Mutual funds dealer who accepts wire orders from customers

29
Q

Are short securities differences debit or credit items in the reserve formula?

After how many days are they included in the reserve formula?

A

Short securities differences are credit items in the reserve formula and are included after 30 days.

They must be bought in after 45 days

30
Q

Corporate dividends receivable are an allowable asset if they are under how many days

A

no older than 30 days

31
Q

Good Faith deposit - corporate are an allowable asset if they are under how many days

A

No older than 11 days

32
Q

Who must maintain blanket fidelity bond coverage under finra rules?

A

Market Maker

33
Q

For a BD to participate as a selling group member in a firm commitment underwriting, the min NC requirement is:

A

50,000

34
Q

Is stock borrowed by a BD subject to HC?

A

No. The BD gives the lender 100% of the security value in cash which will be returned when the stock is returned.

35
Q

OFAC rules require that transactions be blocked if they are effected with:

A

SDN’s = Specially designated persons (Syria, Iran, Tailban, etc)

36
Q

Affect on Net capital when a long security difference is sold

A

Deducted from net capital

37
Q

Puts are out of the money when

A

the market price is higher than the strike price

38
Q

Puts are in the money when

A

the market price is lower than the strike price

39
Q

under finra rules, customer complaints must be retained for

A

4 years

40
Q

trade comparisons for transactions not reported to ACT must be mailed to the contra-broker no later than

A

T+1

41
Q

Customer fails to deliver are excluded as a debit item in the special reserve computation if they are older than how many days

A

30 calendar days

42
Q

Calls go in the money when

A

the market value rises above the strike price

43
Q

Calls go out of the money when

A

the market price falls below the strike price

44
Q

general securities broker also means a

A

Clearing broker with 250k NC requirement

45
Q

A broker deals that writes or endorses OTC options contracts has a min NC requirement of

A

100,000

46
Q

Under FINRA financial responsibility rules when must a firm report that it’s NC is below 150% of minimum

A

24 hours

47
Q

Under FINRA financial responsibility rules when must a firm report that AI/NC is more than 10:1

A

24 hours

Series 27 (7 decks)

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