Unit 1 - Knowledge of Capital Markets

Question 1

Regulators

Who are the 3 Federal regulators of the securities industry?

Answer 1

Federal Regulators

SEC, FDIC, FRB

Question 2

Who is the main governing body of the Securities industry?

Answer 2

SEC - Securities and Exchange Commission

Question 3

Regulates Banks?

Answer 3

FDIC - Federal Deposit Ins. Corp

Deposit insured up to $250,000

Question 4

FRB - Federal Reserve (Board)

Answer 4

Regulates Banks (in totality)

Question 5

Securities industry regulators.

Answer 5

SRO’s - Self Regulatory Organizations

Question 6

Self-Regulatory Organizations

Answer 6

FINRA, MSRB, CBOE

Question 7

FINRA (a SRO)

Answer 7

Membership organization. Broker-dealers are members. Regulates member firms and associated person’s registered with member firms i.e., Registered Rep. or Registered Principle.

Question 8

MSRB what is the…? (an SRO)

Answer 8

Municipal Securities Rulemaking Board. Regulates Municipal Bond dealers.

Question 9

CBOE -what is the…? (it’s a SRO)

Answer 9

Chicago Board of Options Exchange. Regulates the Options industry. Regulates “Puts and Calls”

Question 10

What/who is the primary regulator for the securities industry?

Answer 10

FINRA (the primary focus of our study).

Question 11

SPIC (another Regulator)

Answer 11

Provides insurance for customers in the event of Broker/Dealer bankruptcy. How much SPIC coverage does one have? $500K per customer (not per account). No more than $250K for CASH. (CASH is uninvested money).