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Series 7 > Unit 17 > Flashcards

Unit 17 Flashcards

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Series 7 Top-off Exam flashcards
1
Q

What are the two types of bond deliveries never subject to reclamation?

A
  1. Bond certificates subject to an in whole call
  2. Bonds where the issuer goes into default after the trade date
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2
Q

Occurs when a buyer, after accepting securities as good delivery, later discovers that the certificates were not in good deliverable form. The securities can be sent back to the selling dealer with a form attached

A

Reclamation

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3
Q

A situation in which the BD on the sell side of a transaction or contract does not deliver the specified securities to the BD on the buy side

The firm representing the seller just buy in the securities after 10 business days from the settlement date

A

Fail to deliver

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4
Q

A standard form that duplicates the back of a stock certificate and is used for transferring the stock to the new owners name

A

Stock/bond power

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5
Q

A printed statement showing the obligation of a seller to deliver securities or rights to the purchaser. A due bill is also used as a pledge to deliver dividends when the transaction occurs after the record date

A

Due bill

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6
Q

When does a sellers option settle?

A

No sooner than T+3

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7
Q

A settlement contract that calls for delivery and payment according to a number of days agreed to by the buyer. The earliest delivery can be made is settlement plus 1 business day

Buyer must be given one day prior written notice if going to settle early

A

Sellers option

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8
Q

What is an example of clearinghouse funds?

A

Personal or business checks

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9
Q

Represents payments that have same day availability

Ex: inter dealer trades in government securities

A

Federal funds

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10
Q

When do money market securities settle?

A

Same day

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11
Q

When do T-Bills, T-Notes, T-Bonds and options settle?

A

T+1

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12
Q

When do corporate, municipal and government agency securities settle?

A

T+2

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13
Q

Delivery of the certificate by the seller and payment by the buyer on settlement date- currently T+2 for the regular way

A

Good delivery

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14
Q

A series of rules, interpretations and explanations designed to make uniform, where practical, custom, practice, usage and trading technique in the investment banking and securities business, particularly with regards to operational and settlement issues

A

The Uniform Practice Code (UPC)

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15
Q

Refers to a security not currently traded on any of the OTC quoting marketplaces or quoted on any other US quotation medium such as Nasdaq

A

Grey market

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16
Q

The direct trading of larger blocks of securities between institutional investors through a computer network (ECN)

Open 24 hours a day and acts solely as agents

A

Forth market

17
Q

A trading market in which exchange listed securities are traded over the counter

Trades are reported within 90 seconds of execution

A

Third market

18
Q

Operated by MSRB

Collects and disseminates transaction data in municipal securities for market transparency, surveillance purposes and analytics

Data is captured and made available within 15 minutes of trade

Maintains audit trail and provides regulators with transaction data and related info to enhance surveillance capabilities

A

Real time transaction report system (RTRS)

19
Q

Funded and operated by MSRB

Centralized online site used to locate key info about municipal securities

Presented to retail, nonprofessional investors

Free of charge

A

Electronic municipal market access (EMMA)

20
Q

A supervisory employee at a BD

A party in a transaction who is trading for the parties own account

A

Principal

21
Q
  1. An individual or firm that effects securities transactions for the accounts of others.
  2. A securities salesperson who represents a BD or issuer when selling or trying to sell securities to the investing public; this individual is considered this whether he actually receives or simply solicits orders

Executes all orders brokerage firms leave with them

A

Agent

22
Q

Facilitates through which members report transactions in stocks listed on the NYSE and Nasdaq stock market when the trades are made off the exchange (OTC)

Market hours: 9:30am- 4:00pm EST

A

Trade Reporting Facilities (TRF)

23
Q

What is excluded from TRACE?

A
  1. Debt foreign governments
  2. Money market instruments
  3. Debt securities that are not depository trust eligible
24
Q

FINRA approved trade reporting system for corporate bonds trading in the OTC secondary market

It is only a reporting system

Both sides of transaction must report

Trades must be reported no later than 15 minutes after execution

A

The Trade Reporting and Compliance Engine (TRACE)

25
Q

Trading volume that occurs or liquidity that is not openly available to the public

Bulk of volume is trades engaged by institutional traders and trading desks away from exchange markets. Large volume transactions

A

Dark pools

26
Q

Provides subscribers with all services and allows registered market makers to input and update their quotes on any securities in which they make at market

A

Nasdaq Level 3

27
Q

Available to approved subscribers only

Provides the current quote and quote size

Market maker just guarantee that the quote is firm for at least 100 shares

A

Nasdaq Level 2

28
Q

Available to registered reps through a variety of public vendors

Displays the inside market only, the highest bid and the lowest ask

A

Nasdaq Level 1

29
Q

What would not be included in an order ticket?

A
  1. Current market price
  2. Clients name and address
30
Q

What information is in an order ticket?

A
  1. Account number
  2. Rep number
  3. Solicited vs unsolicited
  4. Discretionary
  5. Symbol
  6. Number of shares and price
  7. Buy or sell
  8. Options
  9. Restrictions
  10. Type of account
  11. Time and date
31
Q

The form completed by a registered representative that contains customer instructions regarding the placement of an order

A

Order memorandum

Series 7 (12 decks)

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