Unit 2 - Test Prep Flashcards
All of the following statements regarding branch offices are true
- a person-in-charge of a branch may be qualified as a Series 7 RR
- a branch may operate from a hole office
- a branch may shire a location with a bank office
A RR may conduct business from his vacation home and maintain his non-branch status as long as it is used for less than
30 business days annually
Which of the following statements about prime brokerage is true?
Large buy-side hedge funds look to prime brokers from financing and centralized clearing
All of the below forms are mandatory from a margin account
- new account form
- credit agreement
- hypothecation form
The SMA account
has a purchasing power of 200%
The initial purchase in a long margin account is 100 shares of ABC stock at $36. What is the required minimum deposit?
$2000
Simplified arbitration is available for disputes of no more than
$50k
The statute of limitations for arbitration is
6 years
If a rep possesses material inside information about a publicly traded company, under which circumstances may he communicate this information to a customer?
Under no circumstance
An introducing firm makes a market in 12 stocks trading above $5 shares. Under SEC 15c3-1, its minimum net capital requirement is
$100k
Under SEC 17a-11, all of the following require immediate notification to FINRA
- books and records not current
- debt/equity ratio has exceeded 70% for more that 90 days
- net capital has fallen below minimum
A clearing firm must provide its correspondent introducing firms with a list of exception reports available for their use by
July 1 of each year
Which of the below would be deemed a sales practice violation?
Breakpoint sale
A 66 year old investor purchased a variable annuity. The principal supervisory officer at a branch would be most interested in
suitability
