Unknowns 1 Flashcards
Days and Numbers
An investor’s eligibility to purchase an equity new issue must be confirmed _______________.
annually (called the pre-condition of sale).
T/F: For a seasoned issuer, a shelf registration becomes effective immediately.
False. A seasoned issuer may use a shelf registration, but it will be subject to SEC staff review.
A ________ state occurs if the NBB is below the lower band or the NBO is above the upper band, but not in a limit state.
straddle state occurs if the NBB is below the lower band or the NBO is above the upper band, but not in a limit state.
Letters of Intent may be back-dated for _____ days.
90 days
Nasdaq system hours are _____ a.m. to _____ p.m. ET.
4:00 a.m. to 8:00 p.m. ET
The Special Reserve Bank account must be evaluated by a carrying firm on a _______ basis.
weekly basis
How often are the circuit breakers that are used to determine the triggering of a trading halt reset?
Daily
True or False: An order-entry firm has 10 seconds to accept or reject a trade report submitted to FINRA.
False. The order-entry firm has 20 minutes to accept or reject a trade report submitted to FINRA.
How often must market centers publish reports of the efficiency of executions?
Monthly
True or False: National best offers below the Limit Up-Limit Down upper price band are non-executable.
False. An NBO below the Limit Up-Limit Down upper price band is executable.
Trades executed through an electronic system are reported _______________.
Trades executed through an electronic system are reported automatically.
Trades executed through an electronic system are reported _______________.
Automatically
Any awards granted by an arbitrator must be paid within how many days?
30 days
A syndicate member must wait ____ calendar days before publishing research on the issuer’s IPO
10 calendar days
Once a TRACE report is made, when is the information available to the public?
Immediately
Under LULD rules, failure to exit the limit state within 15 seconds results in a ____ minute trading pause.
Under LULD rules, failure to exit the limit state within 15 seconds results in a five minute trading pause.
How many business days prior to presentation must evidence of incumbency be dated?
No more than 60 days
What are the system hours of operation for the ADF?
8:00 a.m. to 6:30 p.m. ET
If a BD’s investment company communications include self-created rankings, when must they be filed with FINRA?
At least 10 business days prior to use
If the terms of a tender offer are changed, for how many additional days must the offer remain open?
For at least 10 business days from the change
Define short-swing profit.
A profit earned on stock held less than six months
Once placed, a tender offer must remain open for at least ____ business days from the announcement.
at least 20 business days
For how long are securities restricted if received by the syndicate as compensation?
Six months
True or False: Trades executed between 8:00 p.m. and 8:00 a.m. ET must be reported within 10 seconds of execution.
False. The 10-second reporting requirement applies to trades executed between 8:00 a.m. and 8:00 p.m. ET.