New Stock in registration phase.... correct answers RR may NOT send out report! This would constitute an offer.
Under Rule 144, a customer wishing to sell must file 144 'Notice of Sale' with SCC correct answers Concurrent with placement of the sale order
Allowed prior to the filing of the Reg...
Series 10 || with 100% Errorless Answers.
New Stock in registration phase.... correct answers RR may NOT send out report! This would
constitute an offer.
Under Rule 144, a customer wishing to sell must file 144 'Notice of Sale' with SCC correct
answers Concurrent with placement of the sale order
Allowed prior to the filing of the Registration statement correct answers NOTHING!
No Rule 144? correct answers No filing is required if the sale amount every 90 days does not
exceed 5000 shares nor more than $50,000.
3 Year Records correct answers Order Tickets
Communications to Customers
Customer complaints (CBOE )
Advertising.
6 Year Records correct answers Customer Acct Statements
Trade Bloggers
Cash receipts (disbursement blotters)
District Hearing Panel correct answers Customer files standard complaint form, which is
forwarded to DHP.
Panel renders dicision within 60 days
A registered rep is fined more than $2500 correct answers This must be filed (reported) promptly
with FINRA (NO LATER THAN 30 DAYS after event)
This is a reportable event.
Rule 147 correct answers Intrastate offerings cannot be resold out of state for 9 months after sale
date.
Requirements of Rule 147 correct answers The issuer must obtain proof of residency from each
purchaser. The issuer must place a restriction legend on the certificates. The issuer must be a
resident of that state.
Rule 10b-2 correct answers Prohibits underwriter, issuer, or participant in a new issue
distribution from placing buy orders for the issue, buying the issue, or taking options positions
on the issue in the aftermarket.
Who is prohibited from buying an IPO of an equity security under Rule 5130? correct answers
Portfolio Manager of an Investment Company and a Portfolio Manager of Insurance Company
(Investment Co. and Insurance Co. CAN buy an IPO).
, The FINRA IPO Policy that prohibits industry "insiders" from buying new equity issues applies
to: correct answers NEW COMMON ISSUES
(it does NOT apply to Debt offerings, Secondary Common stock distributions, and Private
placements under Reg D.)
Orders that are placed below the market... correct answers .... are reduced on ex-date, for cash
dividends. (OBLOSS).
Orders that are placed above the market.... correct answers .... are not reduced on ex-date for cash
dividends. (OSLOBS).
If there is a stock dividend or stock split... correct answers then all open orders will be adjusted.
Stock dividends that result in round lots (NYSE): correct answers Number of shares Increased
and Price reduced.
Stock splits that result in Odd Lots (NYSE): correct answers Number of Shares STAYS THE
SAME, and the price is still reduced.
If there is a reverse split (NYSE): correct answers All open orders and cancelled.
Commission on OTC and Exchange Agency Trades correct answers COMMISSION
DISCLOSED!
Mark-up on OTC Principal Transactions in NASDAQ Issues correct answers MARK-UP
DISCLOSED!
Non-NASDAQ OTC Principal Transactions correct answers Mark-up NOT disclosed!
Max sales charge on Fund that DOES NOT impose 12b-1 fee: correct answers 8 1/2 %
ABC corporation has 18,000,000 shares outstanding. An officer of ABC wishes to sell ABC
stock on November 15th. The prior weeks' trading volumes are:
Week Ending Volume
Nov 12th 175,000 shares
Nov 5th 185,000 shares
Oct 30th 180,000 shares
Oct 23rd 170,000 shares
Oct 16th 205,000 shares
If the Form 144 has been filed the preceding week, how many shares could have been sold?
correct answers 185,000 shares
The answer is the greater of 1% of the outstanding shares or the average of the last 4 weeks of
shares sold.
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