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FINRA SIE Exam Rules 180 Questions with Verified Answers,100% CORRECT
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FINRA SIE Exam Rules 180 Questions with Verified Answers
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FINRA SIE Exam Rules 180 Questions with Verified AnswersRule 147 - CORRECT ANSWER SEC rule that provides exemption from the
registration statement and prospectus requirements of the 1933 Act for securities
offered and sold exclusively intrastate.
Regulation D - CORRECT ANSWER SEC rules concerning PRIVATE PLACEMENTS and
defining related concepts such as ACCREDITED INVESTOR. You can sell to only up
to 35 non-accredited investors.
Rule 144 - CORRECT ANSWER A regulation that provides for the sale of restricted
stock and control stock. Filing with the SEC is required prior to selling restricted
and control stock. The number of shares that may be sold is limited. You must
hold restricted stock for 6months/1year or at least until the company goes public.
Rule 144A - CORRECT ANSWER An exemption to the holding period and volume
restrictions of Rule 144 for qualified institutional buyers (QIBs).
Rule 145 - CORRECT ANSWER A regulation covering mergers and acquisitions that
also exempts stock splits and stock dividends from the registration requirements
of the Securities Act of 1933. Other reclassifications must be registered with the
SEC.
Securities Act of 1934 - CORRECT ANSWER A law governing the secondary trading
of securities in the US; established the SEC (Securities and Exchange Commission).
Requires companies to issue 10Ks and 10Qs.
FINRA Rule 2120 - CORRECT ANSWER Broker/dealers must charge fair buy/sells
prices and charge fair commissions.
SEC Rule 15c2-12 - CORRECT ANSWER Current information about municipal
issuers and securities must be available.
,FINRA Rule 2090 - CORRECT ANSWER Know your customer when they open their
account
MSRB Rule G-47 - CORRECT ANSWER
Securities Act of 1933 - CORRECT ANSWER The first major federal law regulating
the securities industry. It requires firms issuing new stock in a public offering to
file a registration statement with the SEC. (Prospectus)
FINRA Rule 5130 - CORRECT ANSWER Underwriters must make bona fide offerings
- they cannot sell to restricted persons and their immediate family members. In
addition, they must execute transactions at prices that are favorable under the
prevailing market conditions.
MSRB G-11 - CORRECT ANSWER Syndicate must establish priority for allocating
orders. Presale, Group, Designated, Members.
MSRB Rule G-32 - CORRECT ANSWER Information must be provided no later than
settlement date when buying new municipal security.
FINRA Rule 5220 - CORRECT ANSWER Market makers must maintain and honor
firm quotes.
FINRA Rule 6438 - CORRECT ANSWER Quotes on OTC Pink must be the same as
OTCBB (OTC Bulletin Board)
SEC Regulation D - CORRECT ANSWER Stabilization bids (greenshoe) must be
announced in advance.
FINRA Rule 5290 - CORRECT ANSWER Prohibits Trade Shredding (splitting orders
to smaller orders for execution).
FINRA Rule 5230 - CORRECT ANSWER Firms can't give payments or anything else
of value to media publications to influence the price of the security.
,FINRA Rule 5210 - CORRECT ANSWER A firm cannot publish or circulate securities
or transactions reports unless they believe that the quote is bona fide and
legitimate.
FINRA Rule 5250 - CORRECT ANSWER Prohibits firm from accepting any direct or
indirect to be a market maker.
FINRA 5270 - CORRECT ANSWER No orders can be made by a firm that has
material non-public information about a block trade (over 10,000 shares). Doing
so would be called front-running.
FINRA Rule 5280 - CORRECT ANSWER Prohibits firms from establishing, increasing,
or decreasing inventory of securities ahead of research reports. This prevents
broker-dealers from benefiting off non-public information.
Regulation T - CORRECT ANSWER A federal reserve board regulation that
established the requirement for customers to deposit 50% of the market price
when they purchase or sell securities short on margin.
FINRA Rule 3230 - CORRECT ANSWER People who are making calls on behalf of a
firm can do so between the hours of 8:00 AM and 9:00 PM in the local time of the
person being called.
FINRA Rule 4512 - CORRECT ANSWER With a new account application, brokers
need to collect full legal name, legal U.S. address, telephone number, SSN, etc.
SEC Rule 17a-4 - CORRECT ANSWER Requires firms to ensure that customer
account information is accurate and up to date.
FINRA Rule 2264 - CORRECT ANSWER Provide a margin disclosure statement to
each customer prior to or at the time of opening an account. The notice is
required annually.
FINRA Rule 2510 - CORRECT ANSWER Require that customers grant discretionary
authority in writing via a power of attorney.
Form BD - CORRECT ANSWER New registration form for a broker-dealer
, Form U4 - CORRECT ANSWER Registration from for a securities agent or principal
of a broker-dealer or an investment adviser representative. It collects key
information such as name, SSN, residential address, employment history, and
educational background.
FINRA Rule 3310 - CORRECT ANSWER Firms are mandated to ensure the good
standing, experience, and qualifications of potential employees prior to their filing
a U4.
FINRA Rule 1010 - CORRECT ANSWER A designated registered principal or
corporate officer is to oversee the firm's registration functions.
FINRA Rule 2263 - CORRECT ANSWER All registered representatives are to sign a
pre-dispute arbitration agreement. This states that future disputes or
controversies between the firm and rep is to be settled through arbitration rather
than the court.
Form U5 - CORRECT ANSWER When a registered representative resigns or is
terminated from employment with a member firm, the firm is required to notify
FINRA within 30 days by filing Form U5 with the applicable details.
FINRA Rule 8312 - CORRECT ANSWER Regulators must make background
information on broker-dealers and registered representatives publicly available.
You may see their information on BrokerCheck online.
Investment Advisers Act of 1940 - CORRECT ANSWER Investment advisers are
required to register (RIA). Registration allows prospective investors to see
investment adviser background, business methods, fee structure, etc.
Form ADV - CORRECT ANSWER Registration from for an investment adviser -
usually for 100mm assets under management.
FINRA 2010/2020 - CORRECT ANSWER All firms are required to conduct
themselves and their activities with high and equitable standards to ensure
fairness within the capital markets.
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