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FINRA SIE Series 99 Exam 420 Questions with Verified Answers,100% CORRECT
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FINRA SIE Series 99 Exam 420 Questions with Verified Answers
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FINRA SIE Series 99 Exam 420 Questions with VerifiedAnswers
NYSE was founded in - CORRECT ANSWER 1792
Securities Act of 1933 - CORRECT ANSWER Covered new issue in primary markets;
IPOS; Full Disclosure; Prospectus; Red Herring
Securities Act of 1934 - CORRECT ANSWER Covered trading in secondary markets.
Formed the SEC; Antifraud Rules; Margin: Regulation T; Registers People
(Exchanges, Firms, Individuals).
Maloney Act of 1938 - CORRECT ANSWER Enabled the creation of non-exchange
SROs.
Item - CORRECT ANSWER Date/Number
CHAPTER 1 - OVERVIEW OF REGULATION - CORRECT ANSWER ...
NYSE was founded in - CORRECT ANSWER 1792
Securities Act of 1933 - CORRECT ANSWER Covered new issue in primary markets;
IPOS; Full Disclosure; Prospectus; Red Herring
Securities Act of 1934 - CORRECT ANSWER Covered trading in secondary markets.
Formed the SEC; Antifraud Rules; Margin: Regulation T; Registers People
(Exchanges, Firms, Individuals).
Maloney Act of 1938 - CORRECT ANSWER Enabled the creation of non-exchange
SROs.
NASD - CORRECT ANSWER Created in 1938 for NASD to act as SRO for OTC
market.
,Trust Indenture Act of 1939 - CORRECT ANSWER Added security for Bond
investors which requires and agreement (indenture) between the issuing
corporation and the trustee who acts on the behalf of the bond owners.
The Investment Company Act of 1940 - CORRECT ANSWER Covers companies that
formed to pool investor's money, e.g., Open-end Investment companies called
Mutual Funds; More than 100 shareholders; Minimum $100,000 in assets; Annual
reports to SEC; Semiannual reports to Shareholders.
The Investment Advisors Act of 1940 - CORRECT ANSWER Regulate firms that sell
their investment advice for a fee; includes managers of Wrap accounts where a
single fee is paid for investment advice and transaction costs; ABC Test (Advice,
Business, Compensation).
SIPA - Securities Investor Protection Act of 1970 - CORRECT ANSWER Covers
industry funded insurance which covers the customers of BDs (Brokers /Dealers)
where a BD might go bankrupt; $500,000 coverage per Separate Customer;
$250,000 limitation on Cash Coverage; Industry-Funded; Not part of U.S.
government.
ERISA - Employee Retirement Income Security Act of 1974 - CORRECT ANSWER
Provides standards for funding, vesting, fiduciary responsibilities of pension and
401(K) plans.
MSRB (Municipal Securities Rulemaking Board) of 1975 - CORRECT ANSWER To
write rules and regulation for the municipal markets.
Insider Trading Sanctions Act of 1984 - CORRECT ANSWER See below.
Insider Trading Act of 1988 (ITSFEA) - CORRECT ANSWER In response to 1980
scandals of Insider Trading of material and non-public information. No penalties
existed before; now (a) Criminal from DOJ - $5mm fines and/or 20 years
imprisonment; (b) Civil from SEC - Treble (3x) damages on amount gained or loss
avoided; disgorgement of profits; covers both Tippers and Tippees - any person
can be violated of this law; (c) Bounties - May not exceed 10% of the penalty.
,TCPA - Federal Telephone Consumer Protection Act of 1991 - CORRECT ANSWER
Discourage cold callings of consumers and those who calls must maintain a Do
NOT Call list. Can call only from 8 am to 9 pm in customer time zone
Penny Stock Rule of 1991 - CORRECT ANSWER Defined Penny Stocks to be less
than $5 and requires a firm to have a signed disco lure document from buyers
stating they understand the risks.
The USA Patriot Act of 2001 - CORRECT ANSWER "Covers Anti-Money Laundering
CTRs: $10,000 Currency Transaction Reports - CORRECT ANSWER ...
SARs: Suspicious Activity Report - CORRECT ANSWER ...
CIP Procedures" - CORRECT ANSWER ...
FINRA - CORRECT ANSWER "Created in 2007 by merging NYSE and NASD
regulatory functions.
FINRA is the primary SRO for the securities industry." - CORRECT ANSWER ...
Balance sheet has to be created before filing for IPO registration - CORRECT
ANSWER 90 days
Disclose share ownership of offers and underwritings as part of pre-filing in IPO -
CORRECT ANSWER If they own at least 10% of the securities
IPO cooling off period after registration process - CORRECT ANSWER 20 days
Effective Date in IPO - CORRECT ANSWER 20 days after the last amendment in
response to a deficiency letter as part of the IPO
Public Offering Price (POP) in IPO - CORRECT ANSWER Set in the morning of the
effective date and also called the Post Effective Date
In IPO purchaser must be delivered the final Prospectus - CORRECT ANSWER No
later than the time a sale is confirmed
, "Prospective Delivery Requirements - CORRECT ANSWER ...
(1) Non-reporting (will be listed) - CORRECT ANSWER ...
(2) Non-reporting (will not be listed; not an IPO) - CORRECT ANSWER ...
(3) Non-reporting (will not be listed but an IPO) - CORRECT ANSWER ...
(4) Reporting (currently Listed)" - CORRECT ANSWER "Continue to deliver
Prospectus for:
(1) 25 days - CORRECT ANSWER ...
(2) 40 days - CORRECT ANSWER ...
(3) 90 days - CORRECT ANSWER ...
(4) N/A (aftermarket prospectus does NOT apply)" - CORRECT ANSWER ...
Accredited Investor - CORRECT ANSWER "Net worth $1,000,000.
Individual gross income of $200,000; joint $300,000" - CORRECT ANSWER ...
Regulation D Private Placement securities may NOT be sold to - CORRECT
ANSWER More than 35 Non-Accredited Investors
Lock-Up period before Securities from pre-IPO investors, private placement
buyers, etc., can be sold - CORRECT ANSWER 6 months
Restricted Securities Rule 144 - CORRECT ANSWER "Holding Period
(1) 6 months - no resale - CORRECT ANSWER ...
(2) 6 months to 1 year - volume restriction (maximum of 1% of total outstanding
shares OR the average weekly trading volume of the past 4 weeks - CORRECT
ANSWER ...
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