FINRA Rules Exam Questions and Answers | 100% Pass

FINRA Rules Exam Questions and Answers | 100% Pass Regulation of the OTC Market - Answer️️ -FINRA and the SEC regulate the over-the- counter market The Federal Reserve Board decided which OTC securities are marginable FINRA-Market Regulation - Answer️️ -FINRA regulates all the securities markets: first, second, third and fourth FINRA associated persons who want to serve as an officer, director, partner or employee of another business - Answer️️ -FINRA requires that associated persons give written notice to their employer and receive written approval from their employer Business Entertainment - Answer️️ -Business entertainment does not fall under the $100 gift limit. Business entertainment is permitted as long as it is not too excessive or too frequent and it must comply with the firm's policies and procedures. Business entertainment means that the representative and the customer are together at some type of event. Referrals - Answer️️ -Registered representatives can only share commissions or pay referral fees to other registered persons at the same broker-dealer. Because these 2 representatives work for different firms, payment of the referral fee is prohibited. TITLE: EMILLYCHARLOTTE 2024/2025 ACADEMIC PERIOD OWNER: EMILLYCHARLOTTE COPYRIGHT STATEMENT: ©2024 EMILLYCHARLOTTE. ALL RIGHTS RESERVED FIRST PUBLISHED: SEPTEMBER 2024 2/9 The Regulatory Element of the Continuing Education Requirement - Answer️️ -Must be completed on the registrant's 2nd anniversary of registration and every 3 years after the initial review Failing to complete within 120 days means that the person's registration is suspended Assistant Representative- Order Processor - Answer️️ -Series 11 license Can take new account information and accept an unsolicited order Not Held Order - Answer️️ -As long as an order states the number of shares and the security to buy, the order can be accepted as given and performed without written discretionary power of attorney from the customer Customer complaints - Answer️️ -All customer complaint letters must be reviewed and handled by a principal. Internal documents of a brokerage firm do not have to be reviewed by a principal. FINRA 5% Policy on Mark Ups and Commissions - Answer️️ -A customer's ability to pay has no bearing on the amount of commission or mark-up that is charged. The dollar amount of the transaction, level of service provided by the firm, and the type of security involved are all considerations under the 5% Policy when determining a fair and reasonable commission or mark-up. TITLE: EMILLYCHARLOTTE 2024/2025 ACADEMIC PERIOD OWNER: EMILLYCHARLOTTE COPYRIGHT STATEMENT: ©2024 EMILLYCHARLOTTE. ALL RIGHTS RESERVED FIRST PUBLISHED: SEPTEMBER 2024 3/9 It applies to all OTC and exchange transactions (that do not involve a prospectus). Does not apply to new issuer offerings nor to mutual fund offerings (these things require a prospectus) Charging for Clerical Services - Answer️️ -Customers may be charged with: Collection of dividends on street name stock Safekeeping securities Collection of interest on bonds held in safekeeping NOT mailing of proxies on street name stock- the issuer reimburses the broker for this Guaranteeing/Sharing in Account - Answer️️ -Violations: -Sharing in the profits and losses of a customer's account without contributing proportional capital (they must open a joint account, obtain approval and contribute to it) -Orally guaranteeing to buy back customer securities at a preset price Repurchase Agreement - Answer️️ -Selling exemp