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Series 24 Vocabulary Questions with complete solution 2024/2025 $13.49   Add to cart

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Series 24 Vocabulary Questions with complete solution 2024/2025

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Series 24 Vocabulary Questions with complete solution 2024/2025 Series 24 Vocabulary B/D may publish research reports when not acting as a distribution participant according to Rule ___ - correct answer 137 B/D may publish research reports when acting as a distribution participant for anth...

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  • September 28, 2024
  • 47
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers
  • SERIES 24
  • SERIES 24
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Series 24 Vocabulary
B/D may publish research reports when not acting as a distribution participant
according to Rule ___ - correct answer ✔137


B/D may publish research reports when acting as a distribution participant for
anther class of security (if selling stock, it can comment on debt) according to
Rule ____ - correct answer ✔138


If an issuer is a reporting company, a B/D may publish research reports when
acting as a distribution participant for the security; only if the firm is continuing
regular coverage (it may not be initiating coverage) according to Rule ____ -
correct answer ✔139


Regulation __ is a safe harbor by the SEC to sell securities outside of the US
without publicly registering. - correct answer ✔S


Regulation S Holding requirements: - correct answer ✔Non-convertible debt
= 40 days
Security of Reporting Co.= 6 months
Security of non-reporting Co.=1 year


SEC Rule 15c3-1 - correct answer ✔-net capital rule
-prevents a B/D from becoming overleveraged by requiring a specific
aggregate indebtedness to net capital ratio (AI/NC)


Minimum net capital requirements - correct answer ✔-prime broker=
$1,500,000
-Block Positioners/Executing Firms=$1,000,000

,-Carrying Brokers=$250,000
-Underwriters/Market Makers=$100,000: $1,000 per stock priced $5 or less,
$2,500 per stock priced above $5, Max $1,000,000
-Non-Carrying (receive/forward)=$50,000
-B/D's that do not accept cash/securities=$5,000


What is net capital based on? - correct answer ✔size of the firm and the
nature of its business


Net Capital= - correct answer ✔Book Equity+Year to Date
Results+Satisfactory Subordinated Loans=Total Capital


Total Capital-Non-allowable Assets=Tentative Net Capital


Tentative Net Capital-Haircuts=Net Capital


In order to participate in a firm-commitment underwriting or to make markets
in securities, a firm needs at least _____ of net capital - correct answer
✔$100,000


What is included in Aggregate Indebtedness? - correct answer ✔-fails to
receive for the acct of customers
-fails to receive for the acct of the firm, resold
-loans collateralized by customer securities
-securities loaned for the accts of customers
-customer credit balances
-accounts payable
-taxes payable

,What is the trial balance? - correct answer ✔-listing of all accts in a firm's
general ledger, divided into two groups: debits and credits
-used to create income statement, balance sheet, net capital, etc.
-prepared monthly


AI to Net Capital Ratio requirements - correct answer ✔-AI/NC must be less
than or equal to 15/1
-8/1 for first year firms


Alternative Net Capital Requirement - correct answer ✔-for larger B/Ds
-based on aggregate debit items
-required to maintain net capital of $250,000 or 2% of the aggregate debit
items, whichever is greater


Haircut Reductions: - correct answer ✔-Cash=0%
-Common Stock=15%
-Limited Market Stock=40%
-Assets not convertible to cash=100%
-Restricted Stock=100%


Undue Concentration Deduction - correct answer ✔-when any long or short
position is more than 10% of the B/Ds net capital


Fail to deliver - haircut - correct answer ✔-good receivable, but after 3
business days have passed it requires a haircut of 15% to the current market
value of the stock

, The effective date of an IPO is determined by the ___ - correct answer
✔SEC


Involvement in bankruptcy within the past ____ will preclude an issuer from
obtaining WKSI status - correct answer ✔3 years


an issuer that loses its WKSI status after filing an ASR may continue that
offering until the next _____ is filed. - correct answer ✔10-K


Regulation A+ permits offerings of up to ______ - correct answer ✔$50
million


How long is the look-back period for a Reg A+ offering? - correct answer
✔12 months


A regulation 147 offering is restricted from out-of-state resales for _____ -
correct answer ✔6 months


A partnership may purchase a 147 offering even if some of its partners are not
state residents T/F - correct answer ✔True


Regulation D buyers sign a ________ - correct answer ✔investment letter
(agreeing to a 6-month lock-up period)


Regulation D/private placement issuers must issue _______ to their transfer
agents to ensure that no illegal sales occur - correct answer ✔stop transfer
instructions

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