Exam (elaborations)
FINRA SERIES 10 MASTER QUESTIONS AND ANSWERS WITH SOLUTIONS 2025
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FINRA SERIES 10 MASTER QUESTIONS AND ANSWERS WITH SOLUTIONS 2025
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FINRA SERIES 10 MASTER QUESTIONS ANDANSWERS WITH SOLUTIONS 2025
A,registered,representative,is,called-
up,for,active,military,duty.,During,the,time,period,that,the,individual,is,on,military,leave,,that,pe
rson's,registration,is:
A.,Terminated
B.,Suspended
C.,Inactive
D.,Active,-,ANSWER,C.,Inactive
If,a,registered,individual,is,called-
up,for,military,duty,,his,or,her,registration,becomes,"inactive",and,basically,sits,there,in,suspens
e,until,he,or,she,returns,to,the,securities,business.,Then,it,simply,picks,up,where,it,was,left,off.
Research,personnel,are,permitted,to:
A.,offer,to,follow,a,company,that,is,interested,in,using,the,services,of,that,firm's,investment,ban
king,department,to,go,public,by,issuing,quarterly,research,reports,on,that,issuer.
B.,offer,to,issue,a,"buy",recommendation,to,a,company,that,is,interested,in,using,the,services,of,
that,firm's,investment,banking,department,to,go,public
C.,inform,an,issuer,that,if,it,does,not,use,the,firm's,investment,banking,services,,that,the,broker-
dealer,will,stop,issuing,favorable,research,reports,on,that,issuer
D.,inform,an,issuer,that,the,broker-
dealer,is,going,to,terminate,coverage,because,of,a,management,decision,to,stop,following,that,i
ndustry,-,ANSWER,D.,inform,an,issuer,that,the,broker-
dealer,is,going,to,terminate,coverage,because,of,a,management,decision,to,stop,following,that,i
ndustry
A,registered,representative,posting,on,a,blog,is,defined,as:,
A.,advertising
B.,sales,literature
C.,public,appearance
,D.,correspondence,-,ANSWER,A.,Advertising
FINRA,defines,interactive,(real-
time),content,on,blogs,,social,networking,sites,and,chat,rooms,as,a,public,appearance.,On,the,ot
her,hand,,non-
interactive,(static),content,on,blogs,,social,networking,sites,and,chat,rooms,is,defined,as,advertis
ing.
A,registered,representative,makes,an,appointment,to,meet,a,customer,at,the,local,diner,to,discu
ss,her,portfolio.,FINRA,defines,the,meeting,place,as,a(n):
A.,office,of,convenience
B.,branch,office
C.,satellite,office
D.,non-branch,office,-,ANSWER,A.,office,of,convenience
A,location,where,a,registered,representative,meets,a,customer,by,appointment,on,a,non-
regular,basis,is,an,"office,of,convenience",and,is,not,defined,as,a,branch.
If,there,is,a,customer,complaint,,FINRA,retains,jurisdiction,over,a,resigned,member,for:
A.,30,days
B.,6,months
C.,2,years
D.,3,years,-,ANSWER,C.,2,years
A,resignation,from,FINRA,is,not,effective,for,30,days.,However,,if,there,is,a,customer,complaint,,
FINRA,retains,jurisdiction,for,2,years.
If,a,registered,individual,is,terminated,,FINRA,must,be,notified,with,a,U5,Form,within:
A.,1,business,day
,B.,5,business,days
C.,10,business,days
D.,30,business,days,-,ANSWER,D.,30,days
If,an,individual,is,terminated,,FINRA,must,be,notified,by,the,firm,within,30,days,of,termination,o
n,a,U5,Form;,and,a,copy,of,the,form,must,be,supplied,to,the,ex-employee.
An,individual,that,has,been,registered,as,a,representative,for,9,years:
A.,is,exempt,from,the,Regulatory,Element,of,the,Continuing,Education,requirement
B.,must,complete,the,Regulatory,Element,of,the,Continuing,Education,requirement,every,2,year
s
C.,must,complete,the,Regulatory,Element,of,the,Continuing,Education,requirement,every,3,year
s
D.,must,complete,the,Regulatory,Element,of,the,Continuing,Education,requirement,every,5,year
s,-
,ANSWER,C.,C.,must,complete,the,Regulatory,Element,of,the,Continuing,Education,requirement,
every,3,years
Any,registered,individual,must,complete,the,Regulatory,Element,of,the,Continuing,Education,re
quirement,on,the,2nd,anniversary,of,registration,and,every,3,years,thereafter.
Note:,Effective,January,2023,,Regulatory,Element,CE,must,be,completed,annually,and,within,the
,calendar,year.,Do,not,expect,this,to,be,tested,until,the,effective,date
A,potential,new,hire,candidate,discloses,to,the,branch,manager,that,he,was,in,a,horrible,car,acci
dent,and,that,he,was,convicted,of,the,felony,charge,of,involuntary,manslaughter,6,years,ago.,Thi
s,individual:
A.,is,not,required,to,disclose,the,information,on,the,U4,application
B.,must,disclose,the,information,on,the,U4,application,and,will,be,able,to,be,registered,with,no,f
urther,action,taken
C.,can,only,be,hired,in,a,clerical,capacity
, D.,cannot,be,hired,as,a,registered,representative,-
,ANSWER,D.,cannot,be,hired,as,a,registered,representative
Any,misdemeanor,conviction,involving,securities,or,monies,and,any,felony,must,be,disclosed,on,
the,U4,Form,and,is,cause,for,statutory,disqualification.,Since,this,is,a,felony,conviction,,it,must,b
e,disclosed,on,the,U4,and,it,will,automatically,disqualify,the,individual,from,registration.,(Howev
er,,the,individual,can,request,an,Eligibility,Proceeding,to,overcome,the,statutory,disqualification,
,but,this,is,not,asked,in,the,question.)
A,few,weeks,after,FINRA,has,completed,its,inspection,of,a,member,firm,,it,sends,the,firm,a,requ
est,for,copies,of,certain,client,files.,Which,method,of,delivery,to,FINRA,is,acceptable?
A.,Memory,stick
B.,CD,with,a,key,code,enclosed,in,the,same,envelope
C.,Hard,copies,sent,via,overnight,delivery
D.,unencrypted,email,-,ANSWER,C.,Hard,copies,sent,via,overnight,delivery,
In,response,to,an,information,request,from,FINRA,,the,required,documents,can,be,shipped,on,p
aper,or,electronically.,Regarding,electronic,delivery,,the,files,must,be,sent,in,encrypted,form,,wit
h,the,code,or,key,sent,separately.,Thus,,Choices,A,,B,and,D,are,all,unacceptable,forms,of,electro
nic,delivery.,So,we,are,left,with,sending,good,,old,,paper,files!
Which,gift,valued,at,more,than,$100,could,be,accepted,by,a,registered,representative?
A.,Dinner,voucher,received,from,a,long,standing,client,for,the,representative's,excellent,work
B.,Wedding,present,received,from,a,family,member,that,is,a,client
C.,Tickets,to,a,ball,game,from,a,client,seeking,a,large,IPO,allocation
D.,Transportation,by,limousine,service,to,and,from,a,conference,held,70,miles,away,-
,ANSWER,B.,Wedding,present,received,from,a,family,member,that,is,a,client.,
Regarding,the,gift,limit,,the,$100,limit,does,not,apply,to,gifts,of,a,personal,nature,-
,such,as,a,wedding,gift,or,gift,upon,the,birth,of,a,child;,and,does,not,apply,to,promotional,items,
that,display,the,offeror's,logo,,such,as,golf,balls,,shirts,,etc.
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