Securities Industry Essentials Exam Questions With Solutions

Securities Industry Essentials Exam Questions With Solutions Broker-Dealer that doesn't comply is subject to: - ANS -censure -limits on activities -suspension -revocation of reg -fine FINRA - ANS regulates all matters related to investment banking, trading in the OTC market, trading in the NYSE listed securities, and the conduct of FINRA member firms and associated persons FINRA Purpose - ANS -promote investment banking and securities business -provide medium for communication among its members -adopt, admin, and enforce rules designed to prevent fraud -promote self-discipline among members MSRB (MUNICIPAL SECURITIES REGULATORY BOARD) - ANS -regulates all matters related to the underwriting and trading of state and municipal securities -depends on other SROs for enforcement ability Federal Reserve - ANS -12 regional Fed reserve banks and hundreds of national and state banks that belong to the system -determines monetary policy and takes actions to implement policies including 1. acting as an agent of treasury 2. regulating US money supply 3. setting reserve requirements 4. supervising the printing of currency 5. clearing fund transfers Securities Investor Protection Corporation (SIPC) - ANS -a nonprofit corporation, created by Congress and subject to SEC and congressional oversight, that insures customer accounts against the financial failure of a brokerage firm -basic coverage under is no more than 500k per separate customer Federal Deposit Insurance Corporation (FDIC) - ANS -the government agency that insures customer deposits if a bank fails -accounts covered up to 250k Accredited Investor - ANS -has a net worth of 1 million or more, not including net equity -has had an annual income of 200k or more in each of the two most recent years Carrying Firm - ANS -carries customer accounts and accepts funds and securities from customers -largest broker-dealers