Exam (elaborations)
Series 3 Regulations Questions and answers certified 2024
- Course
- Institution
Series 3 Regulations Questions and answers certified 2024
[Show more]
Content preview
Series 3 Regulations QuestionsMembership in the National Futures Association is mandatory for all of the
following EXCEPT:
a. Futures commission merchants
b. Commodity pool operators
c. Commodity trading advisors
d. Banks - correct answer ✔(D) The NFA membership is open to but not
required for exchanges, banks and commodity
related business firms.
Every employee of an NFA member that is
required to register with the CFTC must become an NFA associate.
a. True
b. False - correct answer ✔(A) Every employee of an NFA member firm who
is required to register with the CFTC, must
become an NFA associate.
Every exchange that trades commodity
contracts and is registered with the CFTC is required to register floor traders
and floor brokers with the NFA as associates.
a. True
b. False - correct answer ✔(B) Floor traders and floor brokers are not
required to register as NFA associates because they are subject to exchange
regulations.
A person that is not an NFA member is
, prevented from dealing with the public if that business involves buying or
selling futures contracts for customers.
a. True
b. False - correct answer ✔(A) Any person that is not an NFA member is
prevented from dealing with the public in business that involves buying or
selling futures contracts for customers because they will be unable to obtain
execution of their orders.
Advertising and promotional material
would include all of the following EXCEPT:
a. Newspaper promotions
b. Pre-set telephone conversations to solicit business
c. Recruitments for new employees
d. Discussing an investment recom-mendation with a client - correct answer
✔(D) Advertising and promotional material includes employment advertising,
newspapers and pre-set telephone conversations to solicit business but it
does not cover discussing an investment recommendation with a client.
The Office of Compliance of the NFA
conducts a full scope audit of members:
a. Quarterly
b. Semi-annually
c. Annually
d. Every two years - correct answer ✔(D) The NFA requires a "full scope"
audit every two years. This audit must cover every facet of the firm's business
activities.
An infraction of NFA rules is reported to the:
a. Regional NFA Business Conduct Committee
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller LEWISSHAWN55. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $13.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
81989 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now