Finra rules 2 Study guides, Class notes & Summaries

Conduct and Practices Handbook (CPH) Exam 136 Questions with Answers Duty of care - CORRECT ANSWER This refers to obligation #3 of registered representative (RR) about acting honestly, in good faith, and in a professional manner. This is a requirement to provide advice to clients with those attributes in mind along with the proper skills and knowledge to do so. It is important to note that the standard of care provided is not a standard of perfection. RRs are usually held to this standard muc...

Regulations - FINRA Rules

SIE Exam- Unit 1 (Knowledge of Capital Markets) Questions and Answers 100% Pass What is the primary regulatory body for the securities industry? The Securities and Exchange Commission (SEC) serves as the principal regulatory authority overseeing the securities industry. Which legislation established the SEC? The Securities Exchange Act of 1934 was the legislation that established the SEC. Why is it necessary to register with the SEC? If you engage in securities transactions with cust...

Finra Rules 3.

Branch Office correct answers A location where the member conducts securities or investment banking business that is advertised as such. public appearance correct answers FINRA defines interactive real-time content on blogs, social networking sites and chat rooms as Sales literature correct answers non-interactive (static) content on blogs, social networking sites and chat rooms is defined as If a registered individual is terminated, FINRA must be notified with a U5 Form within: correct...

The Characteristics and Risk of Standardized Options is the official disclosure document that must be provided to option customers at or before account approval. This document is designed to 1. protect investors from market risk. 2. fulfill the prospectus delivery requirements of the Securities Act of 1933. 3. disclose the risk of investing in options. 4. provide useful option strategies. A) III and IV B) I, II, III, IV C) I and II D) II and III Explanation The options clearing cor...

order of events in IPO correct answers 1) Bake off 2) Win mandate 3) Sign Engagement Letter 4) File Registration Statement 5) Book build/marketing 6) Go effective (shares registered) 7) Confirm Allocations and distribute required rate of return correct answers Another name for the discount rate. Under Rule 144A, which of these investors would NOT be considered a qualified institutional buyer? correct answers A financial services firm with $130mm in assets. - QIB is defined as any ...

Form NMA correct answers Opens 180 day window for new application for b/d registration Finra responsibilities correct answers Obl/authority interpret rules, fees, compliance issues, disputes, CRD, education Form BD correct answers form used by B/D to register with SEC, SRO's. Must be updated within 30 days when out of date. Form CMA correct answers must be filed electronically when there is a change in ownership or control. Finra regulates which securities? correct answers OTC nonex...

U-5 Form correct answers Under FINRA rules, if a new employer requests a copy of Form U-5 from a new employee, he must provide it within 2 business days When a registered principal terminates his employment at a FINRA member firm.... correct answers The terminating firm must notify FINRA within 30 days And the terminating firm must provide a Form U-5 to FINRA What is NOT considered a security? correct answers Index Annuities U-4 changes correct answers Must be amended for changes to ...

STC SIE Exam Final Practice Questions and Answers Already Passed Which aspect of periodic payment variable annuities remains unchanged for the holder? A. The quantity of annuity units held by the client remains constant. B. The total number of accumulation units for the client remains fixed. C. Annuity agreements do not include beneficiaries. D. The monthly payment amount adjusts according to the inflation index. A. The quantity of annuity units held by the client remains constant. ...