Under finra rules Study guides, Class notes & Summaries

FINRA fees paid by a member firm are based on which of the following? correct answers Number of registered representatives employed.Number of branch offices registered with FINRA. All of the following actions would require amending the Form U-4 EXCEPT A) change of registration status B) change of residence address C) conviction for failure to file an income tax return D) change of marital status correct answers D) change of marital status A member firm files Form U-5 with FINRA for...

A registered representative is preparing a PowerPoint slide presentation, to be delivered in a live seminar, for a group of invited institutional clients. To use the slides, they may have to be A) reviewed by a principal of the broker-dealer. B) submitted to the SEC for review and approval. C) submitted to both FINRA and the SEC for preuse approval. D) approved by FINRA in writing. correct answers A Communications material that is intended for use with institutional customers only need ...

A corporate profit-sharing plan must be set up under A) a beneficial ownership. B) an administrator. C) a trust. D) a conservatorship. correct answers trust A customer opens an account, and payment and delivery instructions are established. Beyond the opening of the account, these instructions may A) be changed at any time for all transactions going forward. B) be changed for individual transactions, or going forward, for all transactions. C) not be changed unless a new account is esta...

What is the U.S. Government agency that has enforcement authority over the U.S. securities markets? correct answer: SEC Both FINRA and the Securities and Exchange Commission (SEC) regulate and have enforcement capability over the U.S. securities markets and market participants. However, the SEC is a government agency, while FINRA is an SRO - a self-regulatory organization under SEC oversight. The Municipal Securities Rulemaking Board is another SRO that creates rules for municipal market ...

Registered representatives may be compensated based on which of the following? I Trading commissions paid by the brokerage firm to the representative II Trading commissions paid by the customer to the representative III Salary paid by the brokerage firm to the representative IV Salary paid by the customer to the representative I and III Compensation cannot be paid by the customer to the registered representative. Only the broker-dealer may pay compensation to the registered representati...

What is the maximum amount of SIPC coverage available to each separate customer? correct answer: $500,000 including up to $250,000 in cash If a customer purchases securities and does not settle the account 4 business days, what should the brokerage firm do first? correct answer: Ask for an extension of time from the SRO or cancel the trade and sell off the purchased securities When must a customer who purchases securities in a cash or margin account pay for the securities? correct answer...

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 ...

Securities Industry Essentials Exam 2 | With Questions & Answers (Rated A+) Securities Industry Essentials Exam 2 | With Questions & Answers (Rated A+) When a broker-dealer charges a commission on a securities transaction, it has acted as - ANSWER - an agent Under FINRA rules, non-cash compensation connected with the sale of variable contracts doesn't include - ANSWER - commissions A registered representative discussing a 529 college savings plan should explain _________ to the custom...

In a period of low inflation and economic recession, the Federal Reserve is expected to take which of the following actions? A) Decrease Taxes B) Require banks to increase reserve C) Buy bonds in the open market : Buy bonds in the open market Under FINRA rules which of the following activities by a registered representative requires written notification to her firm? A) Gambling resulting in winnings in excess of $10,000 B) Driving part time for a transportation network company on w...

MASTERY EXAM 1 questions and answers correct 1.An open-end management company is a: A. mutual fund b. publicly traded fund C. fixed unit investment trust D. real estate investment trust - A. mutual fund 2.To impose the maximum sales charge, under FINRA rules, mutual funds must offer investors all of the following benefits EXCEPT: A. Breakpoints B. Plan Completion Insurance C. Rights of Accumulation D. Letter of Intent - B. 3.Plan Completion Insurance A closed-end managemen...