Finra rules 2 - Study guides, Class notes & Summaries

Which of the following investments is the MOST suitable for a person who is interested in aggressive growth? 1) Common Stock 2) High-Yield Bond Fund 3) Preferred Stock 4) High-rated Bond - Answer- A: 1) Common Stock *Of the choices listed, common stock has historically provided the greatest potential for growth *Bonds and preferred stock are typically suitable for investors who are seeking income. When purchasing Treasury notes, an investor should understand: 1) Delivery is in ...

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...

CFP Exam 2024 | 665 QUESTIONS| WITH COMPLETE SOLUTIONS GRADED A+. CFP Standards of Conduct Sections (6) Correct Answer: A. Duties owed to clients. B. Fin. Planning and Application of Practice Standards C. Practice Standards for Fin. Planning Process D. Duties owed to firms/subordinates E. Duties owed to CFP Board F. Prohibition on Circumvention Section A of CFP Standards of Conduct Correct Answer: Duties owed to Client: 1. Fiduciary Duty 2. Integrity 3. Competence 4. Diligence 5. Dis...

SIE exam caril: complete study guide Q-bank answered latest spring 2023. What type of risk is unique to a specific industry, business enterprise, or investment type? - Under which of the following circumstances is an investor in a position to acquire stock? - Options- a premium - Options- strike price A customer believes that ABC's price will go up but does not have the money to buy 100 shares right now. How could the customer use options to profit from an increase in the sto...

FINRA SIE Real Exam Questions with All Correct Answers sell a specific security or securities at all times - Quotes are firm (obligated) for at least 100 shares - 100 shares = "a round lot" - Under SRO rules - Ask = offer represents a clients purchase price - Difference in this is called a "spread" - The bigger the spread is, the more the market maker makes assets under management municipalities on bond offerings and must be registered with the SEC - Typically advise...

SIE Comprehensive Final Exam (2024/2025) || With Questions & All Correct Solutions (Rated A+) SIE Comprehensive Final Exam (2024/2025) || With Questions & All Correct Solutions (Rated A+) What is a tender offer? - ANSWER - When a company offers to buy outstanding securities for cash or for cash plus other securities from its stockholders or bondholders What is a buy-back? - ANSWER - Sometimes referred to as a repurchase, is when a company buys its own outstanding securities in the open ma...

Arbitration, FINRA rules require that disputes between firms, a firm and its employee, or a firm and a clearing corporation, must go to arbitration. What is the exception ? correct answers An exception exists when the dispute involves statutory discrimination claims, such as sexual harassment. The aggrieved party (the employee) may choose mediation, or may pursue his claim in either arbitration or the court system. Arbitration, If a signed predispute arbitration clause exists, Can the custome...

Comprehensive SIE Practice Exam - Complete Solutions (Answered) The primary purpose of a syndicate desk in the context of an equity offering is to: build an order book and allocate the stock Which of the following responses describes an advantage of index funds? Lower management fees due to passive management of the fund Which of the following comparisons best describes the essential difference between a primary distribution and a secondary distribution? A primary distribution involves a sale ...

FINRA Questions and Answers 100% correct 2023 The enforcement authorities for the U.S. securities markets and market participants include: I FINRA II SEC III MSRB A. I only B. I and II C. II and III D. I, II, III The best answer is B. Both FINRA and the Securities and Exchange Commission (SEC) regulate, and have enforcement capability over, the U.S. securities markets and market participants. The Municipal Securities Rulemaking Board creates rules for municipal market participants, ...

Regulations Finra Rules Questions and Answers 100% correct 2023 All of the following statements are true regarding the U.S. securities markets EXCEPT: A FINRA has regulatory authority over the markets and market participants in the trading of all non-exempt securities B the Federal Reserve Board decides securities can be traded on margin C the Securities and Exchange Commission has regulatory authority over the securities markets and its participants D the MSRB has regulatory authority ...