Under finra rules Study guides, Class notes & Summaries

SIE Study Guide Questions and Answers Rated A+ Section 1: Knowledge of Capital Markets What is the mission of the SEC? To safeguard investors, uphold fair and efficient markets, and aid in the formation of capital When was the SEC founded? It was established by Congress in 1934 Under whose jurisdiction does the SEC fall? It operates under the US federal government What powers does the SEC possess? It enforces federal securities laws and formulates regulations for t...

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...

An open-end management company is a: A. Mutual fund B. Publicly traded fund C. Fixed unit investment trust D. Real estate investment trust - Answer- A. Mutual fund 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

Statement of Cash Flows - Answer- Shows the change in cash balance for a period of time. Focuses only on items where cash is received, or cash is paid. Cash Flow from Operating Activities (CFO) - Answer- Cash flow that a company generates as a result of day-to-day business operations. Deals with Current Assets and Current Liabilities. Cash Flow from Investing Activities (CFI) - Answer- Cash flow that is generated from investments in long term assets. Cash Flow from Financing Activities ...

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...

What is the U.S. Government agency that has enforcement authority over the U.S. securities markets? - 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 participants, b...

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...

FINRA Website SIE Practice Exam Questions & Answers. 2023/2024 updates ers, the firm agrees to repurchase the shares at no less than the original cales price. Such agreements are: A. Prohibited as fraudulent and manipulative B. Permissible if the securities are deposite into escrow C. Prohibited unless the firm immediately sets aside funds for the repurchase D. Permissible if the customers retain the right to sell the securities into the open market - A. Prohibited as fraudulent and...

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...

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 ...