Securities Industry Essentials Exam
member firms who act as securities "dealers" must maintain minimum net capital of?
$100,000
for a clearing broker-dealer, what is the minimum required net capital?
$250,000
for an introducing broker-dealer, the required minimum net capital is which of the following, depending on their activities?
$5,000;$50,000
Carrying on clearing members are not allowed to expand their business operations if their net capital is deficient for?
15 consecutive business days
which of the folowing is not required to be registered with the SEC?
A Rule 147 Transaction offered exclusively in the issuer's State to investors in the state
In an IPO, often both the issuing company and the early investors offer shares to the public for the first time. this is known as?
A combined offering
Securities exempt from the Securities Act of 1933's registration requirements include which of the following?
A municipal bond issued by a US State, a municipal issued by a county or city of the united states, a bond issued by a charitable or fraternal organization
which of the following holds customers assets, receives deposits of cash and securities, and processes withdrawals of cash securities?
Clearing Broker-Dealer
fiscal policy is enacted by?
Congress
of these two,the type of broker-dealer whose minimum net capital is $100000 is a?
Dealer
to which of the following do member broker-dealers remit payment for securities purchases?
Depository Trust Company
Monetary policy is enacted by?
Federal Reserve Board
Japanese nationals working temporarily at a toyota plant in alabama are counted towards? for the US
GDP
Japanese nationals working temporarily at a toyota plant in alabama are counted towards? for Japan
GNP
Which of the following is associated with the secondary-rather then the primary-market?
Market Maker
When an issuer files exclusively with the State Securities Department where it operates, the exemption claimed under the securities act of 1933 is referred to as?
Rule 147
in which of the following types of underwriting engagements does the syndicate act as a principal by taking on the obligation to pay for any unsold securities?
Standby
an offering of which of the following securities is required to be registered under the securities act of 1933?
a stock authorized for listing on NASDAQ
a graph showing the yields of debt securities of similar credit quality across various maturities is known as which of the following?
a yield curve
in a private placement effected through Regulation D, Which of the following is accurate?
accredited investor includes a married couple with $1 million of liquid assets
which of the following accurately describes a broker-dealer's responsibility to customers concerning financial condition?
all broker-dealer's, regardless of their activities,must provide a copy of their most recent balance sheet to any customer upon request.
When a public company completes an offer of common stock several years after the IPO, this is known as?
an additional primary distribution
The Securities Act of 1933?
applies exclusively to the primary market
A principal registered as a "FINOP" can supervise which of the following activities?
back office operations, preparation and maintenance
the issuer is required to file notice with the SEC when?
completing an exempt transaction
The Securities Exchange act of 1934?
covers broad aspects of the securities market
durable goods such as refrigerators and dishwashers represent A?
cyclical industry
inflation is thought to result under which of the following scenarios?
demand for goods and services exceeds supply
which of the following industry spaces is most likely "counter Cyclical" in nature?
employment placement services
when an issuer completes a private placement, they are required to do which of the following?
file a form D- notice of exempt offering of securities, if no ppm is to be used, file a report to FINRA of this fact
which of the following must maintain a minimum net capital of $25,000
firms who engage in the sale of redeemable shares of registered investment companies
when a nations ties its currency to a fixed weight of gold, we refer to this monetary system as which of the following?
fixed exchange rate
if yields for short term, intermediate-term, and long-term treasuries are the same, the yield curve is said to be?
flat
core inflation excludes?
food and energy
liabilities of a broker dealer to customers which are subject to immediate cash payment to customers on demand, whether resulting from sales of securities, dividends, interest,deposits, or otherwise are defined by FINRA as which of the following?
free credit balance
when calculating its net capital, a broker-dealer takes its tentative net capital and subtracts?
haircuts
to stimulate the American economy, Congress could?
increase spending
which of the following fiscal policy initiatives tend to stimulate a sluggish economy?
increase spending
in a private placement offered under Regulation D, a?
maximum of 35 non accredited purchases can purchase shares
The cooling off period for an offer of securities is a?
minimum of 20 days
A true statement of the cooling off period imposed under the securities act of 1933 is?
no final sales are made until the SEC grants the issuer a release date
securities are issued on the?
primary market
In a firm commitment underwriting, syndicate members act as a?
principal for the issuer
which of the following actions taken by the "Fed" would tend to stimulate a sluggish economy?
relaxing the reserve requirement
securities are traded on the?
secondary market
deflation is sought to occur when?
supply exceeds demand
Best efforts underwriting
the issuer will accept what the underwriters raise in a?
when the securities and exchange commission establishes the effective or release date for an offer of securities,investors can accurately conclude which of the following?
the securities are listed for trading on either the NYSE or NASDAQ
The FOMC is expected to sell US Treasuries on the secondary market when pursuing a?
tight monetary policy
An American holding an ADR in a Japanese company benefits when the US Dollar, relative to the Yen?
weakens