SIE Checkpoints
An investor has a long position in ABC Chemical Corp. (ABCCC) with a substantial unrealized loss. Wishing to use that loss to offset realized gains, the investor sells the stock. In reinvesting the proceeds of the sale, the investor could avoid violating the wash sale rule by purchasing
A) ABCCC put options B) ABCCC call options C) ABCCC warrants D) ABCCC convertible bonds
Alan and Barbara Collins have three minor children; Dan, Ellen, and Frank. Which of the following UTMA accounts could be opened?
A) Alan and Barbara Collins as custodians for Ellen Collins B) Alan Collins as custodian for Dan and Frank Collins C) Frank Collins as custodian for Dan Collins D) Barbara Collins as custodian for Ellen Collins
An investment banker primarily engages in which of the following activities?
A) Assisting wealthy individuals manage their investment portfolios B) Helping issuers to raise capital through securities issuances C) Offering high net worth investors private banking services D) Helping banks find appropriate investments for excess reserves
Which of the following is considered a standard corporate action where adjustments made to cost basis for outstanding shares are standardized?
A) Buyback B) Takeover C) Stock split D) Merger
Which one of the following is NOT a tool used by the Federal Reserve Board (FRB) to impact the money supply?
A) Changing the prime rate B) Changing the reserve requirements C) Changing the discount rate D) Open market operations of the FOMC
A registered representative of a FINRA member firm has been accused of violating the Conduct Rules. Treatment of this case will be handled under the FINRA
A) Code of Arbitration Procedure B) Uniform Securities Act C) Uniform Practice Code D) Code of Procedure
Which of the following securities would be least likely to be issued by a corporation?
A) Common stock B) Debentures C) Preferred stock D) Call and put options
Regarding the dividend disbursement process, there are 4 dates of consequence. There are 3 that are determined by the issuing corporation's board of directors. Which is the one determined by FINRA or the exchange that the security trades on?
A) Declaration date B) Record date C) Payable date D) Ex-dividend date
A strategy that blends various types of investment in an effort to reduce nonsystematic risk is called
A) Diversification B) Conservation C) Dollar cost averaging D) Capital preservation
Producers would generally report rising inventories during which period of the business cycle?
A) Expansion B) Peak C) Contraction D) Recovery
The Investment Company Act of 1940 defined the term, "investment company." Which of the following is NOT included in that term?
A) Hedge fund B) Unit investment trust C) Face amount certificate company D) Management company
A client and his spouse own shares in the KAPCO Fund as tenants in common. He has a 60% ownership interest in the account and the spouse has the balance. If the client dies, what happens to the shares in the account?
A) His interest would automatically be transferred to the spouse B) Ownership of the shares would be determined by probate court C) 40% of the shares would belong to his spouse and the remaining balance would be distributed to his estate D) 50% of the shares would belong to his spouse and the remaining half would be distributed to his estate
Application for FINRA membership by a firm carries the applying firm's specific agreement to 1) comply with federal securities laws 2) pay dues, assessments, and other charges in the manner and amounts fixed by the association 3) pass the appropriate qualification exam(s) 4) attend a FINRA annual conference no less frequently than once every 3 years
A) I and II B) I and III C) II and IV D) II and III
Which of the following would be likely to be a red flag leading to the generation of an exception report? 1) activity in the account of a deceased person 2) a street address matching a city or zip code provided 3) a trade for 300 shares when the customer ordered 200 4) receipt of a written complaint from a customer
A) I and II B) I and III C) II and IV D) II and III
Features of the Roth IRA include 1) there are no minimum required distributions after age 70½ with a Roth IRA 2) higher contribution limits to a Roth IRA than to a traditional IRA 3) withdrawal of earnings in the Roth IRA may be made without any taxation as long as a Roth IRA has been open for a minimum of one years and the participant is age 59 4) the ability to contribute to both a Roth IRA and a traditional IRA
A) I and III B) I and IV C) II and III D) II and IV
Which 2 of the following statements regarding options are true? 1) Investors who are bullish on a stock should buy calls 2) Investors who are bullish on a stock should buy puts 3) Investors who are bearish on a stock should buy calls 4) Investors who are bearish on a stock should buy puts
A) I and III B) I and IV C) II and IV D) II and III
First Amalgamated Bank of Buffalo, a large commercial bank, is a member of the Federal Reserve System. Should the bank need to increase its reserves, it could 1) borrow from the FRB and pay the discount rate 2) borrow from the FRB and pay the federal funds rate 3) borrow from another member bank and pay the discount rate 4) borrow from another member bank and pay the federal funds rate
A) II and IV B) I and IV C) II and III D) I and III
A registered representative offers a free lunch seminar for retired seniors at which ideas for sustaining a successful financial retirement are to be discussed. Before the seminar, a poll of the attendees indicates that only one of them has ever invested in individual stocks. Therefore, it would be appropriate for the presenter to discuss 1) annuities 2) hedging strategies using options 3) mutual funds with an income objective 4) short selling as a way of profiting from market corrections
A) II and IV B) III and IV C) I and II D) I and III
An investor can take advantage of intraday price changes due to normal market forces when investing in 1)closed-end funds 2)exchange-traded funds 3)hedge funds 4)open-end funds
A) III and IV B) I and IV C) II and III D) I and II
Under Rule 144, which of the following sales are subject to volume limitations on the number of shares sold? 1) Control person selling registered stock held for 1 year 2) Control person selling restricted stock held for 2 years 3) Non-affiliate selling registered stock held for 1 month 4) Non-affiliate selling restricted stock held for more than 6 months
A) III and IV B) I and IV C) II and III D) I and II
Investing in securities entails a large number of potential risks. Diversifying one's portfolio could have the effect of reducing which of the following risks?
A) Inflation risk B) Business risk C) Interest rate risk D) Market risk
The enforcement of MSRB rules upon broker-dealers is performed by
A) NYSE B) FINRA C) OCC D) MSRB
Which type of DPP would be most likely to enable the investor to claim a deduction for depletion?
A) Oil and gas exploratory program B) Real estate limited partnership C) Oil and gas income program D) Equipment leasing
Which of the following statements regarding a 529 plans is correct?
A) One person can be both beneficiary and owner B) Contributions are limited to $2,000 annually C) The assets in the plan belong to the beneficiary D) The beneficiary must be below age 18
Which of the following records must be kept by a broker-dealer for a minimum of 4 years?
A) Partnership articles if the broker-dealer is organized as a partnership B) Blotters C) Customer confirmations D) Customer complaint letters
A customer was charged a $35 commission on a recent stock trade. The firm acted in what capacity on this transaction?
A) Principal B) Dealer C) Agency D) Selling Group Member
The Federal Reserve is concerned that the economy is slowing. Which of the following actions would the Fed most likely engage in?
A) Raise the margin requirements under Reg. T B) Double the reserve requirements for member banks C) Engage in open market sales of T-Bills D) Pursue an easy money policy to lower interest rates
Which of the following types of broker-dealer would most likely have correspondent firms?
A) Self-clearing B) Fully disclosed C) Introducing D) Market maker
The Securities Exchange Act of 1934 allows for the creation of self-regulatory organizations (SROs) to write and in some instances enforce compliance by its member firms and persons associated with its member firms. Which of the following is NOT an SRO registered with the Securities Exchange Commission (SEC)?
A) The CBOE B) FINRA C) The DTC D) The MSRB
The ABC Chemical Corporation wishes to advertise its upcoming offering of common stock in a tombstone advertisement that they, the issuer, will place. When placing the tombstone advertisement, which of the following would be least likely to appear?
A) The names of the investment bankers underwriting the issue B) The total number of shares being offered C) The name of the issuer D) The expected price range of the offering
A client phones his registered representative in September and informs the rep that he will studying abroad in Europe for the balance of the year. The client wants the firm to hold his mail. What action should the rep take?
A) The rep must instruct the client that the request must be made in writing. B) The rep should send duplicates to Paris since under SEC customer protection rules, mail cannot be held. C) The rep should temporarily change the client's address to a secure P.O. box to prevent the theft of his mail. D) The rep should have all mail forwarded directly to the branch to protect against identity theft.
Which of the following statements regarding Treasury bills is correct?
A) Treasury bills are the only Treasury security issued without a stated interest rate B) They have the highest interest rate risk of all Treasury securities C) They are usually issued at a slight premium to par value D) They are issued with initial maturities of 3, 12, 24, and 50 weeks
Which of the following instruments is not backed by the full faith and credit of the U.S. government?
A) Treasury receipts B) Treasury bills C) Treasury bonds D) Treasury STRIPS
Which of the following is the most appropriate action for a registered representative to take after receiving a written complaint letter from a client?
A) Turn the letter over to the representative's supervisor. B) Place a telephone call to the client to resolve the issue. C) Forward the complaint to FINRA and maintain a copy in the representative's records. D) Commence a thorough investigation and provide a report of the results to the representative's employer.
Standardization of transaction settlements, good delivery of securities, ex-dividend dates and trade confirmations is addressed in the
A) Uniform Practice Code (UPC) B) Conduct rules C) Code of Procedure (COP) D) Code of arbitration procedures
A business entity that performs the function of receiving and delivering payments and securities on behalf of both parties to a securities transaction is called
A) a clearing agency B) a broker-dealer C) a depository D) a transfer agent
A customer has an account with a broker-dealer who provides a group of services, such as asset allocation, portfolio management, trade executions, and administration, for a single fee. This is known as
A) a discretionary account B) a wrap account C) a commission-based account D) a margin account
A registered representative handling a fiduciary account must be aware of the fact that
A) a fiduciary may share in an account's profits or may charge a reasonable fee for services, but not both B) margin account trading is permitted once the regular margin account forms have been received from the fiduciary C) account performance will be enhanced by the addition of speculative positions D) investment decisions must be made in accordance with the prudent investor rule
An institutional customer, such as a hedge fund, utilizes the services of a broker-dealer who provides custody of securities as well as other back-office functions while allowing the customer to establish relationships with other broker-dealers for the purpose of executing orders. This account would be known as
A) a self-clearing account B) a clearing account C) a prime account D) a fully disclosed account
RJN common stock is currently listed on the New York Stock Exchange. Poor operating results over the past several years have led to a sharp decline in RJN's stock price putting the company at risk for failing to meet the minimum price requirements to remain listed on the NYSE. The most likely corporate action to be taken to preserve the listing would be
A) a stock dividend B) reducing staff C) increasing earnings D) a reverse split
Some securities are sold without a physical certificate. In those instances, evidence of ownership is kept on record at a central agency. One example of those securities would be
A) all government securities issued by the U.S. Treasury B) all equity securities issued by corporations C) all securities held in fiduciary accounts D) all debt securities issued by corporations
Under rules found in the Investment Advisers Act of 1940, if a political contribution to certain elected officials or candidates is made,
A) an adviser may not provide advisory services to any government they represent for a fee until the next election B) an adviser may not provide advisory services to any government they represent for a fee for 3 years C) an adviser must suspend providing advisory services to any government they represent until it is determined if the election campaign was successful or not D) an adviser may not provide advisory services to any government they represent for a fee for 2 years
All of the following would decrease the U.S. balance of payments deficit EXCEPT
A) an increase in exports of domestic goods from the United States B) a decrease in dividend payments by U.S. companies to foreign investors C) a decrease in purchases of U.S. securities by foreign investors D) a decrease in imports of foreign goods into the United States
A broker-dealer that concentrated its business efforts on proprietary trading would most likely be functioning as
A) an investment adviser B) an underwriter C) an investment banker D) a market maker
Both exempt and nonexempt securities have full disclosure documents available to the investing public so that an informed investment decision can be made. The document associated with exempt securities would be
A) an official statement or registration statement B) a prospectus or disclosure document C) an official statement or offering circular D) a prospectus or offering circular
Each of the following might be considered misleading or statements omitting necessary information EXCEPT
A) an options chart for calls showing unlimited gain potential and the possibility of losing all of one's investment B) an advertisement claiming that a BD's customers consistently do much better than any other BD's customers in terms of profitability C) an advertisement promising the greatest commission potential of any BD in the securities industry for first year representatives D) a claim that a degree in medicine qualifies a RR to make recommendations on all stocks having to do with pharmaceuticals or medical procedure patents
An investor has her registered representative enter a sell stop limit order at 50. Following the order entry, trades occur at 52, 50, 49, 51, and 53. The investor would receive
A) 50 B) 51 C) 53 D) 49
Which of the following transactions represents the greatest potential risk to an investment banker?
A) A spin-off B) A stock split C) A firm commitment offering D) A best efforts IPO
Which of the following securities would likely provide the greatest potential for capital appreciation?
A) A U.S. Treasury STRIP B) A preferred stock C) A common stock D) A convertible bond
A broker-dealer may extend credit under Reg. T for which of the following transactions?
A) A mutual fund purchase B) The purchase of an IPO that went public 25 days ago C) A Closed-end investment company purchased on the NYSE D) A variable annuity purchase
Which of the following positions/actions would cover a client who has shorted a call?
A) A short stock position B) A long stock position C) Buying a put with a higher strike price D) Buying a call that expires sooner
A new client of the member firm has just opened a margin account. After account approval, the client's initial trade is an order to purchase 100 shares of LMN common stock at $25. With Regulation T at 50%, in order to be in compliance with all regulations, the client would need to deposit
A) $1,250 B) $2,500 C) $2,000 D) $1,000
In 2011, RST Corp. had both common stock and $100 par value 4% and noncumulative preferred stock outstanding. The preferred, like the common stock, paid dividends on a quarterly basis. Because of financial difficulties, the company stopped paying dividends after 2011. After resolving its problems in 2015, the company resumed dividend payments in 2016. Before paying the first quarterly common stock dividend that year, the company would have to pay a quarterly dividend to the preferred stockholders of
A) $17.00 B) $1.00 C) $4.00 D) $20.00
An individual is defined by the SEC as an accredited investor if the individual has a net worth of
A) $5 million or more, or has had an annual income of $500,000 or more in each of the 2 most recent years B) Greater than $1 million, or has had an annual income of greater than $200,000 in each of the 2 most recent years C) $10 million or more, or has had an annual income of $100,000 or more in each of the 5 most recent years D) $3 million or more, or has had an annual income of $200,000 or more in each of the 5 most recent years
An investor shorts 2 DEF January 55 puts at a premium of 2 each when the market price of DEF is 56.25. What is the investor's maximum potential loss?
A) $5,425 B) $10,600 C) $5,300 D) Unlimited
ABC Corporation has filed a registration statement with the SEC for the sale of 1 million shares of common stock. This will be the first public offering for ABC. Twelve days into the cooling-off period, ABC receives a deficiency letter from the SEC requesting further information. Five days later, ABC submits the required corrections. Assuming no other problems, this issue should become effective in
A) 15 days B) 20 days C) 8 days D) 3 days
A broker-dealer has hired an individual for the position of registered representative. The individual is struggling to pass the necessary qualification exam and has failed 4 times. After that fourth failure, the applicant faces a waiting period of
A) 180 days B) 60 days C) 30 days D) 90 days
A client entering a sell limit order at 43 would accept which of the following trades?
A) 44 B) 42 C) 42.50 D) 42.90
GEMCO Oil and Gas, listed on the NYSE, wishing to sell up to $300 million of convertible debt as market conditions permit, files a shelf registration statement with the SEC. Which of the following statements are TRUE?1) For securities offered via a shelf registration, a supplemental prospectus must be filed with the SEC before each sale. 2) The registration statement is effective upon completion of the cooling-off period. 3) Shelf registration allows the issuer to sell portions of a registered shelf offering over a 2-year period without having to reregister the security. 4) Shelf registration allows the issuer to sell portions of a registered shelf offering over a 3-year period without having to reregister the security.
A) I and III B) II and III C) II and IV D) I and IV
It would be reasonable to expect an increase in exports from the United States if 1) the dollar strengthened against the euro 2) the yen strengthened against the dollar 3) the Swiss franc weakened against the dollar 4) the dollar weakened against the British pound
A) I and III B) II and III C) II and IV D) I and IV
An investor receives a quote of 32—32.15 for XYZ common stock. 1)This means that purchasing the stock will cost $32 per share 2) purchasing the stock will cost $32.15 per share 3) the spread is $.15 4) the investor will receive $32.15 per share if selling
A) I and III B) III and IV C) I and IV D) II and III
Which of the following trading strategies are employed by hedge funds that are generally prohibited to mutual funds? Limiting their investments to a narrow group of securities Using borrowed money to purchase portfolio securities Taking long positions in speculative stocks Taking short positions in NYSE listed stocks
A) I and IV B) I and III C) II and III D) II and IV
Examples of systematic risk would include 1) business risk 2) inflation risk 3) market risk 4) regulatory risk
A) I and IV B) II and III C) I and II D) III and IV
Two reasons why a municipality would probably have an easier time issuing revenue bonds instead of general obligation bonds is that 1) revenue bonds do not require voter approval 2) revenue bonds generally have a higher rating than GO bonds from the same issuer 3) revenue bonds are not constrained by a statutory debt limit 4) revenue bonds are supported by ad valorem taxes
A) I and IV B) II and III C) I and III D) II and IV
Violations of the FINRA Conduct Rules would include 1) engaging in a private securities transaction without compensation with an immediate family member without notification to the employing broker-dealer 2) parking a license for a former registered principal 3) a registered representative accepting a complimentary registration at a seminar presented by a mutual fund sponsor at an exclusive offshore island resort 4) a member firm waiting 30 days after termination to provide the terminated employee with a copy of the Form U-5
A) I and IV B) II and IV C) I and II D) II and III
An investor purchased 100 shares of MJS on June 19, 2015 at a price of $40 per share. On June 1, 2016, MJS declared a 25% stock dividend. On July 1, 2016, the investor sold 50 shares of the MJS at $50 per share. Which of the following statements are correct? 1) The adjusted cost basis of the shares is $30 2) The adjusted cost basis of the shares is $32 3) There is a short-term capital gain on 25 shares, long-term gain on the other 25 shares 4) There is a long-term capital gain on all of the shares sold
A) I and IV B) II and IV C) II and III D) I and III
The SEC has established rules regarding delivery of a prospectus when a secondary market transaction occurs after the effective date. Which of the following statements comply with those rules for initial (IPO) and additional (APO) public offerings? 1) An IPO of a stock to be listed on the NYSE requires delivery for a period of 25 days. 2) An IPO of a stock that will not be listed nor quoted over Nasdaq requires delivery for a period of 40 days. 3) An APO of a stock listed on the NYSE requires delivery for a period of 25 days. 4) An APO of a stock that will not be listed nor quoted over Nasdaq requires delivery for a period of 40 days.
A) II and III B) I and II C) I and IV D) III and IV
Five years ago, Tom, a resident of State A, was convicted of driving under the influence (DUI). At the time, the conviction was considered a misdemeanor. Last year, State A's legislature made DUI a felony. When filing a Form U-4 for registration with a member firm, Tom must indicate that 1)he has been convicted of a felony 2) Tom would not have to list the conviction 3) Tom would be subject to statutory disqualification 4) Tom would not be subject to statutory disqualification
A) II and III B) I and III C) I and IV D) II and IV
The Securities Exchange Act of 1934 required the registration of broker-dealers initial public offerings (IPOs) margin accounts stock exchanges
A) II and III B) I and IV C) I and II D) III and IV
An investor considering the differences between purchasing open-end investment company shares or ETFs with a similar objective should understand that 1) each time an investor purchases and sells ETFs, there is a commission 2) the operating expense ratio for an ETF is generally very high because they usually track indexes such as the S&P 500 3) it is possible that an investor liquidating ETF holdings will receive less than the NAV per share 4) the margin requirements to purchase an ETF are higher than that for an open-end investment company
A) II and III B) I and IV C) I and III D) II and IV
With regards to fiscal policy, it would be CORRECT to state that 1) fiscal policy is considered the most efficient means to solve short-term economic problems 2) fiscal policy is not considered the most efficient means to solve short-term economic problems 3) fiscal policy refers to governmental budget decisions enacted by our president and Congress 4) fiscal policy refers to governmental budget decisions enacted by our president and the cabinet
A) II and IV B) I and III C) I and IV D) II and III
A customer of a broker-dealer sells 300 shares of stock at $50 per share and leaves the proceeds in the account. This would be considered 1) a free credit balance 2) a debit balance 3) available to the customer on demand 4) funds that must be reinvested within 30 days
A) II and IV B) I and III C) II and III D) I and IV
After working for several years as a retail sales manager, Marsha decided to seek employment at a FINRA member firm. Marsha was successful on her first attempt on the qualification exam and during her first 3 years as a registered representative, opened a number of accounts. During a market correction, her commission income fell and she decided to devote her time on weekends to a part time retail sales position. Under FINRA rules regarding outside business activity (OBA), Marsha must
A) choose her occupation; she cannot do both of these simultaneously B) receive approval from the FINRA district office C) provide prior written notice to and receive written permission from the employing member D) provide prior written notice to the employing member firm
The investment return of a variable annuity comes from
A) computing the excess of the premiums received over the mortality experience B) the performance of the selected sub-accounts within the separate account C) the assumed rate stated in the policy documents D) the insurance company's general account
There are rules regarding customer statements. All of the following statements reflect those rules EXCEPT
A) customer statements must be sent no less frequently than quarterly B) activity limited to stock splits or stock dividends only do not require monthly statements be sent C) customers must be alerted to report any inaccuracies or discrepancies promptly D) customer statements containing penny stocks must be sent monthly, even if no activity occurred in the account
Most economists would agree that rising employment would be found during periods of
A) deflation B) stagnation C) inflation D) stagflation
An applicant completing a Form U-4 would NOT be required to list
A) employment history for the past 10 years B) residential history for the past 10 years C) legal name and any aliases used D) date of birth
Included in the term, equity security, would be
A) equipment trust certificates B) collateral trust certificates C) participating preferred D) debentures
All of the following statements regarding penny stocks are true EXCEPT
A) if an account holds penny stocks, broker/dealers must provide a monthly account statement to the customer B) the SEC rules require that prospects, before their initial transaction in a penny stock, be given a copy of a risk disclosure document C) penny stock rules apply to both solicited and unsolicited transactions D) established customers of the firm need not sign a suitability statement
A municipal finance professional (MFP) would have duties
A) including issuing and underwriting municipal bonds B) limited to giving financial advice regarding new issue municipal bonds C) limited to sales of municipal bonds and other securities D) including underwriting, sales and trading of municipal bonds
In most cases, the majority of private placements are sold to
A) institutional investors B) general public investors C) investment bankers D) individuals who meet the definition of accredited investor
A suspicious activity report would probably be triggered if the broker-dealer suspects that a transaction involves funds derived from illegal activity and
A) involves more than $5,000 in funds or other assets B) involves at least $10,000 in funds or other assets C) involves more than $10,000 in funds or other assets D) involves at least $5,000 in funds or other assets
Issuers are not required by the Securities Exchange Commission (SEC) to give notice of corporate actions to shareholders for such actions as
A) issuance of warrants B) dividends on the issuer's common stock C) interest on the issuer's bonds D) a reverse split
One characteristic of an open-end investment company that distinguishes it from a closed-end one is that
A) it may avoid taxation by distributing all of its net investment income to shareholders B) there are a wide variety of objectives available for investors to select from C) it may be either diversified or non-diversified D) there is a continuous public offering
A FINRA member broker-dealer has a new hire with the sole responsibility of training associated persons. She will not have any dealings with the firm's customers. In order to hold this position, the new hire
A) need not be registered as this job is strictly administrative B) would only have to register as a registered representative if she dealt with customers C) must register as a principal D) must only register as a registered representative
A requirement placed by the SEC upon applicants for registration as registered representatives of a broker-dealer that is designed to lessen the possibility that an individual's criminal past might not have been discovered by the employing firm is
A) obtaining a credit report from at least 2 recognized credit reporting agencies B) filing of a fingerprint card with the U.S. Attorney General C) filing of a fingerprint card with the SEC D) a personal interview at the nearest FINRA district office
The Options Clearing Corporation (OCC) assigns exercise notices to broker/dealers with short positions
A) on a FIFO basis B) using any method that is considered fair and reasonable C) on a LIFO basis D) using a random selection method
An investor owns 300 shares of a Silicon Valley high tech firm whose shares are quoted on the Nasdaq Stock Market. A month prior to the company's annual meeting, the broker-dealer holding the stock in street name forwarded the voting proxy to the client. As it happens, the investor had to be at a business meeting in San Francisco that ended the day before the annual meeting. If the investor took advantage of the proximity to attend the meeting
A) only those with reservations would be able to attend the meeting so the proxy vote would stand B) only the broker-dealer could rescind the proxy and permit the investor to vote at the meeting C) the voting proxy would be revoked and only the vote at the meeting would count D) the voting proxy would stand because it would have already been counted
All of the following are debt security maturity schedules EXCEPT
A) term B) balloon C) series D) serial
The portfolio manager of a pension plan is well known as a fan of the local NFL football team. The branch manager of a FINRA member firm who has been trying to secure a portion of the plan's investment account owns a luxury box at the stadium. FINRA's Conduct Rules would permit
A) the branch manager to invite the portfolio manager to accompany him to a game of his choice B) the branch manager to offer the portfolio manager 2 of the seats in the box for the entire season C) the branch manager to offer tickets to the portfolio manager only if the value did not exceed $100 D) transferring the ownership of the rights to the luxury box to the portfolio manager if at least 30% of the portfolio is transferred to the branch manager's firm
It is generally agreed that the most volatile interest rate in the U.S. economy is
A) the call money rate B) the prime rate C) the discount rate D) the fed funds rate
When a registered person terminates from a FINRA member firm, filing form U-5 is the responsibility of
A) the member firm B) the registered person C) the depository trust company D) FINRA
If a registered person fails to complete the regulatory element within the prescribed period,
A) the person must not be present on the firm's premises until the requirements of the program are met B) the member firm must suspend the person until the requirements of the program are met C) FINRA will deactivate that person's registration until the requirements of the program are met D) FINRA will normally grant a 30-day extension of time
A corporation seeking to raise funds in order to expand its manufacturing capacity would do so in
A) the secondary market B) the capital market C) the currency market D) the funding market
Persons who enter trades at or near the same time in the same security as a person who has inside information are known as
A) tippers B) tippees C) informers D) contemporaneous traders
