Test 8

If a member firm hires a representative who previously worked for another member firm, the hiring firm must obtain a copy of the U-5 Form filed with CRD and review it within:

60 days of association with the hiring member firm

Under the Securities Exchange Act of 1934, an issuer can sue to recover any trading profits realized by insiders for transactions in that company's stock that were initiated and closed within:

6 Months

When can someone receive a cash dividend of a stock?

1 Business day prior to the ex-date

How can a customer sue a Broker-Dealer?

1. If that customers doesn't sign the Arbitration agreement 2. The suit must be brought within 2 years of discovery 3. But no later than 5 years after the violation occured

How long does a person remain in BrokerCheck after leaving the securities industry?

10 Years

Buying power in a day trading account is:

4 times the maintenance margin excess. 25% of the intra-day highest market value, but not less than $25,000

If there is a reverse 1:5 stock split, what happens to existing orders on the NASDAQ book on the ex date?

All open orders are canceled as a result of the reverse split.

The owner of a 529 plan changes the name of the beneficiary in November of the current year. When is the first time that the donor can change the beneficiary again?

Anytime following the plan.

Under Regulation T, what price is used for valuing securities held in margin accounts?

Closing sale

A pension fund sells securities directly to a mutual fund. This trade took place in the:

Fourth Market

Determinations made by NASDAQ MarketWatch upon review of a complaint about a clearly erroneous trade may be appealed to the:

Market Operations Review Committee

Who can give a discount to the IPO of a mutual fund?

Member to Member

Which of the following employees MUST be included in a Keogh Plan?

Must work over 1000 hours Full time seasonal work for 8 months

All of the following are quoted on CQS EXCEPT:

NASDAQ listed issues

An NYSE-listed issuer is considering floating a new issue debt offering to finance the construction of a new manufacturing facility that is planned to break ground in 9 months. The issuer wants to sell the bonds during this time window when interest rates are at a low point. In order to accomplish this goal, the issuer should file a(n):

Shelf registration under Rule 415 with the SEC

A customer purchases shares of a new issue in an intrastate offering. After 3 months, the customer sells the securities to a person residing in another state. Which statement is TRUE?

This is a violation of Rule 147 under the Securities Act of 1933 Client must hold this security for 6 months

All of the following securities must be held for 6 months, fully paid, under Rule 144 before they can be sold, EXCEPT:

control stock that is purchased in the open market

Under Rule 17a-4, broker-dealers must prepare trial balances:

monthly

SEC Rule 144 applies to all of the following EXCEPT:

sales of registered securities by an officer of the company sales of unregistered securities by an officer of the company sales of unregistered securities by a minority shareholder of the company Except: sales of registered securities by a minority shareholder of the company

Reports of suspicious activities MUST be filed with FinCEN:

within 30 calendar days of initial detection