SIE 1.2
Which of the following would be a secondary market transaction?
A broker-dealer arranges for a customer to purchase mutual fund shares
A broker-dealer that accepts funds and securities from customers and its correspondent member firms would most likely be which of the following?
A carrying firm
An institution or a person responsible for making all investment, management, and distribution decisions in an account maintained in the best interests of another is known as
A fully disclosed firm.
All of the following are associated with being a carrying firm except
Accepting customer funds.
A market maker
Acts as an agent to buy and sell for public customers who will hold their securities.
All of the following are true regarding the term market except
All of the following are true regarding the term market except
Anyone who, as part of their business, gives investment advice for compensation must register as
Anyone who, as part of their business, gives investment advice for compensation must register as
BigBox Stores, Inc., common stock is a New York Stock Exchange-listed security. If an over-the-counter dealer makes a market in the stock, this activity is taking place in which market center?
C) Exchanges
All of the following are benefits of using a prime broker except
Consolidation] of records.
Correspondent firms would be likely to have relationships with which of the following types of broker-dealers?
Fully disclosed
A firm designated as self-clearing can act in a back-office capacity for an introducing firm. not act in a back-office capacity for an introducing firm. clear and settle transactions executed by other firms. only clear transactions it executed.
I and III
Trading in the over-the-counter market occurs between whom?
Institutions
Which of the following is true regarding a member firm operating under Financial Industry Regulatory Authority (FINRA) membership or the membership of another self-regulatory organization (SRO)?
Member firms are required to be full-service broker-dealers.
A broker-dealer that executes trades and settles transactions for another broker-dealer is called
a fully disclosed firm.
An institution or a person responsible for making all investment, management, and distribution decisions in an account maintained in the best interests of another who has been legally appointed to provide these services is best described as
a prime broker.
A firm that functions for the purpose of receiving and delivering payments and securities on behalf of both buyer and seller in a securities transaction is
a transfer agent.
When a firm engages in proprietary trading, buying into and selling out of its own inventory for profit, it is acting as
an agent.
A clearing corporation agent or depository for securities transactions
can be a bank or corporation only if they are also a broker-dealer.
All of the following are features of the exchanges except
designated market makers maintaining liquidity
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
fully-disclosed account.
A fully disclosed broker-dealer
is like a clearing agent in that it can take custody of funds and securities.
When investors buy and sell securities to and from one another, these transactions occur
on exchanges only.
All of the following are market centers within the secondary market except
over-the-counter.
Great Plains Securities, an OTC market maker, holds inventory and provides liquidity for Modulux Homes, an NYSE listed company. This is an example of
the primary market
