Series 24 || All Correct.

Securities Act of 1933 correct answers Enacted to regulate how securities are registered, issued and distributed to the public. Primary market focused. AKA the Paper act. Securities Exchange Act of 1934 correct answers Regulated broker-dealers and how existing securities are traded in the seconda...

A syndicate headed by BD is distributing a split offering of Steel Curtain common stock. Some of the selling shareholders would like to purchase shares in the open market prior to the close of the deal. Under Rule 102 of Regulation M, selling shareholders are prohibited from this activity. correct a...

Secondary Distribution correct answers A redistribution of large block of securities held by a few owners (insiders/institutions) - NOT secondary market. May be purchased on margin Primary Distribution correct answers Cannot be purchased on margin Competitive Bidding correct answers Method of ...

Reverse Convertible Securities correct answers Higher coupon, could be forced to convert to an unrelated asset (or basket/index). Good for investors who think the underlying asset will be stable. When trading on a net basis, _____ correct answers BD acts as a principal. Markup/markdown does not n...

What is the difference between limited and full discretion with regard to an account where the representative has trading authority? correct answers Limited: the ability to buy and sell securities. Full: same as limited, but includes the ability to extract funds. What additional authorizations a...

Why was FINRA created? correct answers - Eliminate duplicate regulation by NASD and the NYSE - Strengthen the competitiveness of U.S. markets What is the mission of the SEC? correct answers Protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation FINR...

Some supervisory tasks include: correct answers 1) Supervising the activities of associated persons. 2) Ensuring all reps are qualified by the proper examination and receive their continuing education. OSJ correct answers Office of supervisory jurisdiction; Each member firm is required to design...

Hart-Scott-Rodino Act correct answers Requires that a merger or takeover transaction that exceeds certain value thresholds must be filed with the FTC and Department of Justice - Anti-Trust Department, for their review of the deal's effect on competition. A 30-day waiting period must be completed wi...

What are the two requirements for a subordinated loan? correct answers It must: - Be in writing for a specified amount of cash or securities - Have at least a one year duration; no prepayment for first year What are the three requirements for a temporary subordinated loan? correct answers - All...

Arbitration, FINRA rules require that disputes between firms, a firm and its employee, or a firm and a clearing corporation, must go to arbitration. What is the exception ? correct answers An exception exists when the dispute involves statutory discrimination claims, such as sexual harassment. The a...

SEC 201 correct answers Trading centers must restrict short sales if securities decline by 10% SEC 203 correct answers Delivery must be made 35 days of trade date SEC 204 correct answers Close out any fail to deliver postion that exists on trade settlement for any equity security SEC 604 co...

The SEC's Net Capital Rule (5): correct answers - Covers the financial responsibility of brokerdealers. - Net Capital rule is a Liquidity rule - intended to protect customers and other BDs by requiring that all BDs have sufficient liquid capital (net capital) on hand at all times. - requires BD...

Form NMA correct answers Opens 180 day window for new application for b/d registration Finra responsibilities correct answers Obl/authority interpret rules, fees, compliance issues, disputes, CRD, education Form BD correct answers form used by B/D to register with SEC, SRO's. Must be updated ...

PORTAL Market correct answers facilitates compliance with Rule 144A and private placements Simplified Arbitration correct answers heard by ONE pulbic arbitrator. just another way to say arbitration between rep and customer Sales Literature for Bonds correct answers must be filed 10 days BEFOR...