Series 24 || All Answers Are Correct 100%.
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 aggrieved party (the employee) may choose mediation, or may pursue his claim
in either arbitration or the court system.
Arbitration, If a signed predispute arbitration clause exists, Can the customer may require that all
claims in the complaint be settled through arbitration? correct answers Yes, , the member may
compel arbitration on those items. However, if customer requests that all items be settled through
arbitration, even those not included in the predispute arbitration clause, member must agree to
arbitrate all items. There is no a predispute clause waiver. Mediation is not compulsory for either
party. The process is voluntary
OTCBB correct answers Real time system for MMks to update quotes, 8am to 8pm. Exception
DPPs, 2 times a day 8:30-9:30 and 12-2:30
Arbitration, what is the amount for simplified arbitration ? correct answers For both industry
arbitration and customer arbitration, disputes of no more than $50,000. As with regular
arbitration, simplified arbitration does not allow appeals. The decision of the single arbitrator is
FINAL
ADF Market Maker Excuse to Withdrawal (5 and up to 60) correct answers 5 business days may
be granted for circumstances beyond the market maker's control ( storm or a sudden illness).
up to 60 days may be granted for legal or regulatory reasons, documentation is provided and the
condition is not permanent in nature. Holidays and clearing contract circumstances.
If Market Value in a long margin account decreases, the equity will _______amount. When the
market value in a short margin account increases, the equity will ______________ amount.
correct answers .....decline by an equal amount. .....decrease by a corresponding
Dissenting limited partners correct answers Investors who vote against the rollup transaction
The value assigned in the rollup would be considered fair and reasonable if correct answers
Investors in the new entity receive similar voting rights and have the power to remove the new
general partner
Dissenting limited partners must receive compensation that is based on an appraisal of the
partnership's assets conducted by an independent appraiser, rather than by the general partners or
an affiliate.
The general partners must use the evaluation standards contained in the limited partnership
agreement to value their interests (if applicable)
and .....employ an independent THIRD PARTY to count limited partners' votes.
, Investors in the new entity should have VOTING RIGHTS that are SIMILAR to the ones that
they had in the original entity, including the right to REMOVE the general partner, or board of
directors
A reduction of the credit rating of AN ISSUER RAISING FUNDS through debentures will
increase _____ and decrease_______ correct answers increase the yield of a new issue of bonds,
and reduce the price of the issue.
A steepening (not a flattening) of the yield curve is an indication of _________ long-term
interest rates. correct answers higher
An infusion of money supply indicates an easing of credit conditions. ______ yields would be
expected. correct answers Lower
Higher anticipated demand from investors would likely _____ the bond's yield, and______the
bond's price correct answers anticipated demand from investors would likely LOWER the bond's
____, and INCREASE the _____
Purchaser representative correct answers A person who represents potential NON Accredited
purchasers who are solicited to buy securities under Regulation D (SEC Rules 501-508).
A PURCHASER REPRESENTATIVE may not be an _____, _____, _____, or _______ of the
issuer UNLESS ____________________. The purchaser representative may not own ___% OR
MORE of the stock of the issuer and must be knowledgeable and experienced in financial and
business matters. correct answers MAY not be affiliate, director, officer, or employee OF THE
ISSUER
UNLESS related to the purchaser by blood, marriage, or adoption
10% or more
The potential purchaser must designate an individual to be a PURCHASER
REPRESENTATIVE in______ for each individual offering.
_________Approval to represent the potential purchaser for all Regulation D offerings is NOT
PERMITTED correct answers Writing
BLANKED APPROVAL
A corporation is issuing 5,000,000 shares of stock at a public Offering price of $13 per share.
The manager of the underwriting syndicate receives $0.15 per share. The syndicate members'
compensation is $0.65 per share for each share they sell. The selling group's concession is $0.40
per share for each share they sell. The syndicate is allocated 4,000,000 shares and the selling
group is allocated 1,000,000 shares. What amount will the issuer receive? correct answers The
issuer will receive $12.20 per share ($13.00 offering price minus $0.80 underwriting spread) for
a total of $61,000,000 ($12.20 x 5,000,000 shares).
A corporation is issuing 5,000,000 shares of stock at a public Offering price of $13 per share.
The manager of the underwriting syndicate receives $0.15 per share. The syndicate members'
