Finra rules 1 - Study guides, Class notes & Summaries

Finra Rules Test

Branch Office correct answers A location where the member conducts securities or investment banking business that is advertised as such. public appearance correct answers FINRA defines interactive real-time content on blogs, social networking sites and chat rooms as Sales literature correct answers non-interactive (static) content on blogs, social networking sites and chat rooms is defined as If a registered individual is terminated, FINRA must be notified with a U5 Form within: correct...

The Characteristics and Risk of Standardized Options is the official disclosure document that must be provided to option customers at or before account approval. This document is designed to 1. protect investors from market risk. 2. fulfill the prospectus delivery requirements of the Securities Act of 1933. 3. disclose the risk of investing in options. 4. provide useful option strategies. A) III and IV B) I, II, III, IV C) I and II D) II and III Explanation The options clearing cor...

Conduct and Practices Handbook (CPH) Exam 136 Questions with Answers Duty of care - CORRECT ANSWER This refers to obligation #3 of registered representative (RR) about acting honestly, in good faith, and in a professional manner. This is a requirement to provide advice to clients with those attributes in mind along with the proper skills and knowledge to do so. It is important to note that the standard of care provided is not a standard of perfection. RRs are usually held to this standard muc...

FINRA Rules 1.

order of events in IPO correct answers 1) Bake off 2) Win mandate 3) Sign Engagement Letter 4) File Registration Statement 5) Book build/marketing 6) Go effective (shares registered) 7) Confirm Allocations and distribute required rate of return correct answers Another name for the discount rate. Under Rule 144A, which of these investors would NOT be considered a qualified institutional buyer? correct answers A financial services firm with $130mm in assets. - QIB is defined as any ...

FINRA Rules Questions and Answers 100% correct 2023 A brokerage firm is permitted to hold fully paid customer securities if the brokerage firm segregates those positions from margin securities and places them in safekeeping Enforcement of regulations regarding trading of listed securities in the "Third Market" is performed by FINRA Compensation cannot be paid by the customer to the registered representative only the broker-dealer may pay compensation to the registered represe...

FINRA Rules Questions and Answers 100% correct 2023 The regulatory authorities for the securities markets and market participants are: (2) - the Securities and Exchange Commission - FINRA. FINRA enforces regulations for which markets? All Markets, expect for options Registered representatives may only be paid by... the brokerage firm To take a second job, under FINRA rules, a registered representative must obtain prior written approval from (the): branch manager ...

Statement of Cash Flows - Answer- Shows the change in cash balance for a period of time. Focuses only on items where cash is received, or cash is paid. Cash Flow from Operating Activities (CFO) - Answer- Cash flow that a company generates as a result of day-to-day business operations. Deals with Current Assets and Current Liabilities. Cash Flow from Investing Activities (CFI) - Answer- Cash flow that is generated from investments in long term assets. Cash Flow from Financing Activities ...

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 within 30 days when out of date. Form CMA correct answers must be filed electronically when there is a change in ownership or control. Finra regulates which securities? correct answers OTC nonex...