If the information on a registered representative's U4 becomes inaccurate, the representative typically must update their U4:
Within 30 days
When an employee does something to disqualify himself from membership, the U4 form must be amended:
within 10 days.
Which of the following gifts given to a customer would be a securities violation for a registered person?
A. Taking a customer to a football game with tickets worth $110 a piece
B. Giving a customer two $75 tickets to a musical paid for by the firm
C. Per
B. Giving a customer two $75 tickets to a musical paid for by the firm
FINRA requires that members investigate a prospective employee's character and fitness by reviewing information from the candidate's former employer, available on
FINRA Form U-5 and CFTC Form 8-T, if applicable
A broker/dealer receives 1,000,000 shares of a "hot" issue to be distributed to its clients. The broker/dealer asks the underwriter if it can retain 50,000 shares for its own account. What must the underwriter's answer be?
No, because broker/dealers are required to make a full offering of any and all securities that underwriters allot to them to sell. Broker/dealers must make a genuine offering of all securities that are given to them to sell. They cannot retain any for the
Who may conduct independent testing of an anti-money laundering program?
I. A person performing the functions being tested
II. The designated anti-money laundering compliance person
III. A person with working knowledge of the Bank Secrecy Act and its requ
Under FINRA rules, a person with working knowledge of the Bank Secrecy Act and its requirements may conduct independent testing. Neither the anti-money laundering compliance person nor a person performing the functions being tested may do the independent
What is the minimum size a transaction must be to file under the Hart Scott Rodino (HSR) Act?
$80.8 million. Most merger transactions must file a notification and report under the (HSR) Act to the FTC and the Anti trust division of the DOJ. This notification process provides the FTC and the DOJ information about large mergers and tender offers bef
An investment banking registered representative has been asked by an affiliate of his broker-dealer to manage a private issue in the commercial lending space. He has agreed, but has not notified his broker-dealer. Which of the following is true?
This is never okay
Which is not one of FINRA's activities?
A. Overseeing the liquidation of bankrupt broker-dealers
B. Establishing rules governing OTC securities
C. Operating and maintaining BrokerCheck
D.
Investigating its members and their associated persons for complian
FINRA's first responsibility is to register all broker-dealers operating in the United States. FINRA establishes and interprets the rules that govern the over-the-counter markets, and it is charged with ensuring industry compliance with those rules. FINRA
Which of the following persons are responsible for completing the firm element of continuing education:
I. Lisa, a registered person who works as a broker's sales assistant taking customers' calls
II. Billy, a registered operations professional who strict
I and III. The firm element of continuing education is the part developed by the member firm for its employees. It must be given to all registered personnel who have contact with the public. Linda is exempt because she does only clerical work and therefor
FINRA Rule 8310 - Sanctions for the Violations of the Rules, states the punishments imposed when a member or person associated with a member violates securities laws and rules. Which of the following are possible sanctions?
I. cease and desist order
II. s
FINRA Rule 8310 - Sanctions for the Violations of the Rules states the punishments imposed when a member or person associated with a member violates securities laws and rules. All of the following are possible sanctions: cease and desist order, suspension
The price of a 10b-18 repurchase transaction:
A. Must not exceed the highest independent bid or the last independent transaction price, whichever is lower
B. Must not exceed the lowest independent offer or the last independent transaction price, whichever
Rule 10b-18 provides a safe harbor for issuer repurchase transactions. It allows the issuer to repurchase its own stock without being liable for manipulation based solely on the manner, timing, price, and volume of the repurchase transactions. In order to
The term "accredited investor" as defined in the Investment Company Act of 1940 includes all of the following except:
A. A registered investment company
B. A bank acting in a fiduciary capacity
C. Any person who claims to hold extensive investment knowled
A bank acting in a fiduciary capacity, an insurance company, and a registered investment company are all considered accredited investors under the act. In addition, some individuals may qualify as accredited investors based on such factors as financial so
Which of the following would not be acceptable under the FINRA gift and gratuity rule?
A. A gift worth $150 paid for by an associated person for a client's wedding
B. Two tickets to a sold-out concert bought from a scalper for double their face value of $
Typically FINRA allows gifts under $100 to be given or received from customers. The $100 restriction does not apply to personal gifts not paid by the firm (wedding presents) or promotional items (t-shirts and pens). The restriction may be waived with a pr
The Securities Exchange Act of 1934 requires fingerprinting of certain securities industry personnel. Which of the following may be exempt from fingerprinting?
I. Personnel who work in a broker's office answering the phone but are not involved in selling
The Securities Exchange Act of 1934, Rule 17f-2, requires fingerprinting of certain industry personnel. Generally, anyone involved in selling securities must be fingerprinted. There are exceptions to this rule. If a person is working in an administrative
If an issuer purchases its own security in the open market, the purchase cannot be greater than what percentage of the ADTV relating to the security?
Section 10 of the Securities Exchange Act of 1934 allows issuers to purchase their own securities from the open market provided that the purchase is not greater than 25% of the average daily trading volume for the security during the four calendar weeks p
Which of the following must be reported to FINRA within 30 calendar days of its occurrence?
A.
Suspension of an agent's registration
B.
Discovery that a firm is subject to the taping rule
C.
Change in ownership or control of a member
D.
First use of a pie
A firm must notify FINRA within 30 calendar days of when a representative is suspended or has committed a violation. A member must file an application with FINRA 30 days in advance of a change in ownership or control. There is no specific reporting requir