Unit 1
What is a person?
A person means a natural person (An individual), company, government, or political subdivision, agency or instrumentality of a government. It is basically anyone or entity that has the legal capacity to open a brokerage account.
This generally refers to a disclosure document used to provide investors full and fair disclosure of material facts regarding primary market securities
What is a prospectus ?
What is the OSJ?
What is Office of Supervisory Jurisdiction?
This is used during the registration phase of a new issue to generate interest in a new offering . It may not be used to solicit orders.
What is a Preliminary Prospectus (red herring)
An account opened by a broker dealer requires a completed ________. The registered representative needs to obtain certain information to complete this.
What is a new account form?
Disciplinary sanctions within the previous 10 years by the SEC another SRO a foreign financial regulator or foreign equivalent of an SRO can be cause for _______ from the FINRA membership
What is statutory disqualification ?
This is considered the people & places act and formed the SEC?
What is the Securities Exchange Act of 1934?
What is annually?
This is a written or electronic communication that is distributed or made available to 25 or fewer retail investors within any 30 calendar day period.
What is Correspondence?
FINRA rule requires that customers account information be updated how often?
What is every 3 years?
Your company has been designated as having hired an excessive number of licensed personnel from a disciplined form. The company must arrange to monitor all sales efforts, including taping conservations between salespersons and the public. How long doe s the company have to install the required systems and procedures?
What is 60 days?
What is an investment company organized under a trust indenture and is identifiable by several characteristics. These do not elect board of directors but do not have board of trustees.
What is Unit Investment Trusts ?
Copies of customer complaints, as well as quarterly filings, must be retained for how long?
What is 4 years?
What would commonly be thought of as "advertisements" and "sales literature" generally fall under what definition.
What is retail communication?
Under SEC rules, a statement for an inactive account should be sent to each customer _________?
What is quaterly?
Investors wishing to investigate the registration history of the registered representative handling their account would do so by going to Broker Check program at
What is the Central Registration Depository (CRD) keeps a registrant's history. This is accessible through BrokerCheck.
A company is considered primarily in the business of investing if more than ___% of the issuers total assets is invested in an investment security.
What is 40 % ?
No claim is eligible for arbitration if how many years has passed ?
What is 6 years?
This rule applies to IPO's of common stock and prohibits member firms from selling a new common stock issue to any account in which restricted persons have a beneficial interest.
What is FINRA Rule 5130
This specifies the date a customer must pay for the purchase of transitions
What is REG T Payment ?
You hired a Tier 3 individual this will involve an annual charge by FINRA of ______
What is $0.00
Both variable annuities & mutual funds provide what.....
Manage portfolios &
Account value to pass to the owner estate upon the owner death
FINRA rules require a member firm to secure what insurance to protect it from employee theft, larceny, embezzlement, fraudulent trading and forgery of securities or checks.
What is Fidelity Bonding?
A ____ account is an account set up with pre approved authority for a Registered Representative to make transactions without having to ask the customer for specific approval.
What is a discretionary account?
What are the 3 stages of money laundering?
What is placement, layering & integration?