FINRA & SEC Rules
The time period when FINRA registered persons must complete the Regulatory Element of Continuing Education?
What is on the 2-year anniversary of their registration and every 3 years thereafter?
When my price rises my yield declines.
What is a bond?
For most suspicious transactions depending on the facts and circumstances surrounding the transaction, this type of report must be filed.
What is a Suspicious Activity Report (SAR)?
A debt security issued by a corporation and sold to investors.
What is a Corporate Bond?
Any written (including electronic) communication that is distributed or made available to more than 25 retail investors within any 30-calendar-day period.
What is Retail Communications?
A document summarizing information concerning a broker-dealer's financial and operational status that a broker-dealer is required to file with its regulatory authority on a periodic basis.
What is a FOCUS Report?
I measure annualized return on bonds by looking at the difference between the Price Paid and the Par Value.
What is Yield to Maturity?
70.5 years of age is when contributions to this type of savings plan end, and withdrawals must begin.
What is an IRA account?
These letters represent the largest equities-based exchange in the world per total capitalization of its listed securities.
What is the NYSE?
An RR must do this when he/she receives a written complaint from a customer
What is report the complaint to their Principal and to Compliance?.. who must keep a separate complaint file, along with a record of any action taken
The violation a FINRA Registered Representative is guilty of when purchasing stock based on knowledge of a pending large client order.
What is Front Running?
I have interest coupons attached to my certificate.
What is a bearer bond?
A legal document in which one person (the principal) appoints another person to act as agent on his or her behalf, thus conferring authority on the agent to perform certain acts or functions on behalf of the principal.
What is a Power of Attorney?
FINRA rules divide communications with the public into these 3 categories.
What are Retail Communications, Institutional Communications and Correspondence?
The type of Risk that stems from the lack of marketability of an investment that cannot be bought or sold quickly enough to prevent or minimize a loss
What is Liquidity Risk?
This rule focuses on a firm's liquidity and is designed to protect customers, counter parties, and creditors by requiring that broker-dealers have sufficient liquid resources on hand at all times to satisfy claims promptly.
What is Net Capital Rule?
I charge the client a single fee that covers transactions and management services together.
What is a Wrap Account?
This annuity payout option guarantees a monthly check for a certain period of time regardless whether the annuitant is living.
What is Period Certain?
A security that entitles the holder to buy the underlying stock of the issuing company at a fixed price called the exercise price until the expiry date.
What is a Warrant?
Of what violation is an RR guilty when buying stock based on knowledge of a pending large client order?
What is Front Running?
Federal legislation requiring “full and fair disclosure” of all material information about the issuance of a new security.
What is the Securities Act of 1933?
I am a securities transaction outside the regular course or scope of an associated person's employment with a FINRA member that occurs away from the Firm.
What is a Private Securities Transaction?
No registered person may be an employee, independent contractor, sole proprietor, officer, director, or partner of another person, or be compensated, or have the reasonable expectation of compensation, from any other person as a result of this type of activity, unless he or she has provided prior written notice to the member firm.
What is Outside Business Activity?
This occurs when a broker engages in excessive buying and selling of securities in a customer’s account primarily intended to generate commissions that benefit the broker.
What is Churning?
Mutual Funds offer ______________________ to allow buyers to add all purchases made from a fund family to reduce sales charge.
What is Rights of Accumulation