HISTORY OF THE STOCK MARKET
FINRA was founded this year as the successor to the National Association of Securities Dealers, Inc. (NASD) and the New York Stock Exchange Regulation, Inc.
What is 2007?
These two Investment banks were among the largest investment banks to fail during the 2008 Credit Crisis.
What are Lehman Brothers and Bear Stearns?
This type of security represents a unit of ownership in a corporation.
What is Common Stock?
(a) Each member shall designate and specifically identify to FINRA one or more principals who shall establish, maintain, and enforce a system of supervisory control policies and procedures.
What is FINRA Rule 3120- Supervisory Control System?
100 shares of Apple were bought in my account and I had no idea.
What is an unauthorized trade?
In 1792, it was under this tree where 24 stockbrokers and merchants signed an Agreement to create a stock exchange on Wall Street in New York City.
What is the Buttonwood Tree
This bank, Founded by Alexander Hamilton in 1784, is the country's oldest bank and the longest continuously operating company in New York City.
What is the Bank of NY?
An agreement between two parties to facilitate a potential transaction involving an asset, at a preset price and date.
What is an Options Contract?
(a) No member shall effect with or for any customer's account in respect to which such member or his agent or employee is vested with any discretionary power any transactions of purchase or sale which are excessive in size or frequency in view of the financial resources and character of such account.
What is Rule 3260 (a)- Discretionary Account/Excessive Trading.
My broker keeps making trades in my account just to boost his commissions.
What is excessive trading or churning?
The Dow Jones Industrial Average (DJIA), which was first published on May 26, 1896, followed this many of the largest companies in each sector of the U.S. stock market.
What is 12?
After Congress forced banks to choose between serving commercial or institutional clients, these two individuals leave J.P. Morgan & Co. to open a new investment bank that bears their names.
Who are Harold Stanley and Henry Morgan?
This is the process that Bitcoin and several other cryptocurrencies use to generate new coins and verify new transactions.
What is Mining?
a) Each member shall keep and preserve in each office of supervisory jurisdiction either a separate file of all written customer complaints that relate to that office (including complaints that relate to activities supervised from that office) and action taken by the member, if any, or a separate record of such complaints and a clear reference to the files in that office containing the correspondence connected with such complaints.
What is FINRA Rule 4513. Records of Written Customer Complaints
I invested in a promissory note in my broker Henry's company, Henry LLC, by providing a check directly payable to Henry.
What is a private securities transaction?
On this day, the Dow Jones Industrial Average declined by more than 22%, the largest single-day percentage decline.
What is Oct. 19, 1987?
The founder of this firm was scheduled to travel on the Titanic, but decided to remain on holiday in France instead.
What is J.P. Morgan?
These securities contributed significantly to the 2008 financial crisis by allowing lenders to package and sell high-risk loans to investors.
What are Mortgage-backed securities (MBS)?
Every member of a national securities exchange who transacts a business in securities directly with others than members of a national securities exchange, every broker or dealer who transacts a business in securities through the medium of any such member, and every broker or dealer registered pursuant to section 15 of the Act (15 U.S.C. 78o) must make and keep current the following books and records relating to its business
What is SEA Rule 17a-3 Records to be made by certain exchange members, brokers and dealers?
My broker, AnneMarie, has fallen on hard times so I gave her $10,000 to help her out. She has not paid me back yet, although I did expect repayment.
What is a loan with customer?
This woman was the first female stockbroker on Wall Street, and the first female to run for president of the United States in 1872.
Who is Victoria Woodhull?
In 2003, the SEC charged four Executives from this firm with Aiding and Abetting Enron in Accounting and securities Fraud. The fraud involved Enron’s sale of electricity-producing barges off the coast of Nigeria to this firm, which allowed Enron to illegally book about $12 million in pretax profit, when in fact there was no real sale and no real profit.
What is Merrill Lynch?
This contract between an insurance company and an individual guarantees the insurer will make regular payments to the individual at some point in the future.
What is a variable annuity?
This set of rules adopted pursuant to the GLBA and the Fair and Accurate Credit Transactions Act of 2003 (“FACT Act”) govern the treatment of nonpublic information about consumers by certain financial institutions.
What is Regulation SP?
I reached out to my broker dealer to understand why $25,000 had been transferred from my account and they provided me a copy of a letter of authorization I did not sign.
What is forgery?