Dates, Times, Abbreviations Flashcards
1
Q
FINRA must be notified _______ days prior to the effective date of a statutory subordinated loan
A
30 days
2
Q
For how long must a broker dealer maintain institutional sales material?
A
3 years
3
Q
What is the maximum criminal penalty for an individual convicted of insider training?
A
$5 million fine and or up to 20 years in prison
4
Q
True or false: a temporary location used less than 30 days per year is a branch office
A
False
If use less than 30 days per year at temporary location is a non-branch office (vacation home)
5
Q
When is FOCUS report part 1 required to be filed by carrying broker dealer and introducing broker dealer?
A
For carrying broker, dealers, within 10 business days of month end
For introducing broker dealers, the report is not required
6
Q
After what time May market and limit -on -close orders no longer be canceled (even for a legitimate error)?
A
3:58pm
7
Q
Delivery versus payment DVP requires payment to be made no more than ______calendar days from the transaction
A
35 calendar days
8
Q
When must clients of a broker dealer receive the firms most recent balance sheet?
A
On request
9
Q
All forms of communication with the public must be kept for _____ years, but easily accessible for the first ____years
A
Kept for three years, easily accessible for two years
10
Q
When must a broker dealer fill a clients limit order after executing a trade for its own account at the same or better price?
A
Immediately – within 60 seconds
11
Q
If an analysts firm just published research on a company, how long must he wait before trading the stock?
A
Technically, he doesn’t have to wait because there is no restriction, but a research analyst must follow his own firms procedures
12
Q
How often must senior management be apprised of the status of the firm supervisory control system?
A
Annually
13
Q
Upon validation of a transfer, the transfer must be completed within _______business days
A
Three business days
14
Q
After notification that the bond has been delivered, the actual buying may not occur for ________business days
A
Two business days
15
Q
A net adjustment is required for short securities differences remaining unresolved after ______business days
A
7 business days
16
Q
A non-branch office must be reviewed on a ______cycle
A
Periodic
17
Q
Copies of confirmations must be maintained for ___ years
A
3 years
18
Q
For trades that occur between 8 AM and 6:29:59 PM ET, when is the TRACE report made?
A
Within 15 minutes of the trade
19
Q
An arbitration award must be paid within _____days
A
30 days
20
Q
Under the code of procedure, a sanction becomes effective _____ days after the firm has received final notice
A
30 days
21
Q
What entity is the parent of the national securities clearing corporation NSCC?
A
DTCC the depository trust and clearing corporation
22
Q
How long must a syndicate member wait before publishing research on the issuers IPO?
A
10 calendar days
23
Q
Within ____business days of being sent to an OSJ, a principal must approve or reject a variable contract application
A
7 business days
24
Q
Under the TCPA, on what days do the call restrictions apply?
A
Every day of the year
25
If a written complaint relates to general securities activities , for how long are the records required to be maintained?
4 years
26
For how long must a prospectus be provided in the aftermarket for a non-exchange IPO?
90 days
27
True or false: although NASDAQ marketmaker open hours are 9:30 AM to 4 PM, extended trading hours are available
True, however, specific risks are inherent in extended hours trading
28
The hearing panel must give a member firm _____days prior notice before a hearing is held
28 days
29
According to the HSR Act, and M&A deal may not be completed until_____ days after notification
30 days
30
The statute of limitations for submitting an arbitration claim is _____years from the occurrence of the event
6 years
31
What is the ADF?
The alternative display facility;ECNs use it to display orders rather than the NASDAQ market center execution system
32
For retail communication regarding variable contract performance, what periods must be covered?
1, 5, 10 year periods ( if under 10 years, whatever the policies life is)
33
According to industry rules, _____ % is the maximum sales charge on mutual funds
8.5%
34
A market maker withdrawing its quote for legal or regulatory reasons will be excused for up to _____days
60 days
35
What is the penalty of a NASDAQ market maker has an unexcused withdrawal from publishing a quote?
20 business days suspension in that stock
36
Between 8 AM and 6:29:59PM ET, 2 FINRA members are involved in a trade. Who reports it to TRACE?
Each FINRA member is required to report its side of the trade
37
When buying securities and restricted margin account clients must deposit ___% of the trade within_______ business days
50% ; three business days
38
Generally, how often will a broker dealer calculate the required deposit in its special reserve bank account?
On a weekly basis
39
Upon making changes to its Fidelity bonds, the broker dealer must notify its DEA______
Promptly
40
How often are firms required to evaluate their training needs?
Annually
41
Rule 147 offerings may not be sold to an out-of-state investor for _____months following the last sale of a new issue
Six months
42
A trial balance used to calculate net capital is prepared ______
Monthly
43
How often are broker dealers required to send statements to clients regarding penny stocks in their accounts?
Monthly
44
After filing notice of an impending M&A deal, it may not be completed until how many days have elapsed?
30 days
45
Individuals must register with the SEC within _______ of becoming an insider
10 days
46
What step is required if a failed-to-deliver position has been open for 13 consecutive settlement business days?
Mandatory closeout
47
What time limit exists for issuers/affiliates of actively traded securities that are re-purchasing their own security?
They may not purchase their security within the last 10 minutes of the trading day
48
Regulation A requires an issuer to file _____ years of financial statements that may be________
2 years ; unaudited
49
On an annual basis, when are representatives required to complete the regulatory element of continuing education?
December 31
50
A market maker’s registration ceases if no quote is made within _____business days
Five business days
51
When recommending a variable annuity to a client, when must the principal review and approve/disapprove the trade?
Within seven business days
52
What are the justifiable reasons for denying an individuals registration?
Conviction for any felony or securities related misdemeanor within the last 10 years
53
Typically, investment companies are allowed no more than ______days from request to complete a redemption
Seven days
54
If an investment analysis tool is made available to retail investors, FINRA must be provided access______
Upon request
55
A clients name and number must be kept on the do not call list____
Indefinitely
56
Broker dealers must review their Fidelity bond coverage____
Annually
57
What is the CQS? And what does it do?
The consolidated quotation system; provides quotes for NYSE and AMEX listed securities, including third market quotes
58
What are treble damages?
The civil penalty for insider trading, which is three times the profit made or loss avoided
59
What is the aftermarket prospectus requirement for the follow on offering of an exchange listed stock?
Zero days; no requirement exists for the follow on offering of an exchange listed stock
60
NASDAQ system hours are _____ am to _____ pm ET
4am to 8pm ET
61
If a customer changes his address, where and when must notification of the change be sent?
Notification must be sent to the customers old address within 30 days of the change
62
The NBBO or national best bid and offer is also referred to as the _______ market
Inside market
63
A satisfactory subordinated loan has a minimum maturity of _____
One year
64
For how long must a prospectus be made available in the secondary market for an exchange listed IPO?
25 days
65
When must retail communication concerning CMO’s be filed with FINRA?
Within 10 business days of first use
66
Define short swing profit
A profit earned nonstock held less than six months
67
When is the firm business continuity plan made available to FINRA?
Promptly upon request
68
Under the TCPA, if requested, a client must be placed on the do not call list within ______days of request
30 days
69
When must insiders report their transactions?
Within two business days of the trade
70
True or false: trades executed between 8 PM and 8 AM Eastern time must be reported within 10 seconds of execution
False.
The 10 second reporting requirement applies to trades executed between 8 AM and 8 PM Eastern time
71
Fails-to-deliver and threshold securities that have existed for _______ settlement days must be closed out
13 consecutive
72
When showing mutual fund returns, what time periods must be included?
1, 5 , 10 years or life if the fund if less than 10
73
How often must broker dealers publish reports summarizing their order routing practices?
Quarterly
74
An issuer with $700 million outstanding voting shares will be placed in what category?
Well known seasoned issuer (WKSI)
75
A seasoned issuer may use a free writing prospectus (FWP)______ filing its registration statement with the SEC
After
76
Jim was convicted of insider-trading and served a three-year prison term. May he now re-enter the securities industry?
No – statutory disqualification bars as a person from the securities industry for 10 years from the date of the conviction
77
If a qualification exam has been failed for the third time, what waiting period applies?
180 days after the third unsuccessful attempt and each attempt after that
78
Trades involving corporate and municipal security, settled by the_____ day following the trade date (T+_)
First business day (T+1)
79
For how long is a firm required to retain any written or electronic communication?
Three years from the date of last use
80
All documents are to be maintained readily accessible for the first ____years
Two years
81
Once notified by a code of procedure hearing panel, the hearing must be held within _____days
28 days
82
What is the private investment in public equity (PIPE)?
When a broker dealer acts as a placement agent for restricted securities of an issuer whose securities are already publicly traded
83
Three months ago an insider required stock at $12. If she sells the sheriff today at $15 may she keep the profit?
No – under the short swing profit rule and insider may not keep a profit earned on stock held less than six months
84
A syndicate member must wait____ calendar days before publishing research on the issuers IPO
10 calendar days
85
If securities are discovered missing during a quarterly securities count , what is the reporting period?
No later than 10 business days from discovery
86
According to regulation M, the restricted period begins either ____ or _____business days before pricing
1 or 5
87
The special reserve bank account must be evaluated by carrying firm on a _____basis
Weekly
88
How long are securities restricted that are received by a broker dealer as compensation for an underwriting?
Six months
89
To be considered a threshold security, excessive fails to deliver must occur for ______consecutive settlement days
5
90
Mutual fund shares have lone value after they have been owned for ____days
30 days
91
True or false: form U5 is retained for six years, following termination of employment
False, it is retained for three years
92
For insider trading violations, the SEC can sue for treble damages – what does the statement mean?
The SEC can sue for three times the damage – profit made or loss avoided
93
What is the NBBO?
The national best bid and offer, also considered the inside market
94
Investors may not purchase a new issue if those shares were sold short _____business days prior to the offering
5
95
In CQS, what is the penalty if a market maker fails to provide timely quotes for a security
One business day suspension from market making in that security
96
Under the limit order display rule, how quickly must orders that improves the market makers quote be displayed?
Immediately, but no later than 30 seconds
97
Unless appealed when do penalties become effective under the code of procedure?
No later than 30 days from the decision
98
As stated in a broker dealers supervisory program, with whom must the CEO annually conduct a meeting?
The CCO – the broker dealers chief compliance officer
99
The final settlement of a syndicate account must occur within ______of the syndicate closing
90 days
100
How often must all registered personnel participate in a compliance meeting?
Annually
101
Or margin clients, a firm must provide at least _____days written notice of changes in the method of computing interest
30 days
102
When must RRs complete the regulatory element of continuing education?
Annually by December 31
103
How long must an underwriting manager wait before publishing research on an issuers IPO?
10 calendar days
104
The SEC must be notified ____days prior to the effective date of a satisfactory subordinated loan
10 days
105
A carrying broker dealer must file FOCUS report part ll within _____business days of the end of the quarter
17 business days
106
Insiders must return swing profits, which are profits earned on stock that has been held for less than _____months
6 months
107
A penalty imposed by hearing panel is generally effective ____days after assessment
30 days
108
For how long is an employee questionnaire (form U4) and fingerprint cards retained?
For three years after the representative leaves the firm
109
Shelf registration is valid for up to ____ years
3 years
110
NASDAQ market maker normal market hours are ____am to _____ pm ET
9:30am to 4pm
111
What two choices does a firm have once it is notified that it has met the threshold established under the taping rule?
Either begin taping within 60 days, or reduce its staff level below the threshold within 30 days
112
Once form 144 is filed, owners have ____ days to sell their securities
90 days
113
What must be noted by a client to prevent her by limit and sell stop orders from being reduced on the ex- dividend date?
Do not reduce – DNR
114
The _______ and _______ of an underwriting may not immediately issue research reports on investment banking clients
The manager and comanager
115
According to the piggyback exception , when is the filing of form 211 not required?
When the stock has been quoted on a regular and continuous basis for the past 30 days
116
Issuers of non-actively traded securities may not purchase their own shares during the last ____minutes of trading
During the last 30 minutes of trading
117
When may regulation S securities be re-sold through a designated offshore securities market?
Immediately
118
If the S& P 500 falls by 20% from the previous days close, trading halts for_____
The remainder of the day
119
Any trades affected by representatives must be approved ______by a principal
Promptly
120
And mutual fund, retail, communication, performance statistics must cover ____, ____, and ____ year periods
1,5,10
121
What is considered regular and continuous quoting as defined by the piggyback exception?
Over the last 30 days, no more than four business days elapsed without a quote
122
If a storyboard has been filed, when must the final version of a TV or video advertisement be filed with an SRO?
Within 10 business days of initial broadcast
123
Once appointed as a principal, a candidate has ______days to qualify for the position
120 days
124
Customer ledgers ( account records) are maintained for _____years
Six years
125
How many days advance notice is provided to clients if a broker dealer changes loan terms (interest rate)?
30 days
126
If owned for____ days, open an investment company (mutual fund) shares may be used as collateral in a margin account
30 days
127
An offering effective date is generally_____ days after the filing of the last amendment
20 days
128
A market maker may withdraw its quote for up to_____ business days for issues beyond its control (eg system outages)
Five business days
129
How many business days prior to presentation must evidence of incumbency be dated?
No more than 60 days
130
An underwriting manager must wait_____ calendar days before publishing research on an issuers IPO
10 calendar days
131
When may telemarketers place calls to perspective clients?
From 8 AM to 9 PM on any day of the year
132
If a firms net capital is below 120% of its minimum, or its aggregate indebtedness to net capital ratio exceeds 12:1, when is notification required?
Within 24 hours of discovery
133
And what does a real estate investment trust (REIT) invest?
A diversified portfolio of properties and or mortgages
134
For how long must a prospectus be provided in the aftermarket for an IPO of a stock to be listed on an exchange?
25 days
135
What is the system that provides quotes for the third market?
The consolidated quotation system – CQS
136
An applicant will be subject to statutory disqualification for any felony conviction within the last ____years
10 years
137
What system facilitates the mandatory reporting of secondary market trades in eligible fixed income securities?
TRACE
Trade reporting and compliance engine
138
An underwriting manager must wait _____calendar days before publishing research on the issuers secondary offering
Three calendar days
139
The manager or co-manager of an IPO must satisfy a quiet period of _____calendar days prior to publishing research
10 calendar days
140
When does the restricted period begin for security with the public float of $50 million and and an ADTV of $125,000?
One business day prior to pricing
141
According to the locate requirement of regulation, SHO, broker dealers may use an easy to borrow list less than ______ old
24 hours
142
What other term may be used for a companies chief executive officer (CEO) or chief financial officer (CFO)?
Principal executive officer (PEO) or principal financial officer (PFO)
143
A temporary subordinated loan for underwriting purposes carries a maximum maturity of _____days
45 days
144
According to regulation T, what happens to a client account if she fails to pay in timely manner?
Her account will be frozen for 90 days
145
For their customers with free credit balances, broker dealers must provide a notification at least_______
Quarterly
146
When will the following trades be reported to TRACE? One was executed at 6:20 PM, and the other at 8:40 PM
Both need to be reported within 15 minutes of TRACE opening on the next business day
147
What investment facilitates the trading of foreign securities in US markets?
American depository receipts ADRs
148
Define initial public offering IPO
A company’s first public offering of securities
149
Securities quoted through the CQS are ______securities trading over-the-counter
Listed
150
What type of transaction is being executed when a client purchases securities with payment made by a third-party?
Delivery versus payment DVP or collect on delivery COD
151
If non-public information is unintentionally disclosed to an analyst, when must it be disclosed to the public?
Within 24 hours of its disclosure
152
Annual report of financial condition is filed with SEC no later than ____from the date of the financial statement
60 days
153
A broker dealer, outstanding subordinated debt may not exceed __% of its debt equity total for a period exceeding ___ days
70% , 90 days
154
A broker dealer, outstanding subordinated debt may not exceed __% of its debt equity total for a period exceeding ___ days
70% , 90 days
155
A branch office must be inspected every___
Three years
156
What is the benefit of ACATS?
It replaces a manual account transfer system with a fully automated and standardized one
157
What are the regular hours for the ADF trading center?
9:30 AM to 4 PM ET
158
How long must new issues be held before they may be used as collateral?
30 days
159
How often must market centers publish reports of the efficiency of executions?
Monthly
160
If equity securities are issued by a non-reporting company under regulation S, when can they be re sold in the US?
One year after issuance
161
If a firm reduces its staff to avoid the taping rule, the individuals may not be rehired for ____ days
180 days
162
For underwriting purposes, a broker dealer is allowed up to____ temporary subordinated loans over____ months
Three ; 12
163
If a client requests a copy of the pre dispute arbitration agreement, when must it be provided?
Within 10 days of the request
164
Under the code of procedure, a decision must be rendered within____ days after collection of evidence stops
60 days
165
What is the ADF reporting system?
The alternative display facility, that reports trades in securities
166
If a discrepancy claim arises after the transfer, the carrying firm must resolve it within_____ business days
Five business days
167
How many times is a quarterly form 10- Q filed each year?
Three times per year since the fourth quarter is included in the annual report
168
QIU is a firm that has acted as______ or_____ in at least______ similar offerings within the last_____ years
Manager or co-manager in at least three similar offerings within the last three years
169
True or false: an order entry firm has 10 seconds to accept or reject a trade report submitted to FINRA
False – the order entry firm has 20 minutes to accept or reject
170
True or false: form 211 must be filed by all market makers in NASDAQ securities
False – form 211 is required for those initiating quotes in non-exchange OTC securities
171
In the aftermarket, a prospectus must be provided for_____ days following a non-exchange follow on offering
40 days
172
What is an ECN?
Electronic communication network – anyone of several systems which permit the entry and dissemination of quotes
173
When must the Board of Directors of the company, subject to attend her offer, advise at shareholders regarding the offer?
Within 10 days from the date the tender is made
174
True or false: under regulation, S, investors may resell nonconvertible debt in the US, even if it is held for less than one year
True – non-convertible debt has a 40 day holding period
175
Filing form 211 is not required if stock has been the subject of regular and continuous quotes for the past ____days
30 days
176
A DVP transaction must be completed within _____calendar days
35 calendar days
177
Upon receiving a second notice from the department of enforcement regarding a complaint, firms must respond within_____days
14 days
178
On 5/1 , Joe emails 20 clients to promote a product. On 7/1 the same email as sent to 15 clients. Is approval needed?
No, since the promotional email is sent to 25 or fewer clients over 30 calendar days, only review is required
179
When are clients provided with a copy of the Predispute arbitration agreement?
The earlier of 30 days from signing the agreement or within 10 business days of request
180
Who publishes a list of all threshold securities?
A self regulatory organization SRO
181
If retail investors are provided direct access to an investment analysis tool, when must FINRA be provided equal access?
Upon request
182
A person must register with the SEC within____ days of becoming an insider by filing form____
Within 10 days of becoming an insider by filing form 3
183
A branch that supervises one or more non-branch locations must be inspected
Annually
184
Corporate bond trades are reported through TRACE within_____ minutes
15 minutes – TRACE then disseminates information in real time
185
A member firms written and electronic communication must be retained for______ years from the date of last use
Three years
186
Based on written request, what is the maximum period that a broker dealer may hold customer correspondence?
Three months – two exceeded three months, the customer must provide the broker dealer with a valid reason for the request
187
If a client equity falls below 25% the maintenance call must be met______
Promptly
188
True or false: all branch offices are inspected annually
False – branch offices that supervise one or more other offices are inspected annually
189
If a Fidelity bond is modified or canceled, when must FINRA be notified?
Promptly
190
When does the decision to ban or expel a registered representative from association with a member firm become effective?
Immediately
191
Illustrations showing returns for variable products must be for a minimum time of_____ year
One year
192
What is CAT?
The consolidated audit trail; it enables FINRA to review all trading activity in the US equity and option markets
193
What is TOD as it relates to a customer account?
Transfer on death – transfer on death allows assets to transfer to a named beneficiary owners death
194
Schedule____ must be filed with the SEC within_____ business days of acquiring more than___% of the companies stock
13D ; 5 days ; 5%
195
The principle of a member firm must approve discretionary orders_____
Promptly
196
To not be a branch office, a location may not be used for securities business more than_____ business days per year
30 business days
197
Define promptly as it relates to a principles approval of discretionary orders
Promptly means on the day of the trade, but not in advance
198
Account statements must be sent to a customer at least ______
Quarterly
199
In the aftermarket, a prospectus must be provided for_____ days following a non-exchange IPO
90 days
200
What is the maximum period that a stabilizing bid may remain open in the marketplace?
Indefinite
201
Based on written instructions, the broker dealer may hold customer correspondence for ______months
Three months
202
A carrying broker dealer must file FOCUS report part 1 within_____ business days of month-end
10 business days of month-end
203
After resignation of registration, how long does FINRA’s jurisdiction last?
Two years
204
A record of all customers securities positions, along with profits and losses, must be maintained for _____years
Six years
205
What does UTP mean?
Unlisted trading privileges, which allows an exchange to trade securities, not listed on that exchange
206
To begin using a form of electronic storage the broker dealers DEA requires a ______days advance notice
90 days
207
The telephone consumer protection act TCP, allows calls from______to ______ local time of the called party
8 AM to 9 PM
208
What happens if a variable contract is sold to a client who then cancels the contract within seven business days?
The selling broker dealer must return its portion of the sales charge
209
For how long are securities restricted if received by the syndicate as compensation?
Six months
210
The holding period for unregistered (restricted) securities under rule 144 is______
6 months
211
How often must an updated copy of the privacy notice be provided to customers?
At least once during each 12 months cycle
212
What amount of time must elapse before debt securities issued under Regulation S may result into the United States?
40 days the securities would remain exempt from registration
213
According to New York Stock Exchange rules the S&P 500 falls by 13% from the previous days. Close, trading will hold for ____minutes.
15 minutes
214
A trade in a TRACE eligible security is executed at 2:55 PM. When is the trade required to be reported?
By 3:10 p.m. – within 15 minutes
215
Customer account information must be updated every ____ months
36 months – three years
216
When is a broker dealer required to report operational difficulties?
Within 24 hours
217
What is the OFAC list?
The office of foreign assets control of the United States treasury list – it identifies suspected terrorists and criminals
218
For passive market making to occur for a stock it must have how many independent marketmakers?
One
219
Any awards granted by an arbitrator must be paid within how many days?
30 days
220
Trades executed through an electronic system are reported________
Automatically
221
A TRACE- eligible corporate bond trade occurs at 6:20 PM. When is the trade required to be reported?
It may be reported within 15 minutes of opening on the next business day
222
A branch office that is NOT responsible for supervising another office is inspected every_____ years
3 years
223
What is TRACE?
The trade reporting and compliance engine – TRACE is a reporting system for corporate bonds
224
Broker dealers are not required to take action if a margin deficiency is less than $______
$1000
225
________ following the trade date settlement for trades of US government securities or option contracts
One business day T+1
226
Within _____ days of notification that it is subject to rule, a firm may reduce its staff to avoid the rule
30 days
227
Client information is sent to the client within____ days of the account opening and updated at least every_____ months
30 days; 36 months
228
When do CAT reports need to be submitted to FINRA?
On the trading day after the data is recorded
229
How often must clients be notified of the availability of the broker check system?
Annually
230
If the terms of a tender offer are changed, for how many additional days must the offer remain open?
For at least 10 business days from the change
231
To be considered a WKSI, the issue must have been a reporting company for the previous_____ months
12 months
232
A broker dealers equity is below____% of its debt equity total, a violation will occur if not corrected within______ days
30%, within 90 days
233
The CQS is the ________________
Consolidated quotation system
234
How frequently do broker dealers conduct physical accounts of securities in their possession?
Quarterly
235
For how long after an associated person leaves a broker dealer or employee records maintained?
Three years
236
For SEC purposes, if it insider purchases or sells his stock, what form is filed and when is it filed?
form 4 must be filed with the SEC within two business days of the trade
237
After an account is closed, for how long our customer account records maintained?
For six years after the account is closed
238
According to the equity IPO rule, firms must update the eligibility of purchasers_______
Annually
239
Using the MQP, a person may be out of the securities industry for up to_____ years before having to qualify
Up to five years
240
True or false: a registered person with no disciplinary actions for 15 years is excused from the regulatory element
False all registered personnel must complete the regulatory element of continuing education annually by December 31
241
What is the criminal penalty for insider trading by corporations?
$25 million per violation
242
Under Sarbanes-Oxley, how often must a company file reports detailing internal controls over financial reporting?
Annually
243
What is the maintenance requirement for all forms of communication with the public?
Three years from last use
244
To avoid a close-out, a selling client must deliver the securities to the broker dealer within how many days from settlement?
10 business days
245
Issuers of actively traded securities may not purchase their own shares during the last_______ minutes of trading
The last 10 minutes of trading
246
When is FOCUS report part ll ( for carrying broker dealers) and FOCUS report part llA (for introducing broker dealers) required to be filed?
Within 17 business days of the end of the quarter
247
An investor is eligibility to purchase an equity new issue must be confirmed________
Annually – called the precondition of sale
248
By what date must a clearing firm send to the introducing firm the list of all reports that it can generate?
By July 1 – there after, the introducing firm may request any of the reports listed
249
If a broker dealers investment company communications include self created rankings, when must they be filed with FINRA?
At least 10 business days prior to use
250
Under regulation T, does the payment requirement apply to cash or to margin accounts?
Both – payment is due within three business days for a cash account (100% payment) and a margin account (50% payment)
251
When must a BD notify the authorities if securities are discovered missing due to a securities count ?
Within 10 business days
252
In the after market - for how long must a prospectus be provided following an IPO of a stock to be listed on an exchange?
25 days
253
If a security is recovered after having been reported as lost/missing, when must the SIC be notified?
Within one business day of recovery
254
When is a non-branch office inspected?
Periodically
255
If a firm is acting as a dealer (not a manager or co-manager) on an IPO, what’s the quiet period On research?
Dealers cannot publish research until 10 calendar days after an IPO
256
A registered representative discovered securities are lost/missing. When must she report this fact to the SIC and transfer agent?
Within one business day following a two day search
257
After receiving notice from the department of enforcement regarding a complaint, the firm must respond within_____ days
Within 25 days
258
The SEC may suspend trading on an exchange for up to ____ days
90 days
259
What is the trade reporting system form NASDAQ securities?
Trade reporting facility TRF- formerly ACT
260
Notice of buy-in may not be delivered to a seller sooner than______ business day after settlement
One business day
261
A carrying broker dealer must file FOCUS report part ll _________
Quarterly
262
When is settlement for a transaction That’s using a sellers option settlement?
On a date that’s agreed on by both parties, but not earlier than two business days after the trade date
263
A firm that reduces its staff to prevent from having to tape its calls must wait______ days before hiring those registered representatives
180 days
264
When must accompany file a form 10-K with the SEC?
Annually
265
What is TRF?
The trade reporting facility
TRF reports trades in NASDAQ and third market securities
266
What is the ORF?
The OTC reporting facility that reports trades in OTC markets (eg pink market)
267
And introducing file FOCUS report part llA Within_______ business days of the end of the quarter
17 business days
268
What is the penalty if a CQS market maker (third market) has an unexcused withdrawal from publishing a quote?
One business day in that stock suspension
269
What program allows a registered representative to leave a broker-dealer and later rejoin the industry within five years and not need to requalify?
Using a maintaining qualification program MQP, a person has five years before being required to requalify by exam
270
Under the code of procedure, the first opportunity to respond is within______ days, and within______ days for the second
Within 25 days and within 14 days for the second
271
Short securities differences will have a 100% haircut (reduction) after how many days have elapsed ?
28 days (increments of seven days)
272
If a non-transferable asset is sold, the carrying BD has_____ business days to pay the client
Five business days
273
What exception allows an underwriting manager to immediately publish research on a company due to a significant event?
The hot news exception
274
What is the trade reporting system for OTC equities ?
Over the counter reporting facility ORF
275
Once placed, a tender offer must remain open for at least _____ business days from the announcement
20 business days
276
What is the SIC?
Securities information center ; created to identify and intercept stolen, forged or missing securities
277
On termination of a registered representatives employment, when must form U5 be filed with FINRA and a copy provided to the RR?
Within 30 days
278
For active accounts, many firms send account Statements_______
Monthly
279
A firm preparing research must disclose whether it received underwriting compensation within the last________ months
Within the last 12 months
280
If an auditor for a member firm finds a deficiency, when must the broker dealer notify the regulators?
A procedural deficiency is reported within 24 hours of discovery
Corrective action plan is sent within 48 hours
281
If a transaction is reported at a clearly erroneous price, when will review and action be taken by FINRA?
Under normal circumstances, within 30 minutes
282
To cover a short sale, investors may not use a new stock issue if the short sale occurred within_______ days of the offer
Within five days of the offer
283
True or false: for a seasoned issuer, a shelf registration becomes effective immediately
False – a seasoned issue may use a shelf registration, but it will be subject to SEC staff review
284
When must a broker dealer buy in the securities if a selling client fails to deliver securities?
No later than 10 business days from settlement of the transaction
285
True or false: CQS transactions must be reported within 10 seconds of completion
True – CQS transactions must be reported within 10 seconds
286
The criminal penalty for insider trading by an individual is a maximum of $______ And/or ______ years in prison
$5 million and or 20 years in prison
287
The_____ is the office providing final approval of retail communication
The OSJ- office of supervisory jurisdiction
288
For how long must a prospectus be provided in the aftermarket for a non-exchange follow on offering?
40 days
289
Retail communication concerning an investment company must be filed with FINRA within______ days of use
10 business days of use
290
An RR Leaves his firm to join the military. After being discharged, his special and active status continues for_____days
90 days
291
Letters of intent may be backdated for ______ days
90 days
292
An established customers one that has traded with a firm for more than _____year
One year
293
An established customers one that has traded with a firm for more than _____year
One year
294
True or false: after completing a 20 business day suspension as a market maker, a firm may immediately begin quoting the stock
False – the firm must reapply, and once its application is approved, it may begin quoting on the same day
295
Under the TCPA, an existing relationship exists if a client has engaged in transactions within_______ months
18 months
296
Once a TRACE report is made , when is the information available to the public?
Immediately
297
Retail communication for collateralized mortgage obligations CMOs must be filed within______ business days of use
10 business days of use
298
What two situations would require a trade to be reported to TRACE within 15 minutes of the next TRACE opening?
A trait occurs within 15 minutes of TRACE closing or a trade occurs when TRACE is not open
299
When must trades executed between 8am and 8pm be reported ?
Within 10 seconds of execution
300
True or false: the ex dividend date is on the same date as the record date
True
301
When must final settlement of a syndicate occur?
Within 90 days of the syndicate closing
302
What system is used for reporting corporate bond trades?
TRACE
303
Form U5 is filed with F INRA within _____ days of resignation or termination of association with a member firm
30 days
304
Once notified that taping is required, firms have_____ days to start taping, and tapes are retained for_____years
60 days and 3 years
305
For a WKSI, a shelf registration becomes effective_______
Immediately
306
List some records that must be maintained for three years
Trade tickets, confirms, trial, balances, retail communication, correspondence, and employee records
307
Form U5 must be retained by member for_____ years
Three years
308
For an order to NOT be adjusted, it must be marked________
Do not reduce DNR
309
Broker dealers are required to monitor the status of all fully paid and excess margin securities on a______basis
Daily
310
What is SIPC?
Securities investor protection corporation
SIPC protects separate customers in the event of broker dealer bankruptcy
311
If a broker dealers investment company communications do not include self created rankings, when must they be filed with FINRA?
Within 10 business days of first use
312
Under portfolio margin rules, margin requests must be satisfied within_____ business days of request
Three business days
313
Customers are given_____ business days after settlement date to pay for their portion of a trade (I.e. S+___ or T+___)
Two business days
S+2 or T+3
314
Within what period must any required adjustment be made to a firm’s Fidelity bond?
Within 60 days of the anniversary of posting the bond
315
When I request to transfer an account is received, how long does the firm have to validate or protest the transfer?
One business day
316
What is the penalty for a voluntary withdrawal as an NASDAQ market maker?
A 20 business day suspension from quoting that security
317
The industry minimum maintenance requirement for a long account is____%
25%- equity must be at least 25% of LMV
318
A person has been registered for nine years. When is she subject to her next regulatory element of continuing education?
December 31 of the current year
319
A carrying broker dealer must file FOCUS report part l________
Monthly
320
Complete the statement: an ad referring to a six-year-old funds ranking based on total return must referred to_________
The total return for the one and five-year periods by the same ranking entity
321
Mutual funds are required to provide a______ report to their shareholders
Semi annual
322
Generally, TRACE reporting is required within______ minutes of the trade
Within 15 minutes
323
The SEC may suspend trading for up to______ business days for an individual issue
Up to 10 business days
324
If an associate request a copy of his U5 how long does the member firm have to respond?
Responses must be made within two business days of request
325
Though acting in good faith, a customer sells securities, but does not deliver. When was the broker dealer close out the trade?
All fails to deliver must be closed out within 35 calendar days
326
What are the system hours of operation for the ADF?
8 AM to 6:30 PM ET
327
If securities are in transit and are identified as such, the buy in will be delayed for______ calendar days
Seven days
328
Customer confirmations must be maintained for_____ years
Three years
329
According to NYSE rules, if the S&P 500 falls by 7% from the previous days close, trading will halt for______ minutes
It will halt for 15 minutes
330
True or false: an office of supervisory jurisdiction OSJ is inspected monthly
False –OSJ are inspected annually
331
Firms subject to the taping rule must commence taping phone calls within_____ days
Within 60 days
332
In order to NOT file form 211, no more than_______ business days may have elapsed without a quote for the stock
No more than four business days
333
How often are the circuit breakers that are used to determine the triggering of a trading halt reset?
Daily
334
A broker dealer may allow a selling client up to______ business days from______ to deliver the securities before closing out
A broker dealer may allow us selling client up to 10 business days from settlement to deliver the securities before closing out
335
If an error has been identified in a report that submitted by a firm into the consolidated audit trail, CAT system, it must be corrected by:
8 AM ET on the third business day following the trade
336
Under portfolio margining rules, maintenance calls are due within __________ business days
3 business days
337
The purchase and sales blotter must be retained for _______
6 years
338
Regulation M notice is required to be filed with FINRA by no later than__________ business day prior to the start of the restricted period
One business day
339
a DK notice must be sent by the receiving firm within______
One business day
340
A broker dealer has received a complaint, which indicates that one of its representatives has stolen securities from a client. This complaint requires the firm to notify FINRA within______ days
30 days
341
According to FINRA’s uniform practice code, a buy-in can occur no sooner than____ business days following the settlement day
3 business days
342
Market centers are required to report the percentage of trades that received price improvement______
Monthly
343
When is the last time a market on open (MOO) can be updated ?
9:28am
344
A carrying broker dealer that receives or holds customer funds and securities is required to maintain a minimum net capital of:
$250,000
345
According to the Bank Secrecy Act BSA, firms must file BCTRs within ______ days
15 days
346
According to the Bank Secrecy Act BSA, firms must file SARs within ______ days
30 days
347
_____ securities are not subject to the 5% policy
IPOs
348
A client received an instant message from her registered representative, which suggests that she consider rebalancing her portfolio based on his latest analysis the RR’s instant message is considered ________ communication and ______ by her principal
Correspondence and reviewed by her principal
349
The ACAT system is most likely used to transfer _____ because most common stocks are transferable in the ACAT system
Penny stocks
350
Any unsatisfied judgments or liens against RRs must be disclosed to FINRA within ______ days and disclosed in form U4
30 days
351
A client who has a portfolio margin account receives a maintenance call as a result of an unfavorable market move. This maintenance call is due within ______ business days
Three business days
352
An issuer is required to provide an annual proxy statement to shareholders at least _________ days prior to the meeting
20 CALENDAR days
353
Under SRO rules, how many business days does a firm have to resolve a discrepancy on a transfer from a transfer request ?
5 business days
354
A clearing firm that engages in best efforts underwritings is required to have a minimum net capital of:
$250,000
355
If a customer executes an equity trade in a cash account, Reg T requires the BD to obtain payment on a _________ basis
T +3
356
Broker dealer A is an introducing firm that has a trading desk. It typically provides the DTC number of its clearing firm to trade counterparties. This is a ______
Give up
A member may, by agreement, permit another member to report and lock in trades on its behalf
357
If a storyboard has been filed, when must the final version of a TV or video advertisement be filed with an SRO?
Within 10 business days of initial broadcast
358
The ____________ must sign the account form
Supervising principal
359
True or false: investment company retail communication that contains performance figures is considered a prospectus
True
360
If variable product retail communication, mentions liquidity, what must also be described?
Any potential fees or expenses
361
If variable product retail communication, mentions liquidity, what must also be described?
Any potential fees or expenses
