Random #15

Question 1

Is a commercial bank considered an investment co?

Answer 1

NO

Question 2

What is typical true of guarantee language?

Answer 2

You cannot guarantee a rate of return, only that a client will receive their principal and interest should they hold a government bond to its maturity (termination) date. That means securities professionals cannot make any kind of promises about any investment’s potential growth, its safety, or the level of performance a client’s portfolio will experience in general if the client works with that professional.

Question 3

SEC Rule 10b-10:

Answer 3

It requires broker-dealers to send written confirmation for any transaction in a customer’s account detailing date and time of the transaction, the actual security, number of shares, and the price of securities bought or sold.

Question 4

FINRA will begin an investigation into a complaint against a firm by notifying the member that a complaint has been received and will request the member or an associated person to respond in writing in how many days from the day that the request was made?

Answer 4

25 days

Question 5

12b-1?

Answer 5

The 12b-1 fee is a distribution fee. The distribution fee on a mutual fund

Question 6

Omitting Prospectus

Answer 6

an advertisement for a mutual fund that typically shows performance figures without providing the full disclosure in the prospectus.

Question 7

Two types of qualified retirement plans?

Answer 7

Defined benefit and defined contribution

Question 8

Wash-trading

Answer 8

a form of market manipulation in which an entity simultaneously sells and buys the same financial instruments,