SIE Exam Unit 1 (Questions with complete answers)

The securities industry's primary regulatory body and created under what act? correct answers SEC, Securities Exchange Act of 1934 Function under the SEC's oversight and is accountable to the Commission for enforcing federal securities laws, as well as supervising securities practices within an assigned jurisdiction. correct answers Self Regulatory organizations (SRO) what are the largest SROs correct answers Financial Industry Regulation Authority (FINRA), Chicago Board Options Exchange (CBOE), Municipal Securities Rulemaking Board (MSRB) Members pay assessments into a general insurance fund that is used to meet customer claims in the event of a broker-dealer bankruptcy. correct answers Securities Investor Protection Act and Corporation (SIPC) All BD registered with the SEC must be SIPC members except which three? correct answers 1. banks deal with munis, 2. firms deal with US govt securities deal with redeemable investment co securities has a net worth of $1 million or more or has had an annual income of $200k or more in each of the two most recent years correct answers accredited investor this type of BD offers all types of investment products ie stocks, bonds, mutual funds, options, and many others correct answers full service BD this BD incorporates proprietary trading, where they trade in the account of the BD this is known as what correct answers market making this firm carries customer accounts and accepts funds and securites from customers correct answers carrying firm