Series 24
When should Fidelity bond coverage be reviewed? - correct answer ✔✔reviewed 60 days before the
anniversary date
File time for subordinated loan agreements? - correct answer ✔✔10 days before the effective date
Who do we file subordinated agreements with? - correct answer ✔✔FINRA
How many temporary subordinated loan agreements can we have per year? - correct answer ✔✔3 loans
in any 12 month period
Maximum duration of temporary subordinated loan agreements? - correct answer ✔✔45 days
Net capital requirements for a market maker(mm)? - correct answer ✔✔Minimum is $100K or greater of
$1K per stock less than $5 & $2,500 for stock over $5
Suspension, termination for cause, the withholding of commissions in excess of $2,500, or the imposition
of a fine in excess of $2,500 all require that FINRA be promptly notified within how many days? - correct
answer ✔✔Immediately but within 30 Business days
Trace does not report - correct answer ✔✔Municipal Bonds
If a selling member fails to deliver on settlement date, the security can be bought in by the buying
member no sooner than how many business days after settlement date? + is written notice required? If
so, when? (fail to deliver) - correct answer ✔✔3 days (settlement/business days)
and written notice must be given. The written notice can be given as soon as the business day after
settlement, and the buy-in can be effected no sooner than 2 business days after written notice.
,SMA is ____x the buying power in an account? - correct answer ✔✔2x the buying power in an account
How long can a we place a hold on an account due to abuse/suspected fraud - correct answer ✔✔15
plus 10 is extended for a total of 25 days
The request for adjustment or nullification must be made within how many minutes of the execution?
Any appeal of Nasdaq's decision must be made within how many minutes of receiving the decision? -
correct answer ✔✔- 30 minutes
- 30 minutes
Long-term capital gains by investment companies are distributed? - correct answer ✔✔Annually
When can the selling group be formed? - correct answer ✔✔After the registration statement is filed w/
the SEC
When is a member that participates in a public offering is required to file the registration statement and
documents relevant to underwriting terms and arrangements with FINRA? - correct answer ✔✔no later
than 3 business days after any documents are filed with or submitted to the SEC.
According to the Investment Company Act of 1940, the maximum life of an investment advisory contract
and an underwriting contract is? - correct answer ✔✔2 years and must be re-approved annually either
by the board or majority shareholder vote.
Under SEC rules, a carrying firm must determine if there is any excess or deficit in customer segregation
accounts? - correct answer ✔✔Daily
When one party to a trade (the confirming member) sends a confirmation but does not receive one in
return, the confirming member must send a don't know (DK) notice to the nonconfirming member by? -
correct answer ✔✔close of one business day following the trade date of the transaction
What system is a customizable order routing system that allows order entry firms to route orders into
the internal trading systems of market making firms with whom they have arrangements? - correct
answer ✔✔ACES
, Do the market makers that receive orders through ACES have to pay a fee? - correct answer ✔✔Yes
Name 3 non-allowable (illiquid) assets? - correct answer ✔✔Exchange memberships, equity in real
estate, and goodwill
15c3-3 (per Knopman we should know this rule by number) - correct answer ✔✔concerned primarily
with the reserves a member has available and regulations governing the care and safekeeping of
customer securities
Representations obtained to determine the eligibility of an account to purchase a new equity issue must
be retained for? - correct answer ✔✔3 years
when does FINRA disseminate information on all transactions in TRACE-Eligible Securities? - correct
answer ✔✔Immediately
Transactions in TRACE-eligible securities must be reported by? - correct answer ✔✔each member that is
a party to a transaction within 15 minutes of the time of executio
BDs who participate in a commission recapture program have to maintain a net capital amount of? -
correct answer ✔✔$250,000
Nonattributable (not displayed) interest may be shown anonymously using the MPID of? - correct
answer ✔✔NSDQ
Forward looking statements may be used in? (3) - correct answer ✔✔-prospectuses
- Proxy material
- Annual Reports
(APP)
Short positions in Nasdaq securities must be reported to FINRA - correct answer ✔✔twice a month
When should Fidelity bond coverage be reviewed? - correct answer ✔✔reviewed 60 days before the
anniversary date
File time for subordinated loan agreements? - correct answer ✔✔10 days before the effective date
Who do we file subordinated agreements with? - correct answer ✔✔FINRA
How many temporary subordinated loan agreements can we have per year? - correct answer ✔✔3 loans
in any 12 month period
Maximum duration of temporary subordinated loan agreements? - correct answer ✔✔45 days
Net capital requirements for a market maker(mm)? - correct answer ✔✔Minimum is $100K or greater of
$1K per stock less than $5 & $2,500 for stock over $5
Suspension, termination for cause, the withholding of commissions in excess of $2,500, or the imposition
of a fine in excess of $2,500 all require that FINRA be promptly notified within how many days? - correct
answer ✔✔Immediately but within 30 Business days
Trace does not report - correct answer ✔✔Municipal Bonds
If a selling member fails to deliver on settlement date, the security can be bought in by the buying
member no sooner than how many business days after settlement date? + is written notice required? If
so, when? (fail to deliver) - correct answer ✔✔3 days (settlement/business days)
and written notice must be given. The written notice can be given as soon as the business day after
settlement, and the buy-in can be effected no sooner than 2 business days after written notice.
,SMA is ____x the buying power in an account? - correct answer ✔✔2x the buying power in an account
How long can a we place a hold on an account due to abuse/suspected fraud - correct answer ✔✔15
plus 10 is extended for a total of 25 days
The request for adjustment or nullification must be made within how many minutes of the execution?
Any appeal of Nasdaq's decision must be made within how many minutes of receiving the decision? -
correct answer ✔✔- 30 minutes
- 30 minutes
Long-term capital gains by investment companies are distributed? - correct answer ✔✔Annually
When can the selling group be formed? - correct answer ✔✔After the registration statement is filed w/
the SEC
When is a member that participates in a public offering is required to file the registration statement and
documents relevant to underwriting terms and arrangements with FINRA? - correct answer ✔✔no later
than 3 business days after any documents are filed with or submitted to the SEC.
According to the Investment Company Act of 1940, the maximum life of an investment advisory contract
and an underwriting contract is? - correct answer ✔✔2 years and must be re-approved annually either
by the board or majority shareholder vote.
Under SEC rules, a carrying firm must determine if there is any excess or deficit in customer segregation
accounts? - correct answer ✔✔Daily
When one party to a trade (the confirming member) sends a confirmation but does not receive one in
return, the confirming member must send a don't know (DK) notice to the nonconfirming member by? -
correct answer ✔✔close of one business day following the trade date of the transaction
What system is a customizable order routing system that allows order entry firms to route orders into
the internal trading systems of market making firms with whom they have arrangements? - correct
answer ✔✔ACES
, Do the market makers that receive orders through ACES have to pay a fee? - correct answer ✔✔Yes
Name 3 non-allowable (illiquid) assets? - correct answer ✔✔Exchange memberships, equity in real
estate, and goodwill
15c3-3 (per Knopman we should know this rule by number) - correct answer ✔✔concerned primarily
with the reserves a member has available and regulations governing the care and safekeeping of
customer securities
Representations obtained to determine the eligibility of an account to purchase a new equity issue must
be retained for? - correct answer ✔✔3 years
when does FINRA disseminate information on all transactions in TRACE-Eligible Securities? - correct
answer ✔✔Immediately
Transactions in TRACE-eligible securities must be reported by? - correct answer ✔✔each member that is
a party to a transaction within 15 minutes of the time of executio
BDs who participate in a commission recapture program have to maintain a net capital amount of? -
correct answer ✔✔$250,000
Nonattributable (not displayed) interest may be shown anonymously using the MPID of? - correct
answer ✔✔NSDQ
Forward looking statements may be used in? (3) - correct answer ✔✔-prospectuses
- Proxy material
- Annual Reports
(APP)
Short positions in Nasdaq securities must be reported to FINRA - correct answer ✔✔twice a month
