TITLE: EMILLYCHARLOTTE 2024/2025 ACADEMIC PERIOD
OWNER: EMILLYCHARLOTTE
COPYRIGHT STATEMENT: ©2024 EMILLYCHARLOTTE. ALL RIGHTS RESERVED
FIRST PUBLISHED: SEPTEMBER 2024
Regulations: FINRA Rules Exam
Questions and Answers | 100% Pass
FINRA enforces regulations in which of the following markets?
I. first market
II. second market
III. third market
IV. fourth market - Answer✔️✔️-All of them
To take a second job, under FINRA rules, a registered rep must obtain prior written
approval from (the):
a. FINRA
b. SEC
c. branch manager
d. financial and operations principal - Answer✔️✔️-branch manager
Under FINRA rules, a registered rep:
a. may borrow money from a customer only with permission of FINRA
b. may borrow money from a customer only with permission of the branch manager
c. may borrow money from a customer only with permission of the customer
d. may not borrow money from a customer - Answer✔️✔️-may not borrow money from a
customer
1/44
,TITLE: EMILLYCHARLOTTE 2024/2025 ACADEMIC PERIOD
OWNER: EMILLYCHARLOTTE
COPYRIGHT STATEMENT: ©2024 EMILLYCHARLOTTE. ALL RIGHTS RESERVED
FIRST PUBLISHED: SEPTEMBER 2024
A registered rep takes a customer out to dinner and a show, spending $180. This
activity is:
a. a violation of FINRA rules
b. permitted because less than $100 was spent on a per-person basis
c. permitted if it complies with the firm's policies and procedures
d. permitted under all circumstances - Answer✔️✔️-permitted if it complies with the firm's
policies and procedures
A registered rep has written a research report about oil stocks that he wishes to mail to
customers. Which statement is TRUE?
a. the report must be approved by the SEC
b. the report must be approved by a supervisory analyst
c. the report must be approved by FINRA
d. no prior approval is required - Answer✔️✔️-the report must be approved by a
supervisory analyst
Arbitration is preferred over litigation as a means for settling disputes because:
a. it is less time consuming and less expensive
b. it allows the parties involved to get a hearing of their grievances
c. the decision cannot be appealed
d. the arbitration panel is more knowledgeable about industry practices - Answer✔️✔️-it is
less time consuming and less expensive
Notification to FINRA is required for all of the following EXCEPT:
2/44
,TITLE: EMILLYCHARLOTTE 2024/2025 ACADEMIC PERIOD
OWNER: EMILLYCHARLOTTE
COPYRIGHT STATEMENT: ©2024 EMILLYCHARLOTTE. ALL RIGHTS RESERVED
FIRST PUBLISHED: SEPTEMBER 2024
a. a written customer complaint is received about a registered employee
misappropriating customer funds
b. a registered representative is arrested for assault and battery
c. a registered rep is committed to a mental institution
d. a registered rep is indicted under the Securities Exchange Act of 1934 for "insider
trading" violations - Answer✔️✔️-a registered rep is committed to a mental institution
If a brokerage firm receives a written customer complaint, then:
a. the complaint must be forwarded to the firm's self regulatory organization (SRO) for
resolution
b. the firm must resolve the complaint and keep a separate file of the complaints, with
action taken, for inspection by the SRO
c. the registered rep is responsible for resolving the customer complaint and keeping
the records of actions taken
d. no action need be taken unless the customer has also complained directly to the self
regulatory organization - Answer✔️✔️-the firm must resolve the complaint and keep a
separate file of the complaints, with action taken, for inspection by the SRO
The FINRA 5% policy requires that consideration be given to all of the following when
determining mark-ups and commissions EXCEPT:
a. financial condition of customer
b. dollar amount of the transaction
c. level of service provided by the firm
3/44
, TITLE: EMILLYCHARLOTTE 2024/2025 ACADEMIC PERIOD
OWNER: EMILLYCHARLOTTE
COPYRIGHT STATEMENT: ©2024 EMILLYCHARLOTTE. ALL RIGHTS RESERVED
FIRST PUBLISHED: SEPTEMBER 2024
d. type of security involved in the transaction - Answer✔️✔️-financial condition of
customer
FINRA's 5% policy applies to which of the following?
a. sales charges on mutual fund offering
b. mark-ups charged on principal transactions of municipal bonds
c. underwritings spreads charged on new issue offerings effected over-the-counter
d. commissions charged on transactions effected over-the-counter - Answer✔️✔️-
commissions charged on transactions effected over-the-counter
An order ticket is filled out and sent to the NYSE floor for execution. After being
executed on the floor, it is discovered that the account number is incorrect. Under
FINRA rules, the account number may be changed to the correct one by the:
a. registered rep
b. specialist
c. branch office manager
d. floor governor - Answer✔️✔️-branch office manager
Under FINRA rules, copies of order tickets must be kept for:
a. 6 months
b. 2 years
c. 3 years
d. 5 years - Answer✔️✔️-3 years
d. 5 years
4/44
OWNER: EMILLYCHARLOTTE
COPYRIGHT STATEMENT: ©2024 EMILLYCHARLOTTE. ALL RIGHTS RESERVED
FIRST PUBLISHED: SEPTEMBER 2024
Regulations: FINRA Rules Exam
Questions and Answers | 100% Pass
FINRA enforces regulations in which of the following markets?
I. first market
II. second market
III. third market
IV. fourth market - Answer✔️✔️-All of them
To take a second job, under FINRA rules, a registered rep must obtain prior written
approval from (the):
a. FINRA
b. SEC
c. branch manager
d. financial and operations principal - Answer✔️✔️-branch manager
Under FINRA rules, a registered rep:
a. may borrow money from a customer only with permission of FINRA
b. may borrow money from a customer only with permission of the branch manager
c. may borrow money from a customer only with permission of the customer
d. may not borrow money from a customer - Answer✔️✔️-may not borrow money from a
customer
1/44
,TITLE: EMILLYCHARLOTTE 2024/2025 ACADEMIC PERIOD
OWNER: EMILLYCHARLOTTE
COPYRIGHT STATEMENT: ©2024 EMILLYCHARLOTTE. ALL RIGHTS RESERVED
FIRST PUBLISHED: SEPTEMBER 2024
A registered rep takes a customer out to dinner and a show, spending $180. This
activity is:
a. a violation of FINRA rules
b. permitted because less than $100 was spent on a per-person basis
c. permitted if it complies with the firm's policies and procedures
d. permitted under all circumstances - Answer✔️✔️-permitted if it complies with the firm's
policies and procedures
A registered rep has written a research report about oil stocks that he wishes to mail to
customers. Which statement is TRUE?
a. the report must be approved by the SEC
b. the report must be approved by a supervisory analyst
c. the report must be approved by FINRA
d. no prior approval is required - Answer✔️✔️-the report must be approved by a
supervisory analyst
Arbitration is preferred over litigation as a means for settling disputes because:
a. it is less time consuming and less expensive
b. it allows the parties involved to get a hearing of their grievances
c. the decision cannot be appealed
d. the arbitration panel is more knowledgeable about industry practices - Answer✔️✔️-it is
less time consuming and less expensive
Notification to FINRA is required for all of the following EXCEPT:
2/44
,TITLE: EMILLYCHARLOTTE 2024/2025 ACADEMIC PERIOD
OWNER: EMILLYCHARLOTTE
COPYRIGHT STATEMENT: ©2024 EMILLYCHARLOTTE. ALL RIGHTS RESERVED
FIRST PUBLISHED: SEPTEMBER 2024
a. a written customer complaint is received about a registered employee
misappropriating customer funds
b. a registered representative is arrested for assault and battery
c. a registered rep is committed to a mental institution
d. a registered rep is indicted under the Securities Exchange Act of 1934 for "insider
trading" violations - Answer✔️✔️-a registered rep is committed to a mental institution
If a brokerage firm receives a written customer complaint, then:
a. the complaint must be forwarded to the firm's self regulatory organization (SRO) for
resolution
b. the firm must resolve the complaint and keep a separate file of the complaints, with
action taken, for inspection by the SRO
c. the registered rep is responsible for resolving the customer complaint and keeping
the records of actions taken
d. no action need be taken unless the customer has also complained directly to the self
regulatory organization - Answer✔️✔️-the firm must resolve the complaint and keep a
separate file of the complaints, with action taken, for inspection by the SRO
The FINRA 5% policy requires that consideration be given to all of the following when
determining mark-ups and commissions EXCEPT:
a. financial condition of customer
b. dollar amount of the transaction
c. level of service provided by the firm
3/44
, TITLE: EMILLYCHARLOTTE 2024/2025 ACADEMIC PERIOD
OWNER: EMILLYCHARLOTTE
COPYRIGHT STATEMENT: ©2024 EMILLYCHARLOTTE. ALL RIGHTS RESERVED
FIRST PUBLISHED: SEPTEMBER 2024
d. type of security involved in the transaction - Answer✔️✔️-financial condition of
customer
FINRA's 5% policy applies to which of the following?
a. sales charges on mutual fund offering
b. mark-ups charged on principal transactions of municipal bonds
c. underwritings spreads charged on new issue offerings effected over-the-counter
d. commissions charged on transactions effected over-the-counter - Answer✔️✔️-
commissions charged on transactions effected over-the-counter
An order ticket is filled out and sent to the NYSE floor for execution. After being
executed on the floor, it is discovered that the account number is incorrect. Under
FINRA rules, the account number may be changed to the correct one by the:
a. registered rep
b. specialist
c. branch office manager
d. floor governor - Answer✔️✔️-branch office manager
Under FINRA rules, copies of order tickets must be kept for:
a. 6 months
b. 2 years
c. 3 years
d. 5 years - Answer✔️✔️-3 years
d. 5 years
4/44
