TITLE: EMILLYCHARLOTTE 2024/2025 ACADEMIC PERIOD
OWNER: EMILLYCHARLOTTE
COPYRIGHT STATEMENT: ©2024 EMILLYCHARLOTTE. ALL RIGHTS RESERVED
FIRST PUBLISHED: SEPTEMBER 2024
Securities Industry Essentials Exam
Study Guide with Complete Solutions
Broker-Dealer that doesn't comply is subject to: - ✔️✔️Correct--censure
-limits on activities
-suspension
-revocation of reg
-fine
FINRA - ✔️✔️Correct-regulates all matters related to investment banking, trading in the
OTC market, trading in the NYSE listed securities, and the conduct of FINRA member
firms and associated persons
FINRA Purpose - ✔️✔️Correct--promote investment banking and securities business
-provide medium for communication among its members
-adopt, admin, and enforce rules designed to prevent fraud
-promote self-discipline among members
MSRB (MUNICIPAL SECURITIES REGULATORY BOARD) - ✔️✔️Correct--regulates all
matters related to the underwriting and trading of state and municipal securities
-depends on other SROs for enforcement ability
Federal Reserve - ✔️✔️Correct--12 regional Fed reserve banks and hundreds of national
and state banks that belong to the system
1/17
,TITLE: EMILLYCHARLOTTE 2024/2025 ACADEMIC PERIOD
OWNER: EMILLYCHARLOTTE
COPYRIGHT STATEMENT: ©2024 EMILLYCHARLOTTE. ALL RIGHTS RESERVED
FIRST PUBLISHED: SEPTEMBER 2024
-determines monetary policy and takes actions to implement policies including 1. acting
as an agent of treasury 2. regulating US money supply 3. setting reserve requirements
4. supervising the printing of currency 5. clearing fund transfers
Securities Investor Protection Corporation (SIPC) - ✔️✔️Correct--a nonprofit corporation,
created by Congress and subject to SEC and congressional oversight, that insures
customer accounts against the financial failure of a brokerage firm
-basic coverage under is no more than 500k per separate customer
Federal Deposit Insurance Corporation (FDIC) - ✔️✔️Correct--the government agency
that insures customer deposits if a bank fails
-accounts covered up to 250k
Accredited Investor - ✔️✔️Correct--has a net worth of 1 million or more, not including net
equity
-has had an annual income of 200k or more in each of the two most recent years
Carrying Firm - ✔️✔️Correct--carries customer accounts and accepts funds and
securities from customers
-largest broker-dealers
fully disclosed firm - ✔️✔️Correct--a firm that introduces into customers to a clearing firm
prime account - ✔️✔️Correct--type of account that allows a customer to select one
member firm to provide custody and other services while other firms-called executing
brokers-handle all trades placed
2/17
, TITLE: EMILLYCHARLOTTE 2024/2025 ACADEMIC PERIOD
OWNER: EMILLYCHARLOTTE
COPYRIGHT STATEMENT: ©2024 EMILLYCHARLOTTE. ALL RIGHTS RESERVED
FIRST PUBLISHED: SEPTEMBER 2024
-key advantage is that it usually provides a client with the ability to trade with multiple
brokerage houses
Municipal Advisor - ✔️✔️Correct--provides advice with respect to municipal products or
the issuance of municipal securities, including advice with respect to structure, timing,
terms, and other similar matters
Transfer Agents - ✔️✔️Correct--ensures securities are issued in the correct owners name
-cancels all old and issues new certificates
-maintain records of ownership
-handle problems related to lost, stolen or destroyed certificates
primary market - ✔️✔️Correct-market for selling financial assets that can only be
redeemed by the original holder
Third Market - ✔️✔️Correct-off-exchange market for securities listed on an organized
exchange
Fourth Market - ✔️✔️Correct--market for institutional investors in which large blocks of
stock, both listed and unlisted trade in transactions unassisted by broker-dealers
Federal Reserve affects money supply through: - ✔️✔️Correct--open-market operations
-changes in the discount rate
-changes in reserve requirements
Keynesian economics - ✔️✔️Correct--active government involvement is vital
-government affects levels of spending and saving by taxes
3/17
OWNER: EMILLYCHARLOTTE
COPYRIGHT STATEMENT: ©2024 EMILLYCHARLOTTE. ALL RIGHTS RESERVED
FIRST PUBLISHED: SEPTEMBER 2024
Securities Industry Essentials Exam
Study Guide with Complete Solutions
Broker-Dealer that doesn't comply is subject to: - ✔️✔️Correct--censure
-limits on activities
-suspension
-revocation of reg
-fine
FINRA - ✔️✔️Correct-regulates all matters related to investment banking, trading in the
OTC market, trading in the NYSE listed securities, and the conduct of FINRA member
firms and associated persons
FINRA Purpose - ✔️✔️Correct--promote investment banking and securities business
-provide medium for communication among its members
-adopt, admin, and enforce rules designed to prevent fraud
-promote self-discipline among members
MSRB (MUNICIPAL SECURITIES REGULATORY BOARD) - ✔️✔️Correct--regulates all
matters related to the underwriting and trading of state and municipal securities
-depends on other SROs for enforcement ability
Federal Reserve - ✔️✔️Correct--12 regional Fed reserve banks and hundreds of national
and state banks that belong to the system
1/17
,TITLE: EMILLYCHARLOTTE 2024/2025 ACADEMIC PERIOD
OWNER: EMILLYCHARLOTTE
COPYRIGHT STATEMENT: ©2024 EMILLYCHARLOTTE. ALL RIGHTS RESERVED
FIRST PUBLISHED: SEPTEMBER 2024
-determines monetary policy and takes actions to implement policies including 1. acting
as an agent of treasury 2. regulating US money supply 3. setting reserve requirements
4. supervising the printing of currency 5. clearing fund transfers
Securities Investor Protection Corporation (SIPC) - ✔️✔️Correct--a nonprofit corporation,
created by Congress and subject to SEC and congressional oversight, that insures
customer accounts against the financial failure of a brokerage firm
-basic coverage under is no more than 500k per separate customer
Federal Deposit Insurance Corporation (FDIC) - ✔️✔️Correct--the government agency
that insures customer deposits if a bank fails
-accounts covered up to 250k
Accredited Investor - ✔️✔️Correct--has a net worth of 1 million or more, not including net
equity
-has had an annual income of 200k or more in each of the two most recent years
Carrying Firm - ✔️✔️Correct--carries customer accounts and accepts funds and
securities from customers
-largest broker-dealers
fully disclosed firm - ✔️✔️Correct--a firm that introduces into customers to a clearing firm
prime account - ✔️✔️Correct--type of account that allows a customer to select one
member firm to provide custody and other services while other firms-called executing
brokers-handle all trades placed
2/17
, TITLE: EMILLYCHARLOTTE 2024/2025 ACADEMIC PERIOD
OWNER: EMILLYCHARLOTTE
COPYRIGHT STATEMENT: ©2024 EMILLYCHARLOTTE. ALL RIGHTS RESERVED
FIRST PUBLISHED: SEPTEMBER 2024
-key advantage is that it usually provides a client with the ability to trade with multiple
brokerage houses
Municipal Advisor - ✔️✔️Correct--provides advice with respect to municipal products or
the issuance of municipal securities, including advice with respect to structure, timing,
terms, and other similar matters
Transfer Agents - ✔️✔️Correct--ensures securities are issued in the correct owners name
-cancels all old and issues new certificates
-maintain records of ownership
-handle problems related to lost, stolen or destroyed certificates
primary market - ✔️✔️Correct-market for selling financial assets that can only be
redeemed by the original holder
Third Market - ✔️✔️Correct-off-exchange market for securities listed on an organized
exchange
Fourth Market - ✔️✔️Correct--market for institutional investors in which large blocks of
stock, both listed and unlisted trade in transactions unassisted by broker-dealers
Federal Reserve affects money supply through: - ✔️✔️Correct--open-market operations
-changes in the discount rate
-changes in reserve requirements
Keynesian economics - ✔️✔️Correct--active government involvement is vital
-government affects levels of spending and saving by taxes
3/17
