Exam 10 series 24 wrong answers
If there is a deficiency in a portfolio margin account, the customer has how
many business days to meet the margin call?
The portfolio margin rules of FINRA require that margin calls be met in 3
business days.
Note that this contrasts with Regulation T, which requires that margin calls be
met "promptly," but no later than 5 business days after the call date.
A customer shorts stock prior to the ex-date. Who will receive the dividend
from the issuer?
The buyer of the shares
Note that the lender of the shares will receive a "payment in lieu of the
dividend" from the borrower of the shares, but the question asks who will
receive the dividend payment from the issuer.)
An employee of FINRA wishes to open an account at a member firm. This
action is:
permitted only if the employee discloses this to FINRA and authorizes that
duplicate statements be sent to FINRA
A carrying firm that is engaged in market making makes a market in 50 stocks
valued at more than $5 bid. The firm's minimum net capital requirement is:
, 250,000 because its a clearing broker
As a general rule, representatives cannot borrow money from, nor can they
lend money to, customers. However, an exception is given if the customer is
an immediate family member (and FINRA defines cousins in this rule as
immediate family!). But
FINRA states that, first, the firm must have written policies and procedures
allowing borrowing and lending by representatives and their customers.
An adverse ruling in a complaint regarding Nasdaq System practices being
handled under the Code of Arbitration may or may not be appealed?
May not be appealed
The Federal Reserve regulation that governs lending on securities to U.S.
persons by non US lenders:
Regulation X
Regulation X is the Federal Reserve's attempt to nail individuals who try to get
around the provisions of Regulation T and Regulation U by placing the
requirement for compliance on the borrower instead of the lender. What led to
this rule is that people in the U.S. were obtaining loans on securities from
foreign lenders who were not subject to Federal Reserve rules. By placing the
compliance obligation on the borrower, as long as the borrower is a U.S.
person, Regulation X requires that the provisions of Regulation T and
Regulation U be followed.
If there is a deficiency in a portfolio margin account, the customer has how
many business days to meet the margin call?
The portfolio margin rules of FINRA require that margin calls be met in 3
business days.
Note that this contrasts with Regulation T, which requires that margin calls be
met "promptly," but no later than 5 business days after the call date.
A customer shorts stock prior to the ex-date. Who will receive the dividend
from the issuer?
The buyer of the shares
Note that the lender of the shares will receive a "payment in lieu of the
dividend" from the borrower of the shares, but the question asks who will
receive the dividend payment from the issuer.)
An employee of FINRA wishes to open an account at a member firm. This
action is:
permitted only if the employee discloses this to FINRA and authorizes that
duplicate statements be sent to FINRA
A carrying firm that is engaged in market making makes a market in 50 stocks
valued at more than $5 bid. The firm's minimum net capital requirement is:
, 250,000 because its a clearing broker
As a general rule, representatives cannot borrow money from, nor can they
lend money to, customers. However, an exception is given if the customer is
an immediate family member (and FINRA defines cousins in this rule as
immediate family!). But
FINRA states that, first, the firm must have written policies and procedures
allowing borrowing and lending by representatives and their customers.
An adverse ruling in a complaint regarding Nasdaq System practices being
handled under the Code of Arbitration may or may not be appealed?
May not be appealed
The Federal Reserve regulation that governs lending on securities to U.S.
persons by non US lenders:
Regulation X
Regulation X is the Federal Reserve's attempt to nail individuals who try to get
around the provisions of Regulation T and Regulation U by placing the
requirement for compliance on the borrower instead of the lender. What led to
this rule is that people in the U.S. were obtaining loans on securities from
foreign lenders who were not subject to Federal Reserve rules. By placing the
compliance obligation on the borrower, as long as the borrower is a U.S.
person, Regulation X requires that the provisions of Regulation T and
Regulation U be followed.
