Series 24 Exam Questions with
Verified Solutions
Arbitration, FINRA rules require that disputes between firms, a firm and its employee, or
a firm and a clearing corporation, must go to arbitration. What is the exception ? - ANS-
An exception exists when the dispute involves statutory discrimination claims, such as
sexual harassment. The aggrieved party (the employee) may choose mediation, or may
pursue his claim in either arbitration or the court system.
Arbitration, If a signed predispute arbitration clause exists, Can the customer may
require that all claims in the complaint be settled through arbitration? - ANS-Yes, , the
member may compel arbitration on those items. However, if customer requests that all
items be settled through arbitration, even those not included in the predispute arbitration
clause, member must agree to arbitrate all items. There is no a predispute clause
waiver. Mediation is not compulsory for either party. The process is voluntary
OTCBB - ANS-Real time system for MMks to update quotes, 8am to 8pm. Exception
DPPs, 2 times a day 8:30-9:30 and 12-2:30
Arbitration, what is the amount for simplified arbitration ? - ANS-For both industry
arbitration and customer arbitration, disputes of no more than $50,000. As with regular
arbitration, simplified arbitration does not allow appeals. The decision of the single
arbitrator is FINAL
ADF Market Maker Excuse to Withdrawal (5 and up to 60) - ANS-5 business days may
be granted for circumstances beyond the market maker's control ( storm or a sudden
illness).
up to 60 days may be granted for legal or regulatory reasons, documentation is
provided and the condition is not permanent in nature. Holidays and clearing contract
circumstances.
If Market Value in a long margin account decreases, the equity will _______amount.
When the market value in a short margin account increases, the equity will
______________ amount. - ANS-.....decline by an equal amount. .....decrease by a
corresponding
Dissenting limited partners - ANS-Investors who vote against the rollup transaction
The value assigned in the rollup would be considered fair and reasonable if - ANS-
Investors in the new entity receive similar voting rights and have the power to remove
the new general partner
, Dissenting limited partners must receive compensation that is based on an appraisal of
the partnership's assets conducted by an independent appraiser, rather than by the
general partners or an affiliate.
The general partners must use the evaluation standards contained in the limited
partnership agreement to value their interests (if applicable)
and .....employ an independent THIRD PARTY to count limited partners' votes.
Investors in the new entity should have VOTING RIGHTS that are SIMILAR to the ones
that they had in the original entity, including the right to REMOVE the general partner, or
board of directors
A reduction of the credit rating of AN ISSUER RAISING FUNDS through debentures will
increase _____ and decrease_______ - ANS-increase the yield of a new issue of
bonds, and reduce the price of the issue.
A steepening (not a flattening) of the yield curve is an indication of _________ long-term
interest rates. - ANS-higher
An infusion of money supply indicates an easing of credit conditions. ______ yields
would be expected. - ANS-Lower
Higher anticipated demand from investors would likely _____ the bond's yield,
and______the bond's price - ANS-anticipated demand from investors would likely
LOWER the bond's ____, and INCREASE the _____
Purchaser representative - ANS-A person who represents potential NON Accredited
purchasers who are solicited to buy securities under Regulation D (SEC Rules 501-
508).
A PURCHASER REPRESENTATIVE may not be an _____, _____, _____, or _______
of the issuer UNLESS ____________________. The purchaser representative may not
own ___% OR MORE of the stock of the issuer and must be knowledgeable and
experienced in financial and business matters. - ANS-MAY not be affiliate, director,
officer, or employee OF THE ISSUER
UNLESS related to the purchaser by blood, marriage, or adoption
10% or more
The potential purchaser must designate an individual to be a PURCHASER
REPRESENTATIVE in______ for each individual offering.
_________Approval to represent the potential purchaser for all Regulation D offerings is
NOT PERMITTED - ANS-Writing
BLANKED APPROVAL
A corporation is issuing 5,000,000 shares of stock at a public Offering price of $13 per
share. The manager of the underwriting syndicate receives $0.15 per share. The
Verified Solutions
Arbitration, FINRA rules require that disputes between firms, a firm and its employee, or
a firm and a clearing corporation, must go to arbitration. What is the exception ? - ANS-
An exception exists when the dispute involves statutory discrimination claims, such as
sexual harassment. The aggrieved party (the employee) may choose mediation, or may
pursue his claim in either arbitration or the court system.
Arbitration, If a signed predispute arbitration clause exists, Can the customer may
require that all claims in the complaint be settled through arbitration? - ANS-Yes, , the
member may compel arbitration on those items. However, if customer requests that all
items be settled through arbitration, even those not included in the predispute arbitration
clause, member must agree to arbitrate all items. There is no a predispute clause
waiver. Mediation is not compulsory for either party. The process is voluntary
OTCBB - ANS-Real time system for MMks to update quotes, 8am to 8pm. Exception
DPPs, 2 times a day 8:30-9:30 and 12-2:30
Arbitration, what is the amount for simplified arbitration ? - ANS-For both industry
arbitration and customer arbitration, disputes of no more than $50,000. As with regular
arbitration, simplified arbitration does not allow appeals. The decision of the single
arbitrator is FINAL
ADF Market Maker Excuse to Withdrawal (5 and up to 60) - ANS-5 business days may
be granted for circumstances beyond the market maker's control ( storm or a sudden
illness).
up to 60 days may be granted for legal or regulatory reasons, documentation is
provided and the condition is not permanent in nature. Holidays and clearing contract
circumstances.
If Market Value in a long margin account decreases, the equity will _______amount.
When the market value in a short margin account increases, the equity will
______________ amount. - ANS-.....decline by an equal amount. .....decrease by a
corresponding
Dissenting limited partners - ANS-Investors who vote against the rollup transaction
The value assigned in the rollup would be considered fair and reasonable if - ANS-
Investors in the new entity receive similar voting rights and have the power to remove
the new general partner
, Dissenting limited partners must receive compensation that is based on an appraisal of
the partnership's assets conducted by an independent appraiser, rather than by the
general partners or an affiliate.
The general partners must use the evaluation standards contained in the limited
partnership agreement to value their interests (if applicable)
and .....employ an independent THIRD PARTY to count limited partners' votes.
Investors in the new entity should have VOTING RIGHTS that are SIMILAR to the ones
that they had in the original entity, including the right to REMOVE the general partner, or
board of directors
A reduction of the credit rating of AN ISSUER RAISING FUNDS through debentures will
increase _____ and decrease_______ - ANS-increase the yield of a new issue of
bonds, and reduce the price of the issue.
A steepening (not a flattening) of the yield curve is an indication of _________ long-term
interest rates. - ANS-higher
An infusion of money supply indicates an easing of credit conditions. ______ yields
would be expected. - ANS-Lower
Higher anticipated demand from investors would likely _____ the bond's yield,
and______the bond's price - ANS-anticipated demand from investors would likely
LOWER the bond's ____, and INCREASE the _____
Purchaser representative - ANS-A person who represents potential NON Accredited
purchasers who are solicited to buy securities under Regulation D (SEC Rules 501-
508).
A PURCHASER REPRESENTATIVE may not be an _____, _____, _____, or _______
of the issuer UNLESS ____________________. The purchaser representative may not
own ___% OR MORE of the stock of the issuer and must be knowledgeable and
experienced in financial and business matters. - ANS-MAY not be affiliate, director,
officer, or employee OF THE ISSUER
UNLESS related to the purchaser by blood, marriage, or adoption
10% or more
The potential purchaser must designate an individual to be a PURCHASER
REPRESENTATIVE in______ for each individual offering.
_________Approval to represent the potential purchaser for all Regulation D offerings is
NOT PERMITTED - ANS-Writing
BLANKED APPROVAL
A corporation is issuing 5,000,000 shares of stock at a public Offering price of $13 per
share. The manager of the underwriting syndicate receives $0.15 per share. The
