SIE Exam Rules Study Guide with Complete Solutions

SIE Exam Rules Study Guide with Complete Solutions Rule 147 - Answer️️ -SEC rule that provides exemption from the registration statement and prospectus requirements of the 1933 Act for securities offered and sold exclusively intrastate. Regulation D - Answer️️ -SEC rules concerning PRIVATE PLACEMENTS and defining related concepts such as ACCREDITED INVESTOR. You can sell to only up to 35 non- accredited investors. Rule 144 - Answer️️ -A regulation that provides for the sale of restricted stock and control stock. Filing with the SEC is required prior to selling restricted and control stock. The number of shares that may be sold is limited. You must hold restricted stock for 6months/1year or at least until the company goes public. Rule 144A - Answer️️ -An exemption to the holding period and volume restrictions of Rule 144 for qualified institutional buyers (QIBs). Rule 145 - Answer️️ -A regulation covering mergers and acquisitions that also exempts stock splits and stock dividends from the registration requirements of the Securities Act of 1933. Other reclassifications must be registered with the SEC. TITLE: EMILLYCHARLOTTE 2024/2025 ACADEMIC PERIOD OWNER: EMILLYCHARLOTTE COPYRIGHT STATEMENT: ©2024 EMILLYCHARLOTTE. ALL RIGHTS RESERVED FIRST PUBLISHED: SEPTEMBER 2024 2/7 Securities Act of 1934 - Answer️️ -A law governing the secondary trading of securities in the US; established the SEC (Securities and Exchange Commission). Requires companies to issue 10Ks and 10Qs. FINRA Rule 2120 - Answer️️ -Broker/dealers must charge fair buy/sells prices and charge fair commissions. SEC Rule 15c2-12 - Answer️️ -Current information about municipal issuers and securities must be available. FINRA Rule 2090 - Answer️️ -Know your customer when they open their account MSRB Rule G-47 - Answer️️ - Securities Act of 1933 - Answer️️ -The first major federal law regulating the securities industry. It requires firms issuing new stock in a public offering to file a registration statement with the SEC. (Prospectus) FINRA Rule 5130 - Answer️️ -Underwriters must make bona fide offerings - they cannot sell to restricted persons and their immediate family members. In addition, they must execute transactions at prices that are favorable under the prevailing market conditions. MSRB G-11 - Answer️️ -Syndicate must establish priority for allocating orders. Presale, Group, Designated, Members. MSRB Rule G-32 - Answer️️ -Information must be provided no later than settlement date when buying new municipal security. TITLE: EMILLYCHARLOTTE 2024/2025 ACADEMIC PERIOD OWNER: EMILLYCHARLOTTE COPYRIGHT STATEMENT: ©2024 EMILLYCHARLOTTE. ALL RIGHTS RESERVED FIRST PUBLISHED: SEPTEMBER 2024 3/7 FINRA Rule 5220 - Answer️️ -Market makers must maintain and honor firm quotes. FINRA Rule 6438 - Answer️️ -Quotes on OTC Pink must be the same as OTCBB (OTC Bulletin Board) SEC Regulation D - Answer️️ -Stabilization bids (greenshoe) must be announced in advance. FINRA Rule 5290 - Answer️️ -Prohibits Trade Shredding (splitting orders to smaller orders for execution). FINRA Rule 5230 - Answer️️ -Firms can't give payments or anything else of value to media publications to influence the price of the security. FINRA Rule 5210 - Answer️️ -A firm cannot publish or circulate securities or transactions reports unless they believe that the quote is bona fide and legitimate. FINRA Rule 5250 - Answer️️ -Prohibits firm fro