FINRA Series 10 Practice Exams 1 & 2|72 Questions with
Verified Answers
C - CORRECT ANSWER All investment company advertising must be filed with
FINRA:
A
10 business days prior to 1st use
B
10 business days prior to use for the 1st year of operations; no filing is required
thereafter
C
10 business days after 1st use
D
10 business days after 1st use for the 1st year of operations; no filing is required
thereafter
C - CORRECT ANSWER A registered representative works from her home office,
with supervision of the location performed by the branch manager at the local
member firm office in that town. Both the home office and the local member firm
office are registered with FINRA as branch locations. Which statement is TRUE?
A
The local office may be advertised as a branch, but the home office may not
B
The home office may be advertised as a branch, but the branch office may not
C
Both the local office and the home office may be advertised as branches
D
Neither the local office nor the home office may be advertised as branches
B - CORRECT ANSWER Under MSRB rules, an order ticket for an agency
transaction must include all of the following EXCEPT:
A
time of order receipt
B
,time of order entry
C
time of order execution
D
time of order cancellation
lowest ask price - CORRECT ANSWER Under the FINRA 5% Policy, the mark-up
percentage is calculated based upon the
A - CORRECT ANSWER A "bona fide" customer, to whom a copy of a member
firm's statement of financial condition must be provided upon request, is defined
as a person who:
A
has cash or securities in the possession of the member
B
has traded through the member within the past 3 months
C
is not a member of FINRA
D
has engaged in any business transaction with the member within the past 12
months
C - CORRECT ANSWER Municipal issuers are subject to:
A
regulations promulgated by the Municipal Securities Rulemaking Board
B
registration requirements for new issues imposed under the Securities Act of
1933
C
anti-fraud Rule 10b-5 promulgated under the Securities Exchange Act of 1934
D
all of the above
C - CORRECT ANSWER Which security MUST be registered with the SEC?
A
Port authority revenue bond
B
, Bank CD in the amount of $10 million
C
Debenture shelf offering of $100 million
D
Regional bank stock sold in an add on offering
II and IV - CORRECT ANSWER The FINRA 5% Policy applies to transactions in which
of the following securities?
I Open end investment companies
II Closed end investment companies
III Unit investment trusts
IV Real estate investment trusts
limit orders (limit order protection rule) - CORRECT ANSWER The Manning Rule
covers:
C - CORRECT ANSWER Regarding FINRA Rule 5130 on IPO purchases of common
stock from underwriters, which statement is TRUE?
A
A FINRA member firm is allowed to buy a new issue for the firm's investment
account
B
An underwriter in the syndicate is allowed to buy and retain a portion of the issue
C
The self-supporting spouse of a bank President is permitted to buy the issue
D
The self-supporting father of a registered representative whose firm is in the
underwriting group is permitted to buy the issue
C - CORRECT ANSWER If correspondence is flagged for review by a firm's
electronic surveillance tool, this review:
A
must be performed by a Series 24 principal
B
must be performed by a registered individual
C
can be delegated to an individual who need not be registered
Verified Answers
C - CORRECT ANSWER All investment company advertising must be filed with
FINRA:
A
10 business days prior to 1st use
B
10 business days prior to use for the 1st year of operations; no filing is required
thereafter
C
10 business days after 1st use
D
10 business days after 1st use for the 1st year of operations; no filing is required
thereafter
C - CORRECT ANSWER A registered representative works from her home office,
with supervision of the location performed by the branch manager at the local
member firm office in that town. Both the home office and the local member firm
office are registered with FINRA as branch locations. Which statement is TRUE?
A
The local office may be advertised as a branch, but the home office may not
B
The home office may be advertised as a branch, but the branch office may not
C
Both the local office and the home office may be advertised as branches
D
Neither the local office nor the home office may be advertised as branches
B - CORRECT ANSWER Under MSRB rules, an order ticket for an agency
transaction must include all of the following EXCEPT:
A
time of order receipt
B
,time of order entry
C
time of order execution
D
time of order cancellation
lowest ask price - CORRECT ANSWER Under the FINRA 5% Policy, the mark-up
percentage is calculated based upon the
A - CORRECT ANSWER A "bona fide" customer, to whom a copy of a member
firm's statement of financial condition must be provided upon request, is defined
as a person who:
A
has cash or securities in the possession of the member
B
has traded through the member within the past 3 months
C
is not a member of FINRA
D
has engaged in any business transaction with the member within the past 12
months
C - CORRECT ANSWER Municipal issuers are subject to:
A
regulations promulgated by the Municipal Securities Rulemaking Board
B
registration requirements for new issues imposed under the Securities Act of
1933
C
anti-fraud Rule 10b-5 promulgated under the Securities Exchange Act of 1934
D
all of the above
C - CORRECT ANSWER Which security MUST be registered with the SEC?
A
Port authority revenue bond
B
, Bank CD in the amount of $10 million
C
Debenture shelf offering of $100 million
D
Regional bank stock sold in an add on offering
II and IV - CORRECT ANSWER The FINRA 5% Policy applies to transactions in which
of the following securities?
I Open end investment companies
II Closed end investment companies
III Unit investment trusts
IV Real estate investment trusts
limit orders (limit order protection rule) - CORRECT ANSWER The Manning Rule
covers:
C - CORRECT ANSWER Regarding FINRA Rule 5130 on IPO purchases of common
stock from underwriters, which statement is TRUE?
A
A FINRA member firm is allowed to buy a new issue for the firm's investment
account
B
An underwriter in the syndicate is allowed to buy and retain a portion of the issue
C
The self-supporting spouse of a bank President is permitted to buy the issue
D
The self-supporting father of a registered representative whose firm is in the
underwriting group is permitted to buy the issue
C - CORRECT ANSWER If correspondence is flagged for review by a firm's
electronic surveillance tool, this review:
A
must be performed by a Series 24 principal
B
must be performed by a registered individual
C
can be delegated to an individual who need not be registered
