FINRA SIE exam - Chap 1 Questions and Answers | 100% Correct

FINRA SIE exam - Chap 1 Questions and Answers | 100% Correct What are the quailfications of a an accredited investor? ️️ Correct-1. 200,000 annual income (single) 2. 300,000 annual income (joint/married) (last two years) 3. $1,000,000 net worth EXCLUDING primary residence For accredited investors does in include primary residence? ️️ Correct-No! Must have a networth not including primary residence What is the DTCC's goal? ️️ Correct-to automate and centrailze clearing and settlement. The securities do not have to be physical. How are equities cleared? (i.e what agency?) ️️ Correct-National Securities Clearing Corporation (NSCC) ️️ Correct-what does the National Securities Clearing Corporation (NSCC) do? - a subsidiary to the DTCC - The National Securities Clearing Corporation (NSCC) provides clearing services for the majority of broker-to-broker equity trades in the United States. What is the purpose of clearing agencies/corporations? name 3 main suctions TITLE: EMILLYCHARLOTTE 2024/2025 ACADEMIC PERIOD OWNER: EMILLYCHARLOTTE COPYRIGHT STATEMENT: ©2024 EMILLYCHARLOTTE. ALL RIGHTS RESERVED FIRST PUBLISHED: SEPTEMBER 2024 2/11️️ Correct--It provides trade comparison and reporting services. -It assists broker-dealers in transferring assets in a customer account to another broker- dealer. -It offers customers the ability to have real-time trade matching. What does a DTC do? ️️ Correct-has the responsibility for automated book-entry changes in the ownership of securities Where are non listed stocks found? ️️ Correct-Over the counter markets (OTC equities) can be found on the OTCBB (bulletin) board and OTC pink marketplace Who maintains accounts for ominous accounts in clearing? ️️ Correct-The introducing firms What is a broker-dealer? ️️ Correct-a financial intermediary that connects issuers of securities to investors What does a broker do? ️️ Correct-Brokers act as AGENTS that have commission by connecting buyers and sellers (or issuers and investors) What does it mean to be an agent and a principal TITLE: EMILLYCHARLOTTE 2024/2025 ACADEMIC PERIOD OWNER: EMILLYCHARLOTTE COPYRIGHT STATEMENT: ©2024 EMILLYCHARLOTTE. ALL RIGHTS RESERVED FIRST PUBLISHED: SEPTEMBER 2024 3/11️️ Correct-agent = act on behalf of someone else, arranges for the asset for the customer principal = provides the service, What does a dealer do? ️️ Correct-dealer acts as a principal and ma