FINRA Securities Industry Essentials Exam (Q&A)
2026/2027 – Capital Markets, Products, and
Compliance Simplified | PDF
A currency transaction report is a report that US financial institutions are
required to file with
FinCEN
(Financial Crime Exchange Network)
Investment advisors that have custody of client assets or require
prepayment of advisory fees _______ or more in advance, and in excess of
______ for each client, must file an audited balance sheet with the SEC as
of the end of the investment adviser's fiscal year
6 months; $500
The three categories of firm communications that are defined and
regulated by FINRA Rule 2210 are
Correspondence
Institutional communication
Retail communication
The right to demand the repayment of monies paid if there has been a bad
delivery of a stock or security is called
Reclamation
An advertisement used by register investment companies that advise
readers to obtain a full prospectus is called ________
It is not permitted to include an application to invest, and it must contain
specific caveats pursuant to SEC Rule 482
Omitting prospectus
, A note issued in which the government borrows money to finance a
project and then repays lenders with revenue generated by the same
project is called
RAN
(Revenue Anticipation Note)
A type of public offering auction in which the price of the offering is set
after taking in all bids to determine the highest price at which the total
offering can be sold is called the
Dutch Auction
In addition to the federal securities laws, each state has its own set of
securities laws, commonly referred to as ______, which are designed to
protect investors against fraudulent sales practices and activities
Blue Sky Laws
What passes capital gains, dividends, and interest earned on fund
investments directly to shareholders so that it is taxed only at the personal
level, and double taxation is avoided?
Regulated investment company
In any single life private annuity transaction, if the seller outlives his or her
actuarial life expectancy, the purchaser will have paid _______ for the
property. If the seller does not outlive his or her actuarial life expectancy,
the _________ will have made a good financial deal.
too much; purchaser
How is the net asset value (NAV) of a mutual fund calculated?
NAV=(Total value of investment - liabilities) / shares outstanding
The statement of cash flows is separated into what categories?
2026/2027 – Capital Markets, Products, and
Compliance Simplified | PDF
A currency transaction report is a report that US financial institutions are
required to file with
FinCEN
(Financial Crime Exchange Network)
Investment advisors that have custody of client assets or require
prepayment of advisory fees _______ or more in advance, and in excess of
______ for each client, must file an audited balance sheet with the SEC as
of the end of the investment adviser's fiscal year
6 months; $500
The three categories of firm communications that are defined and
regulated by FINRA Rule 2210 are
Correspondence
Institutional communication
Retail communication
The right to demand the repayment of monies paid if there has been a bad
delivery of a stock or security is called
Reclamation
An advertisement used by register investment companies that advise
readers to obtain a full prospectus is called ________
It is not permitted to include an application to invest, and it must contain
specific caveats pursuant to SEC Rule 482
Omitting prospectus
, A note issued in which the government borrows money to finance a
project and then repays lenders with revenue generated by the same
project is called
RAN
(Revenue Anticipation Note)
A type of public offering auction in which the price of the offering is set
after taking in all bids to determine the highest price at which the total
offering can be sold is called the
Dutch Auction
In addition to the federal securities laws, each state has its own set of
securities laws, commonly referred to as ______, which are designed to
protect investors against fraudulent sales practices and activities
Blue Sky Laws
What passes capital gains, dividends, and interest earned on fund
investments directly to shareholders so that it is taxed only at the personal
level, and double taxation is avoided?
Regulated investment company
In any single life private annuity transaction, if the seller outlives his or her
actuarial life expectancy, the purchaser will have paid _______ for the
property. If the seller does not outlive his or her actuarial life expectancy,
the _________ will have made a good financial deal.
too much; purchaser
How is the net asset value (NAV) of a mutual fund calculated?
NAV=(Total value of investment - liabilities) / shares outstanding
The statement of cash flows is separated into what categories?
