Series 24 Exam with 100% Correct
Answers
Reg M Rule 103 - ANS-MM also a syndicate member elects to function as passive mm
- Notification to Nasdaq 1 biz day before restricted period
- Identifier PSMM must be used
- Passive bids no higher than highest indep. bid
- Indep market must exist
- Subject to limit order display rule
6 Year Filings - ANS-Blotters (Day book, journal, diary)
General Ledgers
Stock Record
Statements
Customer Account Records
Principal designation record
Series 22 - ANS-Allowed to sell DPP's
Foreign Associates Must... - ANS-Register with Finra, but are exempt from having to
pass an exam.
Series
27
51
53 - ANS-27 = Supervise the preperation of financial reports
51 = Sup. activitives of municipal fund
- such as 529 plan and local govt inv pools only
53 = Sup. purchase of municipal securities
Kept at OSJ and Supervisory office - ANS-Memers written Supervisory Procedures
Finra Manuel - Must be avail to cust.
- Electronically avail ok
Special Reserve Account Monthly Computation - ANS-Small number of firms allowed
monthly rather than weekly Reserve Compuatation.
Must deposit 105% of required amount.
Firms exempt from Cust Protection Rules Possession / Control and Special Reserve
Acct. - ANS-Ki = Firms dealing only with Mutual Funds
, K2ii = Applies to Introducing Firms
K2i = Firms clearing business through Omnibus
K2i - ANS-Firm clears business through Omnibus
Firm is responcible to sending statements & Confirms
No Margins accts. and forwards all sec to clearing firm
Firm clearing by Omnibus Net Cap Req = $100,000
ACT trades reported in - ANS-30 Seconds
Exemptions to Limit Order Display Rule - ANS-Odd-Lots
All-or-None orders
De Minimus orders less than 10% of MM display size only if MM at inside market
Limit order still protected
Forward Looking Statements allowed in - ANS-Annual Reports
Prospectuses
Proxy material
Prime Brokerage client must have how much equity - ANS-$500,000
Actively traded security - ANS-ADTV of $1,000,000
Public Float of $150mil
Termination of Independant Accountant - ANS-Electronically file with Sec and Finra
within 15 Days
Details surrounding termination
Information of Disputes within 24 month period
Letter from acct. presenting their side
AML Placement - ANS-Currency enters financial system
AML Layering - ANS-Series of transactions to obscure trail
AML Integration - ANS-Funds are integrated with legitimate monies as they enter the
mainstream economy
Minimum Net Capital for Est Carrying firm - ANS-$250,000 or 1/15 AI
Introducing Firms Net Cap if >10 trades - ANS-$100,000
Immediate Notice to Finra - ANS-Books and Records
Debt to Equity Ratio exceeds 70% for 90+ days
Net Capital falls below minimum requirement
NASDAQ Market Center (Single Book) - ANS-•Nasdaq Market Center
Answers
Reg M Rule 103 - ANS-MM also a syndicate member elects to function as passive mm
- Notification to Nasdaq 1 biz day before restricted period
- Identifier PSMM must be used
- Passive bids no higher than highest indep. bid
- Indep market must exist
- Subject to limit order display rule
6 Year Filings - ANS-Blotters (Day book, journal, diary)
General Ledgers
Stock Record
Statements
Customer Account Records
Principal designation record
Series 22 - ANS-Allowed to sell DPP's
Foreign Associates Must... - ANS-Register with Finra, but are exempt from having to
pass an exam.
Series
27
51
53 - ANS-27 = Supervise the preperation of financial reports
51 = Sup. activitives of municipal fund
- such as 529 plan and local govt inv pools only
53 = Sup. purchase of municipal securities
Kept at OSJ and Supervisory office - ANS-Memers written Supervisory Procedures
Finra Manuel - Must be avail to cust.
- Electronically avail ok
Special Reserve Account Monthly Computation - ANS-Small number of firms allowed
monthly rather than weekly Reserve Compuatation.
Must deposit 105% of required amount.
Firms exempt from Cust Protection Rules Possession / Control and Special Reserve
Acct. - ANS-Ki = Firms dealing only with Mutual Funds
, K2ii = Applies to Introducing Firms
K2i = Firms clearing business through Omnibus
K2i - ANS-Firm clears business through Omnibus
Firm is responcible to sending statements & Confirms
No Margins accts. and forwards all sec to clearing firm
Firm clearing by Omnibus Net Cap Req = $100,000
ACT trades reported in - ANS-30 Seconds
Exemptions to Limit Order Display Rule - ANS-Odd-Lots
All-or-None orders
De Minimus orders less than 10% of MM display size only if MM at inside market
Limit order still protected
Forward Looking Statements allowed in - ANS-Annual Reports
Prospectuses
Proxy material
Prime Brokerage client must have how much equity - ANS-$500,000
Actively traded security - ANS-ADTV of $1,000,000
Public Float of $150mil
Termination of Independant Accountant - ANS-Electronically file with Sec and Finra
within 15 Days
Details surrounding termination
Information of Disputes within 24 month period
Letter from acct. presenting their side
AML Placement - ANS-Currency enters financial system
AML Layering - ANS-Series of transactions to obscure trail
AML Integration - ANS-Funds are integrated with legitimate monies as they enter the
mainstream economy
Minimum Net Capital for Est Carrying firm - ANS-$250,000 or 1/15 AI
Introducing Firms Net Cap if >10 trades - ANS-$100,000
Immediate Notice to Finra - ANS-Books and Records
Debt to Equity Ratio exceeds 70% for 90+ days
Net Capital falls below minimum requirement
NASDAQ Market Center (Single Book) - ANS-•Nasdaq Market Center
