Which action is permitted under FINRA rules?
A
A registered representative accepts a $300 gift from a customer
B
A registered representative pays for a $1200 sushi meal with a customer
C
A registered representative gives a customer $200 tickets to a show
,D
A registered representative accompanies a customer to a show, for which the
representative paid $200 for the tickets
Give this one a try later!
D
Business entertainment does not fall under the $100 gift limit. Business
entertainment is permitted as long as it is not too excessive ($1200 for raw
fish seems excessive!) or too frequent and it must comply with the firm's
policies and procedures. Business entertainment means that the
representative and the customer are together at some type of event.
A registered representative is employed by a broker-dealer that is a publicly traded
company, listed on the New York Stock Exchange. Which statement is TRUE? The
registered representative:
A
may recommend the purchase of his employer's stock to established customers, but
not to new customers
B
may recommend the purchase of his employer's stock to new customers, but not to
established customers
C
may accept unsolicited orders for his employer's stock; but cannot solicit orders for,
nor recommend, buying that security
D
cannot accept solicited or unsolicited orders for his employer's stock; nor can he or
she recommend buying that security
Give this one a try later!
, C
If a registered representative is employed by a publicly traded member
firm (say Raymond James), generally speaking he or she cannot
recommend the purchase of that company's shares; nor can he solicit
customers to buy the shares. This is not an explicit SEC or FINRA regulation;
rather it is industry practice that ensures compliance with FINRA's
"suitability" requirements; and the requirement to disclose control
relationships at or prior to confirmation. However, it is permitted to accept
unsolicited customer orders for the shares.
All of the following statements are true regarding the U.S. securities markets EXCEPT:
A
The Federal Reserve Board decides which securities can be traded on margin
B
FINRA has regulatory authority over the U.S. securities markets and market
participants in the trading of all non-exempt securities
C
The Securities and Exchange Commission has regulatory authority over the U.S.
securities market and market participants
D
The MSRB has regulatory authority over the U.S securities markets and market
participants in the trading of all exempt securities
Give this one a try later!
D
Both FINRA and the SEC regulate the U.S. securities markets. FINRA is the
SRO (Self Regulatory Organization) that regulates the markets under SEC
oversight.
The Federal Reserve decides which securities are marginable, since it has
power over margin rules given under the Securities Exchange Act of 1934.
The MSRB only write regulations covering the trading of municipal bonds -
A
A registered representative accepts a $300 gift from a customer
B
A registered representative pays for a $1200 sushi meal with a customer
C
A registered representative gives a customer $200 tickets to a show
,D
A registered representative accompanies a customer to a show, for which the
representative paid $200 for the tickets
Give this one a try later!
D
Business entertainment does not fall under the $100 gift limit. Business
entertainment is permitted as long as it is not too excessive ($1200 for raw
fish seems excessive!) or too frequent and it must comply with the firm's
policies and procedures. Business entertainment means that the
representative and the customer are together at some type of event.
A registered representative is employed by a broker-dealer that is a publicly traded
company, listed on the New York Stock Exchange. Which statement is TRUE? The
registered representative:
A
may recommend the purchase of his employer's stock to established customers, but
not to new customers
B
may recommend the purchase of his employer's stock to new customers, but not to
established customers
C
may accept unsolicited orders for his employer's stock; but cannot solicit orders for,
nor recommend, buying that security
D
cannot accept solicited or unsolicited orders for his employer's stock; nor can he or
she recommend buying that security
Give this one a try later!
, C
If a registered representative is employed by a publicly traded member
firm (say Raymond James), generally speaking he or she cannot
recommend the purchase of that company's shares; nor can he solicit
customers to buy the shares. This is not an explicit SEC or FINRA regulation;
rather it is industry practice that ensures compliance with FINRA's
"suitability" requirements; and the requirement to disclose control
relationships at or prior to confirmation. However, it is permitted to accept
unsolicited customer orders for the shares.
All of the following statements are true regarding the U.S. securities markets EXCEPT:
A
The Federal Reserve Board decides which securities can be traded on margin
B
FINRA has regulatory authority over the U.S. securities markets and market
participants in the trading of all non-exempt securities
C
The Securities and Exchange Commission has regulatory authority over the U.S.
securities market and market participants
D
The MSRB has regulatory authority over the U.S securities markets and market
participants in the trading of all exempt securities
Give this one a try later!
D
Both FINRA and the SEC regulate the U.S. securities markets. FINRA is the
SRO (Self Regulatory Organization) that regulates the markets under SEC
oversight.
The Federal Reserve decides which securities are marginable, since it has
power over margin rules given under the Securities Exchange Act of 1934.
The MSRB only write regulations covering the trading of municipal bonds -
