SERIES 10 - QUESTIONS
CCIM 101 FINANCIAL ANALYSIS –
QUESTIONS AND CORRECT ANSWERS
(LATEST VERIFIED CONTENT)
A Series 7 licensed registered representative leaves the employ of
Broker-Dealer A to try a new career as a hair stylist. He leaves that
business after working for 22 months because he was called up for
active duty in the military. Upon return from military service 24
months later, he decides that he no longer wants to be a hair stylist
and wishes to re-enter the securities business. He interviews with
Broker-Dealer B and is hired 70 days after returning from active
military duty. Which statement is TRUE about requalification of this
individual?
A This individual must retake and pass the Series 7 exam in order to
be requalified
B This individual must take Regulatory Element CE in order to be
requalified
,C This individual must retake and pass the Series 7 exam and must
take Regulatory Element CE in order to be requalified
D This individual will be relicensed without being required to retake
the Series 7 exam a - <<<<<CORRECT ANSWER >>>>>>-The
best answer is D. FINRA has interpreted that it will grant "special
inactive status" not only to currently registered individuals who are
called up for active military duty, but it will also do so for anyone who
is called up for active military duty in the 24 months following
termination of association with a member. This keeps the person's
licensing exam from lapsing and excuses the individual from the CE
obligation until that individual returns from active military duty, as
long as he or she reassociates with a member firm within 90 days of
return from service. This is the case in this example, so Choice D is
correct.
Which of the following individuals MUST be registered with FINRA?
A Variable annuity salesmen
B Commodity salesmen
C DMMs on recognized stock exchanges
D Government securities traders - <<<<<CORRECT ANSWER
>>>>>>-The best answer is A. To sell variable annuity contracts
(which are considered to be a non-exempt security by the SEC), not
,only must an individual be registered with the State Insurance
Commission, but he must also be registered with FINRA through a
broker-dealer. Persons who have passed the Series 6 (Investment
Companies/Variable Annuities exam) or the Series 7 (General
Securities) exam are licensed to sell these products. Commodities are
not securities and are not regulated by FINRA. U.S. Governments are
exempt securities, so they do not fall under FINRA jurisdiction unless
the government securities dealer is also an FINRA member. Floor
traders on recognized stock exchanges are registered through the
exchanges. They are not regulated by FINRA. DMMs (Designated
Market Makers) on recognized stock exchanges are registered
through the exchanges.
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 - <<<<<CORRECT ANSWER
>>>>>>-The best answer is B. Under MSRB rules, the following
must be noted on agency order tickets: 1.Terms and conditions of the
order.
2.Date and time of receipt of the order.
, 3.The price at which the trade was executed.
4.The date of execution, and to the extent feasible, the time of
execution.
5.If the account is that of a partnership, corporation, a joint account,
or an order entered pursuant to a power of attorney, the name and
address (if other than the account address) of the person entering
the order.
6.If the order is canceled by a customer, the record must show the
terms, conditions and date of cancellation, and to the extent feasible,
the time of cancellation.
7.If the trade is discretionary, the ticket must be designated as such.
Note that there is no requirement to note the time of order entry on
the ticket.
A municipal dealer who is a FINRA member employs 7 sales
representatives, 3 traders, 2 financial advisors and 2 administrative
persons. Under MSRB rules, this dealer must have:
A 1 municipal principal
B 2 municipal principals
C 3 municipal principals
CCIM 101 FINANCIAL ANALYSIS –
QUESTIONS AND CORRECT ANSWERS
(LATEST VERIFIED CONTENT)
A Series 7 licensed registered representative leaves the employ of
Broker-Dealer A to try a new career as a hair stylist. He leaves that
business after working for 22 months because he was called up for
active duty in the military. Upon return from military service 24
months later, he decides that he no longer wants to be a hair stylist
and wishes to re-enter the securities business. He interviews with
Broker-Dealer B and is hired 70 days after returning from active
military duty. Which statement is TRUE about requalification of this
individual?
A This individual must retake and pass the Series 7 exam in order to
be requalified
B This individual must take Regulatory Element CE in order to be
requalified
,C This individual must retake and pass the Series 7 exam and must
take Regulatory Element CE in order to be requalified
D This individual will be relicensed without being required to retake
the Series 7 exam a - <<<<<CORRECT ANSWER >>>>>>-The
best answer is D. FINRA has interpreted that it will grant "special
inactive status" not only to currently registered individuals who are
called up for active military duty, but it will also do so for anyone who
is called up for active military duty in the 24 months following
termination of association with a member. This keeps the person's
licensing exam from lapsing and excuses the individual from the CE
obligation until that individual returns from active military duty, as
long as he or she reassociates with a member firm within 90 days of
return from service. This is the case in this example, so Choice D is
correct.
Which of the following individuals MUST be registered with FINRA?
A Variable annuity salesmen
B Commodity salesmen
C DMMs on recognized stock exchanges
D Government securities traders - <<<<<CORRECT ANSWER
>>>>>>-The best answer is A. To sell variable annuity contracts
(which are considered to be a non-exempt security by the SEC), not
,only must an individual be registered with the State Insurance
Commission, but he must also be registered with FINRA through a
broker-dealer. Persons who have passed the Series 6 (Investment
Companies/Variable Annuities exam) or the Series 7 (General
Securities) exam are licensed to sell these products. Commodities are
not securities and are not regulated by FINRA. U.S. Governments are
exempt securities, so they do not fall under FINRA jurisdiction unless
the government securities dealer is also an FINRA member. Floor
traders on recognized stock exchanges are registered through the
exchanges. They are not regulated by FINRA. DMMs (Designated
Market Makers) on recognized stock exchanges are registered
through the exchanges.
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 - <<<<<CORRECT ANSWER
>>>>>>-The best answer is B. Under MSRB rules, the following
must be noted on agency order tickets: 1.Terms and conditions of the
order.
2.Date and time of receipt of the order.
, 3.The price at which the trade was executed.
4.The date of execution, and to the extent feasible, the time of
execution.
5.If the account is that of a partnership, corporation, a joint account,
or an order entered pursuant to a power of attorney, the name and
address (if other than the account address) of the person entering
the order.
6.If the order is canceled by a customer, the record must show the
terms, conditions and date of cancellation, and to the extent feasible,
the time of cancellation.
7.If the trade is discretionary, the ticket must be designated as such.
Note that there is no requirement to note the time of order entry on
the ticket.
A municipal dealer who is a FINRA member employs 7 sales
representatives, 3 traders, 2 financial advisors and 2 administrative
persons. Under MSRB rules, this dealer must have:
A 1 municipal principal
B 2 municipal principals
C 3 municipal principals
