Quiz-summary
0 of 10 questions completed
Questions:
- 1
- 2
- 3
- 4
- 5
- 6
- 7
- 8
- 9
- 10
Information
Certdemy Premium Access
You have already completed the quiz before. Hence you can not start it again.
Quiz is loading...
You must sign in or sign up to start the quiz.
You have to finish following quiz, to start this quiz:
Results
0 of 10 questions answered correctly
Your time:
Time has elapsed
You have reached 0 of 0 points, (0)
Categories
- Not categorized 0%
- 1
- 2
- 3
- 4
- 5
- 6
- 7
- 8
- 9
- 10
- Answered
- Review
-
Question 1 of 10
1. Question
Each carrying or clearing member shall promptly, but in any event within 24 hours, notify FINRA in writing if its net capital falls below which of the following percentages?
I. The member’s net capital is less than 150 percent of its minimum dollar net capital requirement or such greater percentage thereof as may from time to time be designated by FINRA
II. The member is subject to the aggregate indebtedness requirement of SEA Rule 15c3-1, and its aggregate indebtedness is more than 1,000 percent of its net capital
III. The member is registered as a Futures Commission Merchant pursuant to the Commodity Exchange Act, and its net capital is less than 130% of the minimum risk-based capital requirements of Commodity Exchange Act Rule 1.17
IV. The member elects to use the alternative method of computing net capital pursuant to SEA Rule 15c3-1(a)(1)(ii), and its net capital is less than the level specified in SEA Rule 17a-11(c)(2)Correct
FINRA Rule 4120. Regulatory Notification and Business Curtailment
Each carrying or clearing member shall promptly, but in any event within 24 hours, notify FINRA in writing if its net capital falls below the following percentages:
(A) the member’s net capital is less than 150 percent of its minimum dollar net capital requirement or such greater percentage thereof as may from time to time be designated by FINRA;
(B) the member is subject to the aggregate indebtedness requirement of SEA Rule 15c3-1, and its aggregate indebtedness is more than 1,000 percent of its net capital;
(C) the member elects to use the alternative method of computing net capital pursuant to SEA Rule 15c3-1(a)(1)(ii), and its net capital is less than the level specified in SEA Rule 17a-11(c)(2);
(D) the member is registered as a Futures Commission Merchant pursuant to the Commodity Exchange Act, and its net capital is less than 120% of the minimum risk-based capital requirements of Commodity Exchange Act Rule 1.17Incorrect
FINRA Rule 4120. Regulatory Notification and Business Curtailment
Each carrying or clearing member shall promptly, but in any event within 24 hours, notify FINRA in writing if its net capital falls below the following percentages:
(A) the member’s net capital is less than 150 percent of its minimum dollar net capital requirement or such greater percentage thereof as may from time to time be designated by FINRA;
(B) the member is subject to the aggregate indebtedness requirement of SEA Rule 15c3-1, and its aggregate indebtedness is more than 1,000 percent of its net capital;
(C) the member elects to use the alternative method of computing net capital pursuant to SEA Rule 15c3-1(a)(1)(ii), and its net capital is less than the level specified in SEA Rule 17a-11(c)(2);
(D) the member is registered as a Futures Commission Merchant pursuant to the Commodity Exchange Act, and its net capital is less than 120% of the minimum risk-based capital requirements of Commodity Exchange Act Rule 1.17 -
Question 2 of 10
2. Question
What has been determined by the Board since the adoption of the “5% Policy”?
I. The “5% Policy” is a rule, not a guide
II. A member may not justify mark-ups on the basis of expenses which are excessive
III. The mark-up over the prevailing market price is the significant spread from the point of view of fairness of dealings with customers in principal transactions. In the absence of other bona fide evidence of the prevailing market, a member’s own contemporaneous cost is the best indication of the prevailing market price of a security
IV. A mark-up pattern of 5% or even less may be considered unfair or unreasonable under the “5% Policy.”Correct
FINRA Rule 2120. Commissions, Mark Ups and Charges
2121. Fair Prices and Commissions(a) General Considerations
Since the adoption of the “5% Policy” the Board has determined that:
(1) The “5% Policy” is a guide, not a rule.
(2) A member may not justify mark-ups on the basis of expenses which are excessive.
(3) The mark-up over the prevailing market price is the significant spread from the point of view of fairness of dealings with customers in principal transactions. In the absence of other bona fide evidence of the prevailing market, a member’s own contemporaneous cost is the best indication of the prevailing market price of a security.
(4) A mark-up pattern of 5% or even less may be considered unfair or unreasonable under the “5% Policy.”Incorrect
FINRA Rule 2120. Commissions, Mark Ups and Charges
2121. Fair Prices and Commissions(a) General Considerations
Since the adoption of the “5% Policy” the Board has determined that:
(1) The “5% Policy” is a guide, not a rule.
(2) A member may not justify mark-ups on the basis of expenses which are excessive.
(3) The mark-up over the prevailing market price is the significant spread from the point of view of fairness of dealings with customers in principal transactions. In the absence of other bona fide evidence of the prevailing market, a member’s own contemporaneous cost is the best indication of the prevailing market price of a security.
(4) A mark-up pattern of 5% or even less may be considered unfair or unreasonable under the “5% Policy.” -
Question 3 of 10
3. Question
What are the factors which the Board believes that members and the Association’s committees should take into consideration in determining the fairness of a mark-up?
I. The Type of Security Involved
II. The Amount of Money Involved in a Transaction
III. The Pattern of Mark-Ups
IV. The Nature of the Member’s BusinessCorrect
2120. Commissions, Mark Ups and Charges
2121. Fair Prices and Commissions
(b) Relevant Factors
Some of the factors which the Board believes that members and the Association’s committees should take into consideration in determining the fairness of a mark-up are as follow:
I. The Type of Security Involved
II. The Amount of Money Involved in a Transaction
III. The Pattern of Mark-Ups
IV. The Nature of the Member’s BusinessIncorrect
2120. Commissions, Mark Ups and Charges
2121. Fair Prices and Commissions
(b) Relevant Factors
Some of the factors which the Board believes that members and the Association’s committees should take into consideration in determining the fairness of a mark-up are as follow:
I. The Type of Security Involved
II. The Amount of Money Involved in a Transaction
III. The Pattern of Mark-Ups
IV. The Nature of the Member’s Business -
Question 4 of 10
4. Question
No member or person associated with a member shall:
I. Coordinate the prices (including quotations), trades or trade reports of such member with any other member or person associated with a member, or any other person
II. Direct or request another member to alter a price (including a quotation)
III. Engage, directly or indirectly, in any conduct that threatens, harasses, coerces, intimidates or otherwise attempts improperly to influence another member, a person associated with a member, or any other person
IV. Engage in any underwriting (or any syndicate for the underwriting) of securities to the extent permitted by the federal securities lawsCorrect
FINRA Rule 5240. Anti-Intimidation/Coordination
No member or person associated with a member shall:
I. Coordinate the prices (including quotations), trades or trade reports of such member with any other member or person associated with a member, or any other person
II. Direct or request another member to alter a price (including a quotation)
III. Engage, directly or indirectly, in any conduct that threatens, harasses, coerces, intimidates or otherwise attempts improperly to influence another member, a person associated with a member, or any other personIncorrect
FINRA Rule 5240. Anti-Intimidation/Coordination
No member or person associated with a member shall:
I. Coordinate the prices (including quotations), trades or trade reports of such member with any other member or person associated with a member, or any other person
II. Direct or request another member to alter a price (including a quotation)
III. Engage, directly or indirectly, in any conduct that threatens, harasses, coerces, intimidates or otherwise attempts improperly to influence another member, a person associated with a member, or any other person -
Question 5 of 10
5. Question
Which of the following refer to member of FINRA that is an electronic communications network (“ECN”) that elects to display orders in the ADF?
Correct
FINRA Alternative Display Facility (ADF) Rule 6200 Series
6220. Definitions
“Registered Reporting ADF ECN” means a member of FINRA that is an electronic communications network (“ECN”) that elects to display orders in the ADF.Incorrect
FINRA Alternative Display Facility (ADF) Rule 6200 Series
6220. Definitions
“Registered Reporting ADF ECN” means a member of FINRA that is an electronic communications network (“ECN”) that elects to display orders in the ADF. -
Question 6 of 10
6. Question
What should be done when a member is seeking registration as an ADF Market Participant?
I. Execute the Certification Record, as defined in Rule 6220
II. Execute a Participant Agreement with FINRA at least nine months (or such other shorter time period as may be designated by FINRA) prior to quoting or reporting trades on the ADF
III. File an application with FINRA in which the member specifies whether the member is seeking registration in Nasdaq and/or CQS securities
IV. Certifies the member’s good standing with FINRACorrect
FINRA Rule 6271. Registration as an ADF Market Maker or ADF ECN
A member is seeking registration as an ADF Market Participant shall:
I. Execute the Certification Record, as defined in Rule 6220
II. Execute a Participant Agreement with FINRA at least six months (or such other shorter time period as may be designated by FINRA) prior to quoting or reporting trades on the ADF
III. File an application with FINRA in which the member specifies whether the member is seeking registration in Nasdaq and/or CQS securities
IV. Certifies the member’s good standing with FINRAIncorrect
FINRA Rule 6271. Registration as an ADF Market Maker or ADF ECN
A member is seeking registration as an ADF Market Participant shall:
I. Execute the Certification Record, as defined in Rule 6220
II. Execute a Participant Agreement with FINRA at least six months (or such other shorter time period as may be designated by FINRA) prior to quoting or reporting trades on the ADF
III. File an application with FINRA in which the member specifies whether the member is seeking registration in Nasdaq and/or CQS securities
IV. Certifies the member’s good standing with FINRA -
Question 7 of 10
7. Question
Which of the following refer to Cancellation of Contracts?
I. Pursuant to Rule 11110, the Committee may cancel or terminate “when, as and if issued” and “when, as and if distributed” contracts as necessary to resolve conflicts over the settlement of such contracts
II. Contracts will be cancelled if the securities are not to be issued or distributed
III. Contracts will generally be cancelled if the securities which are to be issued or distributed are not substantially the same as those contemplated in the contract. Material changes which will generally result in cancellation include, but are not limited to, changes to the redemption schedule, dividend payments, interest rates, maturity, yield, and exercise price
IV. A date for the settlement of “when, as and if issued” and “when, as and if distributed” contracts shall be determined by the Committee when a sufficient percentage of the issue is outstandingCorrect
Cancellation of Contracts:
I. Pursuant to Rule 11110, the Committee may cancel or terminate “when, as and if issued” and “when, as and if distributed” contracts as necessary to resolve conflicts over the settlement of such contracts
II. Contracts will be cancelled if the securities are not to be issued or distributed
III. Contracts will generally be cancelled if the securities which are to be issued or distributed are not substantially the same as those contemplated in the contract. Material changes which will generally result in cancellation include, but are not limited to, changes to the redemption schedule, dividend payments, interest rates, maturity, yield, and exercise priceIncorrect
Cancellation of Contracts:
I. Pursuant to Rule 11110, the Committee may cancel or terminate “when, as and if issued” and “when, as and if distributed” contracts as necessary to resolve conflicts over the settlement of such contracts
II. Contracts will be cancelled if the securities are not to be issued or distributed
III. Contracts will generally be cancelled if the securities which are to be issued or distributed are not substantially the same as those contemplated in the contract. Material changes which will generally result in cancellation include, but are not limited to, changes to the redemption schedule, dividend payments, interest rates, maturity, yield, and exercise price -
Question 8 of 10
8. Question
All transactions in securities, except “cash” transactions, shall be in which of the following?
I. “ex-dividend”
II. “ex-rights”
III. “ex-shares”
IV. “ex-warrantsCorrect
FINRA/Nasdaq Uniform Practice Codes
Rule 11140. Transactions in Securities “Ex-Dividend,” “Ex-Rights” or “Ex-Warrants”
(a) Designation of Ex-Date
All transactions in securities, except “cash” transactions, shall be “ex-dividend,” “ex-rights” or “ex-warrants”:Incorrect
FINRA/Nasdaq Uniform Practice Codes
Rule 11140. Transactions in Securities “Ex-Dividend,” “Ex-Rights” or “Ex-Warrants”
(a) Designation of Ex-Date
All transactions in securities, except “cash” transactions, shall be “ex-dividend,” “ex-rights” or “ex-warrants”: -
Question 9 of 10
9. Question
All transactions, except “cash” transactions, in bonds or similar evidences of indebtedness which are traded “flat” shall be “ex-interest” as prescribed by which of the following provisions?
I. On the first business day preceding the record date if the record date falls on a business day
II. On the second business day preceding the record date if the record date falls on a day other than a business day
III. On the second business day preceding the date on which an interest payment is to be made if no record date has been fixed
IV. On the first business day preceding liquidating payments or payments on account of principal in accordance with the formula set forth in Rules 11140 and 11150Correct
FINRA Rule 11150. Transactions “Ex-Interest” in Bonds Which Are Dealt in “Flat”
(a) Normal Ex-Interest Dates
All transactions, except “cash” transactions, in bonds or similar evidences of indebtedness which are traded “flat” shall be “ex-interest” as prescribed by the following provisions:
(1) On the first business day preceding the record date if the record date falls on a business day.(2) On the second business day preceding the record date if the record date falls on a day other than a business day.
(3) On the second business day preceding the date on which an interest payment is to be made if no record date has been fixed.
Incorrect
FINRA Rule 11150. Transactions “Ex-Interest” in Bonds Which Are Dealt in “Flat”
(a) Normal Ex-Interest Dates
All transactions, except “cash” transactions, in bonds or similar evidences of indebtedness which are traded “flat” shall be “ex-interest” as prescribed by the following provisions:
(1) On the first business day preceding the record date if the record date falls on a business day.(2) On the second business day preceding the record date if the record date falls on a day other than a business day.
(3) On the second business day preceding the date on which an interest payment is to be made if no record date has been fixed.
-
Question 10 of 10
10. Question
Which of the following is the delivery date of “Buyer’s Option”?
Correct
FINRA Rule 11320. Dates of Delivery
“Buyer’s Option”
In connection with a transaction “buyer’s option,” delivery shall be made at the office of the purchaser on the date on which the option expires.Incorrect
FINRA Rule 11320. Dates of Delivery
“Buyer’s Option”
In connection with a transaction “buyer’s option,” delivery shall be made at the office of the purchaser on the date on which the option expires.