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Question 1 of 10
1. Question
In the FINRA Rule 11810 (Buy-In Procedures and Requirements), which of the following statement(s) is/are correct when the Uniform Practice Code Committee may, in its discretion, issue notification that all open contracts with the member in question may be closed-out immediately?
Correct
In the FINRA Rule 11810 (Buy-In Procedures and Requirements), the Uniform Practice Code Committee may, in its discretion, issue notification that all open contracts with the member in question may be closed-out immediately on following conditions:-
(a) The Uniform Practice Code Committee ascertains that a court has appointed a receiver for any member because of its insolvency or failure to meet its obligations.
(b) The Uniform Practice Code Committee ascertains, based upon the evidence before it, that a member cannot meet its obligations as they become due and that such action will be in the public interest.Incorrect
In the FINRA Rule 11810 (Buy-In Procedures and Requirements), the Uniform Practice Code Committee may, in its discretion, issue notification that all open contracts with the member in question may be closed-out immediately on following conditions:-
(a) The Uniform Practice Code Committee ascertains that a court has appointed a receiver for any member because of its insolvency or failure to meet its obligations.
(b) The Uniform Practice Code Committee ascertains, based upon the evidence before it, that a member cannot meet its obligations as they become due and that such action will be in the public interest. -
Question 2 of 10
2. Question
In the FINRA Rule 11810 (Buy-In Procedures and Requirements), which of the following statement is correct for the term “close-out immediately” that is notified by the Uniform Practice Code Committee for all open contracts with the member in question?
Correct
In the FINRA Rule 11810 (Buy-In Procedures and Requirements), the following statements are correct for the term “close-out immediately” that is notified by the Uniform Practice Code Committee for the all open contracts with the member in question:-
(a) “buy-ins” may be executed without prior notice of intent to “buy-in”.
(b) “sell-outs” may be executed without making prior delivery of the securities called for.Incorrect
In the FINRA Rule 11810 (Buy-In Procedures and Requirements), the following statements are correct for the term “close-out immediately” that is notified by the Uniform Practice Code Committee for the all open contracts with the member in question:-
(a) “buy-ins” may be executed without prior notice of intent to “buy-in”.
(b) “sell-outs” may be executed without making prior delivery of the securities called for. -
Question 3 of 10
3. Question
In the FINRA Rule 11810 (Buy-In Procedures and Requirements), at what time before the notification of all close-outs should immediately be sent to the member pursuant to the confirmation provisions of the Rule 11200 Series?
Correct
In the FINRA Rule 11810 (Buy-In Procedures and Requirements), all close-outs shall be executed for the account and liability of the member in question. Notification of all close-outs shall immediately be sent to such member pursuant to the confirmation provisions of the Rule 11200 Series at least thirty minutes before such close-out.
Incorrect
In the FINRA Rule 11810 (Buy-In Procedures and Requirements), all close-outs shall be executed for the account and liability of the member in question. Notification of all close-outs shall immediately be sent to such member pursuant to the confirmation provisions of the Rule 11200 Series at least thirty minutes before such close-out.
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Question 4 of 10
4. Question
In the FINRA Rule 11810 (Buy-In Procedures and Requirements), which of the following statement(s) is/are correct for contracts made for “cash,” or made for or amended to include guaranteed delivery on a specified date?
Correct
In the FINRA Rule 11810 (Buy-In Procedures and Requirements), Contracts made for “cash,” or made for or amended to include guaranteed delivery on a specified date may be “bought-in” without notice during the normal trading hours on the day following the date delivery is due on the contract.
Incorrect
In the FINRA Rule 11810 (Buy-In Procedures and Requirements), Contracts made for “cash,” or made for or amended to include guaranteed delivery on a specified date may be “bought-in” without notice during the normal trading hours on the day following the date delivery is due on the contract.
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Question 5 of 10
5. Question
In the FINRA Rule 11810 (Buy-In Procedures and Requirements), which of the following type of section or desk with adequately staffed to process and research all “buy-ins” within the required time frames should be held by members?
Correct
In the FINRA Rule 11810 (Buy-In Procedures and Requirements), members shall have a “buy-in” section or desk with adequately staffed to process and research all “buy-ins” within the required time frames.
Incorrect
In the FINRA Rule 11810 (Buy-In Procedures and Requirements), members shall have a “buy-in” section or desk with adequately staffed to process and research all “buy-ins” within the required time frames.
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Question 6 of 10
6. Question
In the FINRA Rule 11810 (Buy-In Procedures and Requirements), which of the following statement(s) is/are correct where securities have been delivered by the seller after the “buy-in” order has been placed by the party affecting the “buy-in”?
Correct
In the FINRA Rule 11810 (Buy-In Procedures and Requirements), where securities have been delivered by the seller after the “buy-in” order has been placed by the party affecting the “buy-in,” the securities may be returned to the seller if the “buy-in” was executed in accordance with FINRA Rule 11810 before it could reasonably be canceled by the initiating party.
Incorrect
In the FINRA Rule 11810 (Buy-In Procedures and Requirements), where securities have been delivered by the seller after the “buy-in” order has been placed by the party affecting the “buy-in,” the securities may be returned to the seller if the “buy-in” was executed in accordance with FINRA Rule 11810 before it could reasonably be canceled by the initiating party.
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Question 7 of 10
7. Question
In the FINRA Rule 11820 (Selling-Out), which of the following action should be taken by the seller if the buyer fails to accept delivery in accordance with the terms of the contract, and lacking a properly executed Uniform Reclamation Form or the equivalent depository generated advice for depository eligible securities meeting the requirements prescribed in Rule 11710(b)?
Correct
In the FINRA Rule 11820 (Selling-Out), upon failure of the buyer to accept delivery in accordance with the terms of the contract, and lacking a properly executed Uniform Reclamation Form or the equivalent depository generated advice for depository eligible securities meeting the requirements prescribed in Rule 11710(b), the seller may, without notice, “sell-out” in the best available market and for the account and liability of the party in default all or any part of the securities due or deliverable under the contract.
Incorrect
In the FINRA Rule 11820 (Selling-Out), upon failure of the buyer to accept delivery in accordance with the terms of the contract, and lacking a properly executed Uniform Reclamation Form or the equivalent depository generated advice for depository eligible securities meeting the requirements prescribed in Rule 11710(b), the seller may, without notice, “sell-out” in the best available market and for the account and liability of the party in default all or any part of the securities due or deliverable under the contract.
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Question 8 of 10
8. Question
In the FINRA Rule 11840 (Rights and Warrants), the transactions in rights to subscribe shall be on the basis of one right accruing to each share of issued stock and the unit of trading in rights shall be in how many rights?
Correct
In the FINRA Rule 11840 (Rights and Warrants), except as otherwise designated by the Committee, transactions in rights to subscribe shall be on the basis of one right accruing to each share of issued stock and the unit of trading in rights shall be 100 rights (unless otherwise specified).
Incorrect
In the FINRA Rule 11840 (Rights and Warrants), except as otherwise designated by the Committee, transactions in rights to subscribe shall be on the basis of one right accruing to each share of issued stock and the unit of trading in rights shall be 100 rights (unless otherwise specified).
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Question 9 of 10
9. Question
In the FINRA Rule 11840 (Rights and Warrants), the transactions in-stock purchase warrants shall be on the basis of one warrant representing the right of the purchaser to receive one warrant in settlement of such transaction and the unit of trading shall be in how many warrants?
Correct
In the FINRA Rule 11840 (Rights and Warrants), except as otherwise agreed or designated by the Committee, transactions in-stock purchase warrants shall be on the basis of one warrant representing the right of the purchaser to receive one warrant in settlement of such transaction and the unit of trading shall be 100 warrants.
Incorrect
In the FINRA Rule 11840 (Rights and Warrants), except as otherwise agreed or designated by the Committee, transactions in-stock purchase warrants shall be on the basis of one warrant representing the right of the purchaser to receive one warrant in settlement of such transaction and the unit of trading shall be 100 warrants.
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Question 10 of 10
10. Question
In the FINRA Rule 11840 (Rights and Warrants), deliveries effected more than how many days after expiration should consist of expired securities if contracts for warrants, rights or other securities have expired by their terms?
Correct
In the FINRA Rule 11840 (Rights and Warrants), In contracts for warrants, rights or other securities which have expired by their terms, deliveries affected more than 30 days after expiration shall be consist of the following:-
(a) The expired securities.
(b) A Letter of Indemnity in lieu of the expired instrument.Incorrect
In the FINRA Rule 11840 (Rights and Warrants), In contracts for warrants, rights or other securities which have expired by their terms, deliveries affected more than 30 days after expiration shall be consist of the following:-
(a) The expired securities.
(b) A Letter of Indemnity in lieu of the expired instrument.