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Question 1 of 10
1. Question
In the FINRA Rule 11740 (Marking to the Market), what is the penalty for a party that fails to comply with the demand for a deposit or refund?
Correct
In the FINRA Rule 11740 (Marking to the Market), failure of a party to comply with a demand for a deposit or refund shall entitle the party making the demand to close the contract without notice, by making offsetting purchase or sale contracts in the best available market for the account and liability of the party failing to comply with said demand.
Incorrect
In the FINRA Rule 11740 (Marking to the Market), failure of a party to comply with a demand for a deposit or refund shall entitle the party making the demand to close the contract without notice, by making offsetting purchase or sale contracts in the best available market for the account and liability of the party failing to comply with said demand.
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Question 2 of 10
2. Question
In the FINRA Rule 11740 (Marking to the Market), which of the following steps should be taken when a party making such offsetting purchase or sale contracts shall as promptly as possible on the day on which they are made?
Correct
In the FINRA Rule 11740 (Marking to the Market), the following steps should be taken when a party making such offsetting purchase or sale contracts shall as promptly as possible on the day on which they are made:-
(a) Notify the other party via letter, facsimile transmission, electronic mail, or other comparable written media.
(b) Mail or deliver formal confirmation of the same to the other party and a copy of said confirmation to the Committee.Incorrect
In the FINRA Rule 11740 (Marking to the Market), the following steps should be taken when a party making such offsetting purchase or sale contracts shall as promptly as possible on the day on which they are made:-
(a) Notify the other party via letter, facsimile transmission, electronic mail, or other comparable written media.
(b) Mail or deliver formal confirmation of the same to the other party and a copy of said confirmation to the Committee. -
Question 3 of 10
3. Question
In the FINRA Rule 11810 (Buy-In Procedures and Requirements), within how many days following the date of delivery was due, securities contract that has not been completed by the seller according to its terms may be closed by the buyer?
Correct
In the FINRA Rule 11810 (Buy-In Procedures and Requirements), a securities contract that has not been completed by the seller according to its terms may be closed by the buyer not sooner than the third business day following the date delivery was due.
Incorrect
In the FINRA Rule 11810 (Buy-In Procedures and Requirements), a securities contract that has not been completed by the seller according to its terms may be closed by the buyer not sooner than the third business day following the date delivery was due.
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Question 4 of 10
4. Question
In the FINRA Rule 11810 (Buy-In Procedures and Requirements), which of the following condition a securities contract that has not been completed by the seller according to its terms may not be closed by the buyer?
Correct
In the FINRA Rule 11810 (Buy-In Procedures and Requirements), the following condition a securities contract that has not been completed by the seller according to its terms may not be closed by the buyer:-
(a) Where the contract is subject to the “buy-in” requirements of a national securities exchange or a registered clearing agency, in which case, the requirements of the national securities exchange or registered clearing agency, as applicable, would apply.
(b) To transactions in securities exempted under Section 3(a)(12) of the Exchange Act.
(c) To transactions in municipal securities as defined in Section 3(a)(29) of the Exchange Act.
(d) To transactions in redeemable securities issued by companies registered under the Investment Company Act.
(e) To transactions in Direct Participation Program securities as defined in Rule 2310.Incorrect
In the FINRA Rule 11810 (Buy-In Procedures and Requirements), the following condition a securities contract that has not been completed by the seller according to its terms may not be closed by the buyer:-
(a) Where the contract is subject to the “buy-in” requirements of a national securities exchange or a registered clearing agency, in which case, the requirements of the national securities exchange or registered clearing agency, as applicable, would apply.
(b) To transactions in securities exempted under Section 3(a)(12) of the Exchange Act.
(c) To transactions in municipal securities as defined in Section 3(a)(29) of the Exchange Act.
(d) To transactions in redeemable securities issued by companies registered under the Investment Company Act.
(e) To transactions in Direct Participation Program securities as defined in Rule 2310. -
Question 5 of 10
5. Question
In the FINRA Rule 11810 (Buy-In Procedures and Requirements), at what time written notice of “buy-in” should be delivered to the seller’s office, two business days preceding the execution of the proposed “buy-in”?
Correct
In the FINRA Rule 11810 (Buy-In Procedures and Requirements), written notice of “buy-in” shall be delivered to the seller at its office not later than 12:00 noon, Eastern Time (ET), two business days preceding the execution of the proposed “buy-in”.
Incorrect
In the FINRA Rule 11810 (Buy-In Procedures and Requirements), written notice of “buy-in” shall be delivered to the seller at its office not later than 12:00 noon, Eastern Time (ET), two business days preceding the execution of the proposed “buy-in”.
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Question 6 of 10
6. Question
In the FINRA Rule 11810 (Buy-In Procedures and Requirements), what should be included in the delivery of a written notice of “buy-in”?
Correct
In the FINRA Rule 11810 (Buy-In Procedures and Requirements), for purposes of this Rule, written notice shall include an electronic notice through a medium that provides for an immediate return receipt capability. Such electronic media shall include but not be limited to facsimile transmission, a computerized network facility, or the electronic functionality of a registered clearing agency.
Incorrect
In the FINRA Rule 11810 (Buy-In Procedures and Requirements), for purposes of this Rule, written notice shall include an electronic notice through a medium that provides for an immediate return receipt capability. Such electronic media shall include but not be limited to facsimile transmission, a computerized network facility, or the electronic functionality of a registered clearing agency.
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Question 7 of 10
7. Question
In the FINRA Rule 11810 (Buy-In Procedures and Requirements), at what time a signed written response stating its rejection should be sent by the seller to the buyer if the seller does not accept the “buy-in” notice?
Correct
In the FINRA Rule 11810 (Buy-In Procedures and Requirements), If the seller receiving the “buy-in” notice does not accept such “buy-in” notice, it shall send a signed, written response to the buyer stating its rejection with respect thereto by no later than 6:00 p.m. ET on the date of issuance of such notice.
Incorrect
In the FINRA Rule 11810 (Buy-In Procedures and Requirements), If the seller receiving the “buy-in” notice does not accept such “buy-in” notice, it shall send a signed, written response to the buyer stating its rejection with respect thereto by no later than 6:00 p.m. ET on the date of issuance of such notice.
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Question 8 of 10
8. Question
In the FINRA Rule 11810 (Buy-In Procedures and Requirements), which of the following statement(s) is/are correct If the seller receiving the “buy-in” notice does not send a signed, written response to the buyer stating its rejection by no later than 6:00 p.m. ET on the date of issuance of the “buy-in” notice?
Correct
In the FINRA Rule 11810 (Buy-In Procedures and Requirements), If the seller receiving the “buy-in” notice does not send a signed, written response to the buyer stating its rejection of such “buy-in” notice by no later than 6:00 p.m. ET on the date of issuance of the “buy-in” notice, the notice shall be deemed to have been accepted by the seller.
Incorrect
In the FINRA Rule 11810 (Buy-In Procedures and Requirements), If the seller receiving the “buy-in” notice does not send a signed, written response to the buyer stating its rejection of such “buy-in” notice by no later than 6:00 p.m. ET on the date of issuance of the “buy-in” notice, the notice shall be deemed to have been accepted by the seller.
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Question 9 of 10
9. Question
In the FINRA Rule 11810 (Buy-In Procedures and Requirements), at what time on the date of execution of the buy-in, the execution party immediately notify the party for whose account the securities were bought as to the quantity purchased and the price paid?
Correct
In the FINRA Rule 11810 (Buy-In Procedures and Requirements), the party executing the “buy-in” shall immediately upon execution, but no later than 6:00 p.m. ET on the date of execution of the buy-in, notify the party for whose account the securities were bought as to the quantity purchased and the price paid.
Incorrect
In the FINRA Rule 11810 (Buy-In Procedures and Requirements), the party executing the “buy-in” shall immediately upon execution, but no later than 6:00 p.m. ET on the date of execution of the buy-in, notify the party for whose account the securities were bought as to the quantity purchased and the price paid.
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Question 10 of 10
10. Question
In the FINRA Rule 11810 (Buy-In Procedures and Requirements), which of the following action should be taken when a national securities exchange makes a ruling that all open contracts with a particular member, which is also a member of FINRA, should be closed-out immediately (or any similar ruling)?
Correct
In the FINRA Rule 11810 (Buy-In Procedures and Requirements), when a national securities exchange makes a ruling that all open contracts with a particular member, which is also a member of FINRA, should be closed-out immediately (or any similar ruling), members may close-out contracts as directed by the exchange.
Incorrect
In the FINRA Rule 11810 (Buy-In Procedures and Requirements), when a national securities exchange makes a ruling that all open contracts with a particular member, which is also a member of FINRA, should be closed-out immediately (or any similar ruling), members may close-out contracts as directed by the exchange.