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Question 1 of 9
1. Question
Which of the following requirements must the member may provide in Shelf-Registered Securities?
I. Obtains a current prospectus in effect with the SEC, meeting the requirements of Section 10 of the Securities Act, covering such securities
II. Has no reason to believe the Registration Statement is not in effect or that the issuer has been delinquent in filing such periodic reports as may be required of it with the SEC and is satisfied that such registration will be kept in effect and that the prospectus will be maintained on a current basis
III. Retains a copy of such Registration Statement, including the prospectus, in an easily accessible place in its files. Shelf-registered securities which do not meet all the conditions prescribed above shall have no value for purposes of this Rule
IV. Has reason to believe the Registration Statement is not in effect or that the issuer has been delinquent in filing such periodic reports as may be required of it with the SEC and is satisfied that such registration will be kept in effect and that the prospectus will be maintained on a current basisCorrect
According to FINRA rule 4210, the following requirements must the member may provide in Shelf-Registered Securities
(a) Obtains a current prospectus in effect with the SEC, meeting the requirements of Section 10 of the Securities Act, covering such securities
(b) Has no reason to believe the Registration Statement is not in effect or that the issuer has been delinquent in filing such periodic reports as may be required of it with the SEC and is satisfied that such registration will be kept in effect and that the prospectus will be maintained on a current basis
(c) Retains a copy of such Registration Statement, including the prospectus, in an easily accessible place in its files. Shelf-registered securities which do not meet all the conditions prescribed above shall have no value for purposes of this RuleIncorrect
According to FINRA rule 4210, the following requirements must the member may provide in Shelf-Registered Securities
(a) Obtains a current prospectus in effect with the SEC, meeting the requirements of Section 10 of the Securities Act, covering such securities
(b) Has no reason to believe the Registration Statement is not in effect or that the issuer has been delinquent in filing such periodic reports as may be required of it with the SEC and is satisfied that such registration will be kept in effect and that the prospectus will be maintained on a current basis
(c) Retains a copy of such Registration Statement, including the prospectus, in an easily accessible place in its files. Shelf-registered securities which do not meet all the conditions prescribed above shall have no value for purposes of this Rule -
Question 2 of 9
2. Question
Which of the following requirements may the member provide in the current market value of such securities “long” in the account?
I. Deducts any margin deficiencies in customers’ accounts based upon a margin requirement
II. Makes volume computations necessary to determine the amount of securities then saleable under Securities Act Rule 144(b)(2)
III. Values only that amount of such securities which are then saleable under Securities Act Rule 144(b)(2)
IV. Obtains a current prospectus in effect with the SEC, meeting the requirements of Section 10 of the Securities Act, covering such securitiesCorrect
According to FINRA rule 4210, the following requirements may the member provide in the current market value of such securities “long” in the account:
(a) Deducts any margin deficiencies in customers’ accounts based upon a margin requirement
(b) Makes volume computations necessary to determine the amount of securities then saleable under Securities Act Rule 144(b)(2)
(c) Values only that amount of such securities which are then saleable under Securities Act Rule 144(b)(2)Incorrect
According to FINRA rule 4210, the following requirements may the member provide in the current market value of such securities “long” in the account:
(a) Deducts any margin deficiencies in customers’ accounts based upon a margin requirement
(b) Makes volume computations necessary to determine the amount of securities then saleable under Securities Act Rule 144(b)(2)
(c) Values only that amount of such securities which are then saleable under Securities Act Rule 144(b)(2) -
Question 3 of 9
3. Question
Which of the following are the additional requirements for Shelf-Registered Securities and Other Control and Restricted Securities?
I. FINRA may at any time require reports from members showing relevant information as to the amount of credit extended on shelf-registered, and other control and restricted securities and the amount, if any, deducted from net capital due to such security positions
II. The greater of the aggregate credit agreed to be extended in writing or the aggregate credit that is actually extended to all customers on control and restricted securities of any one issue that exceeds 10 percent of the member’s excess net capital shall be deducted from net capital for purposes of determining a member’s status under Rule 4120
III. The amount of such aggregate credit extended, which has been deducted in computing net capital under SEA Rule 15c3-1 and, if applicable, Rule 4110(a), need not be included in this calculation. FINRA, upon written application, may reduce the deduction to net capital under Rule 4120 to 25 percent of such aggregate credit extended that exceeds 10 percent but is less than 15 percent of the member’s excess net capital
IV. The aggregate credit extended to all customers on all control and restricted securities (reduced by the amount of such aggregate credit which has been deducted in computing net capital under SEA Rule 15c3-1 and, if applicable, Rule 4110(a)), shall be deducted from net capital on the following basis for purposes of determining a member’s status under Rule 4120Correct
According to FINRA rule 4210, the additional requirements for Shelf-Registered Securities and Other Control and Restricted Securities are:
(a) FINRA may at any time require reports from members showing relevant information as to the amount of credit extended on shelf-registered, and other control and restricted securities and the amount, if any, deducted from net capital due to such security positions
(b) The greater of the aggregate credit agreed to be extended in writing or the aggregate credit that is actually extended to all customers on control and restricted securities of any one issue that exceeds 10 percent of the member’s excess net capital shall be deducted from net capital for purposes of determining a member’s status under Rule 4120
(c) The amount of such aggregate credit extended, which has been deducted in computing net capital under SEA Rule 15c3-1 and, if applicable, Rule 4110(a), need not be included in this calculation. FINRA, upon written application, may reduce the deduction to net capital under Rule 4120 to 25 percent of such aggregate credit extended that exceeds 10 percent but is less than 15 percent of the member’s excess net capital
(d) The aggregate credit extended to all customers on all control and restricted securities (reduced by the amount of such aggregate credit which has been deducted in computing net capital under SEA Rule 15c3-1 and, if applicable, Rule 4110(a)), shall be deducted from net capital on the following basis for purposes of determining a member’s status under Rule 4120Incorrect
According to FINRA rule 4210, the additional requirements for Shelf-Registered Securities and Other Control and Restricted Securities are:
(a) FINRA may at any time require reports from members showing relevant information as to the amount of credit extended on shelf-registered, and other control and restricted securities and the amount, if any, deducted from net capital due to such security positions
(b) The greater of the aggregate credit agreed to be extended in writing or the aggregate credit that is actually extended to all customers on control and restricted securities of any one issue that exceeds 10 percent of the member’s excess net capital shall be deducted from net capital for purposes of determining a member’s status under Rule 4120
(c) The amount of such aggregate credit extended, which has been deducted in computing net capital under SEA Rule 15c3-1 and, if applicable, Rule 4110(a), need not be included in this calculation. FINRA, upon written application, may reduce the deduction to net capital under Rule 4120 to 25 percent of such aggregate credit extended that exceeds 10 percent but is less than 15 percent of the member’s excess net capital
(d) The aggregate credit extended to all customers on all control and restricted securities (reduced by the amount of such aggregate credit which has been deducted in computing net capital under SEA Rule 15c3-1 and, if applicable, Rule 4110(a)), shall be deducted from net capital on the following basis for purposes of determining a member’s status under Rule 4120 -
Question 4 of 9
4. Question
Which of the following is true in Broker-Dealer Accounts?
Correct
According to FINRA ruke 4210, A member that has Broker-Dealer Accounts may carry the proprietary account of another broker-dealer, which is registered with the SEC .
Incorrect
According to FINRA ruke 4210, A member that has Broker-Dealer Accounts may carry the proprietary account of another broker-dealer, which is registered with the SEC .
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Question 5 of 9
5. Question
Which of the following contract means is used as reference for the term aggregate exercise price”?
I. If a single stock underlies the option contract
II. The exercise price of the option contract multiplied by the number of shares of the underlying stock covered by such option contract
III. If a treasury bond or Treasury note underlies the option contract
IV. The exercise price of the option contract deduct to the number of shares of the underlying stock covered by such option contractCorrect
According to FINRA rule 4210 the following are the contract means that used as reference for the term aggregate exercise price”:
(a) If a single stock underlies the option contract
(b) The exercise price of the option contract multiplied by the number of shares of the underlying stock covered by such option contract
(c) If a treasury bond or Treasury note underlies the option contractIncorrect
According to FINRA rule 4210 the following are the contract means that used as reference for the term aggregate exercise price”:
(a) If a single stock underlies the option contract
(b) The exercise price of the option contract multiplied by the number of shares of the underlying stock covered by such option contract
(c) If a treasury bond or Treasury note underlies the option contract -
Question 6 of 9
6. Question
Which if the following describes accrued interest?
I. The interest on the bonds for a full year, computed for the number of days elapsed since the previous interest date on the basis of a 360-day-year
II. Each calendar month shall be considered to be 1/12 of 360 days, or 30 days, and each period from a date in one month to the same date in the following month shall be considered to be 30 days
III. The interest on the bonds for the current full interest period, computed for the actual number of days elapsed since the previous interest date on the basis of actual number of calendar days in the current full interest period
IV. The actual elapsed days in each calendar month shall be used in determining the number of days in a periodCorrect
According to FINRA rule 4210 the following describes accrued interest:
(a) The interest on the bonds for a full year, computed for the number of days elapsed since the previous interest date on the basis of a 360-day-year
(b) Each calendar month shall be considered to be 1/12 of 360 days, or 30 days, and each period from a date in one month to the same date in the following month shall be considered to be 30 days
(c) The interest on the bonds for the current full interest period, computed for the actual number of days elapsed since the previous interest date on the basis of actual number of calendar days in the current full interest period
(d) The actual elapsed days in each calendar month shall be used in determining the number of days in a periodIncorrect
According to FINRA rule 4210 the following describes accrued interest:
(a) The interest on the bonds for a full year, computed for the number of days elapsed since the previous interest date on the basis of a 360-day-year
(b) Each calendar month shall be considered to be 1/12 of 360 days, or 30 days, and each period from a date in one month to the same date in the following month shall be considered to be 30 days
(c) The interest on the bonds for the current full interest period, computed for the actual number of days elapsed since the previous interest date on the basis of actual number of calendar days in the current full interest period
(d) The actual elapsed days in each calendar month shall be used in determining the number of days in a period -
Question 7 of 9
7. Question
How much does need by a member whose primary business consists of the clearance of options market-maker accounts in maintaining as net capital in Joint Back Office Arrangements?
Correct
According to FINRA rule 4210, the member whose primary business consists of the clearance of options market-maker accounts need minimum of $7million in in maintaining as net capital in Joint Back Office Arrangements.
Incorrect
According to FINRA rule 4210, the member whose primary business consists of the clearance of options market-maker accounts need minimum of $7million in in maintaining as net capital in Joint Back Office Arrangements.
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Question 8 of 9
8. Question
How much percent does need by the broker-dealer’s primary business in Clearance of option market maker accounts?
Correct
According to FINRA rule 4210, the by the broker-dealer’s primary business needs 60 percent in Clearance of option market maker accounts.
Incorrect
According to FINRA rule 4210, the by the broker-dealer’s primary business needs 60 percent in Clearance of option market maker accounts.
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Question 9 of 9
9. Question
What Shelf-Registered and Other Control and Restricted Securities mean?
Correct
According to FINRA rule 4210, Shelf-Registered and Other Control and Restricted Securities is the equity to be maintained in margin accounts of customers for securities which are the subject of a current and effective registration for a continuous or delayed offering (shelf-registered securities) shall be at least the amount of margin required.
Incorrect
According to FINRA rule 4210, Shelf-Registered and Other Control and Restricted Securities is the equity to be maintained in margin accounts of customers for securities which are the subject of a current and effective registration for a continuous or delayed offering (shelf-registered securities) shall be at least the amount of margin required.