Quiz-summary
0 of 10 questions completed
Questions:
- 1
- 2
- 3
- 4
- 5
- 6
- 7
- 8
- 9
- 10
Information
certdemy practice questions
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
When a member’s written policies and procedures prohibit investment banking department personnel directly or indirectly, which of the following statements is true?
Correct
2242. Debt Research Analysts and Debt Research Reports
Identifying and Managing Conflicts of Interest
A member’s written policies and procedures prohibit investment banking department personnel from directly or indirectly:
(i) directing a debt research analyst to engage in sales or marketing efforts related to an investment banking services transaction; and
(ii) directing a debt research analyst to engage in any communication with a current or prospective customer about an investment banking services transaction;Incorrect
2242. Debt Research Analysts and Debt Research Reports
Identifying and Managing Conflicts of Interest
A member’s written policies and procedures prohibit investment banking department personnel from directly or indirectly:
(i) directing a debt research analyst to engage in sales or marketing efforts related to an investment banking services transaction; and
(ii) directing a debt research analyst to engage in any communication with a current or prospective customer about an investment banking services transaction; -
Question 2 of 10
2. Question
When a member’s written policies and procedures restrict or limit debt research analyst account trading in securities, which of the following is true?
Correct
2242. Debt Research Analysts and Debt Research Reports
Identifying and Managing Conflicts of Interest
A member’s written policies and procedures restrict or limit debt research analyst account trading in securities, any derivatives of such securities and any fund whose performance is materially dependent upon the performance of securities covered by the debt research analyst, including:
(i) ensuring that debt research analyst accounts, supervisors of debt research analysts and associated persons with the ability to influence the content of debt research reports do not benefit in their trading from knowledge of the content or timing of a debt research report before the intended recipients of such debt research have had a reasonable opportunity to act on the information in the debt research report; and
(ii) providing that no debt research analyst account may purchase or sell any security or any option on or derivative of such security in a manner inconsistent with the research analyst’s recommendation as reflected in the most recent debt research report published by the member, and defining financial hardship circumstances, if any (e.g., unanticipated significant change in the personal financial circumstances of the beneficial owner of the research analyst account), in which the member will permit a debt research analyst account to trade in a manner inconsistent with such research analyst’s most recently published recommendation;Incorrect
2242. Debt Research Analysts and Debt Research Reports
Identifying and Managing Conflicts of Interest
A member’s written policies and procedures restrict or limit debt research analyst account trading in securities, any derivatives of such securities and any fund whose performance is materially dependent upon the performance of securities covered by the debt research analyst, including:
(i) ensuring that debt research analyst accounts, supervisors of debt research analysts and associated persons with the ability to influence the content of debt research reports do not benefit in their trading from knowledge of the content or timing of a debt research report before the intended recipients of such debt research have had a reasonable opportunity to act on the information in the debt research report; and
(ii) providing that no debt research analyst account may purchase or sell any security or any option on or derivative of such security in a manner inconsistent with the research analyst’s recommendation as reflected in the most recent debt research report published by the member, and defining financial hardship circumstances, if any (e.g., unanticipated significant change in the personal financial circumstances of the beneficial owner of the research analyst account), in which the member will permit a debt research analyst account to trade in a manner inconsistent with such research analyst’s most recently published recommendation; -
Question 3 of 10
3. Question
Regarding content and disclosure in debt research reports, which of the following is true when a member must establish, maintain and enforce written policies and procedures reasonably designed?
Correct
2242. Debt Research Analysts and Debt Research Reports
Content and Disclosure in Debt Research Reports
A member must establish, maintain and enforce written policies and procedures reasonably designed to ensure that:
(A) purported facts in its debt research reports are based on reliable information; and
(B) any recommendation or rating has a reasonable basis and is accompanied by a clear explanation of any valuation method used and a fair presentation of the risks that may impede achievement of the recommendation or rating.Incorrect
2242. Debt Research Analysts and Debt Research Reports
Content and Disclosure in Debt Research Reports
A member must establish, maintain and enforce written policies and procedures reasonably designed to ensure that:
(A) purported facts in its debt research reports are based on reliable information; and
(B) any recommendation or rating has a reasonable basis and is accompanied by a clear explanation of any valuation method used and a fair presentation of the risks that may impede achievement of the recommendation or rating. -
Question 4 of 10
4. Question
Regarding content and disclosure in debt research reports, which of the following statement(s) is incorrect?
Correct
2242. Debt Research Analysts and Debt Research Reports
Content and Disclosure in Debt Research Reports
A member that employs a rating system must clearly define in each debt research report the meaning of each rating in the system, including the time horizon and any benchmarks on which a rating is based. The definition of each rating must be consistent with its plain meaning.
(A) Irrespective of the rating system a member employs, a member must include in each debt research report limited to the analysis of an issuer of a debt security that includes a rating of the subject company the percentage of all subject companies rated by the member to which the member would assign a “buy,” “hold” or “sell” rating.
(B) A member must disclose in each debt research report the percentage of subject companies within each of the “buy,” “hold” and “sell” categories for which the member has provided investment banking services within the previous 12 months.
(C) The information required in paragraphs (c)(2)(A) and (B) of this Rule must be current as of the end of the most recent calendar quarter or the second most recent calendar quarter if the publication date of the debt research report is less than 15 calendar days after the most recent calendar quarter.Incorrect
2242. Debt Research Analysts and Debt Research Reports
Content and Disclosure in Debt Research Reports
A member that employs a rating system must clearly define in each debt research report the meaning of each rating in the system, including the time horizon and any benchmarks on which a rating is based. The definition of each rating must be consistent with its plain meaning.
(A) Irrespective of the rating system a member employs, a member must include in each debt research report limited to the analysis of an issuer of a debt security that includes a rating of the subject company the percentage of all subject companies rated by the member to which the member would assign a “buy,” “hold” or “sell” rating.
(B) A member must disclose in each debt research report the percentage of subject companies within each of the “buy,” “hold” and “sell” categories for which the member has provided investment banking services within the previous 12 months.
(C) The information required in paragraphs (c)(2)(A) and (B) of this Rule must be current as of the end of the most recent calendar quarter or the second most recent calendar quarter if the publication date of the debt research report is less than 15 calendar days after the most recent calendar quarter. -
Question 5 of 10
5. Question
While content and disclosure in debt research reports, which one of the following statements is true regarding debt research report?
Correct
2242. Debt Research Analysts and Debt Research Reports
Content and Disclosure in Debt Research Reports
If a debt research report limited to the analysis of an issuer of a debt security contains a rating for the subject company, and the member has assigned a rating to such subject company for at least one year, the debt research report must show each date on which a member has assigned a rating and the rating assigned on such date. The member must include this information for the period that the member has assigned any rating or for a three-year period, whichever is shorter.Incorrect
2242. Debt Research Analysts and Debt Research Reports
Content and Disclosure in Debt Research Reports
If a debt research report limited to the analysis of an issuer of a debt security contains a rating for the subject company, and the member has assigned a rating to such subject company for at least one year, the debt research report must show each date on which a member has assigned a rating and the rating assigned on such date. The member must include this information for the period that the member has assigned any rating or for a three-year period, whichever is shorter. -
Question 6 of 10
6. Question
Regarding content and disclosure in debt research reports, which of the following statement(s) is false when a member must disclose in any debt research report at the time of publication or distribution of the report?
Correct
2242. Debt Research Analysts and Debt Research Reports
Content and Disclosure in Debt Research Reports
A member must disclose in any debt research report at the time of publication or distribution of the report:
(A) if the debt research analyst or a member of the debt research analyst’s household has a financial interest in the debt or equity securities of the subject company (including, without limitation, any option, right, warrant, future, long or short position), and the nature of such interest;
(B) if the debt research analyst has received compensation based upon (among other factors) the member’s investment banking, sales and trading or principal trading revenues;
(C) if the member or any of its affiliates:
(i) managed or co-managed a public offering of securities for the subject company in the past 12 months;
(ii) received compensation for investment banking services from the subject company in the past 12 months; or
(iii) expects to receive or intends to seek compensation for investment banking services from the subject company in the next three months;Incorrect
2242. Debt Research Analysts and Debt Research Reports
Content and Disclosure in Debt Research Reports
A member must disclose in any debt research report at the time of publication or distribution of the report:
(A) if the debt research analyst or a member of the debt research analyst’s household has a financial interest in the debt or equity securities of the subject company (including, without limitation, any option, right, warrant, future, long or short position), and the nature of such interest;
(B) if the debt research analyst has received compensation based upon (among other factors) the member’s investment banking, sales and trading or principal trading revenues;
(C) if the member or any of its affiliates:
(i) managed or co-managed a public offering of securities for the subject company in the past 12 months;
(ii) received compensation for investment banking services from the subject company in the past 12 months; or
(iii) expects to receive or intends to seek compensation for investment banking services from the subject company in the next three months; -
Question 7 of 10
7. Question
While content and disclosure in debt research reports, as of the end of the month immediately preceding the date of publication or distribution of a debt research report, how many days are for the publication date?
Correct
2242. Debt Research Analysts and Debt Research Reports
Content and Disclosure in Debt Research Reports
If, as of the end of the month immediately preceding the date of publication or distribution of a debt research report (or the end of the second most recent month if the publication date is less than 30 calendar days after the end of the most recent month) the member or its affiliates have received from the subject company any compensation for products or services other than investment banking services in the previous 12 months;Incorrect
2242. Debt Research Analysts and Debt Research Reports
Content and Disclosure in Debt Research Reports
If, as of the end of the month immediately preceding the date of publication or distribution of a debt research report (or the end of the second most recent month if the publication date is less than 30 calendar days after the end of the most recent month) the member or its affiliates have received from the subject company any compensation for products or services other than investment banking services in the previous 12 months; -
Question 8 of 10
8. Question
While content and disclosure in debt research reports, what is the time limit for the date of publication or distribution of the debt research report?
Correct
2242. Debt Research Analysts and Debt Research Reports
Content and Disclosure in Debt Research Reports
If the subject company is, or over the 12-month period preceding the date of publication or distribution of the debt research report has been, a client of the member, and if so, the types of services provided to the issuer. Such services, if applicable, shall be identified as either investment banking services, non-investment banking securities-related services or non-securities services;Incorrect
2242. Debt Research Analysts and Debt Research Reports
Content and Disclosure in Debt Research Reports
If the subject company is, or over the 12-month period preceding the date of publication or distribution of the debt research report has been, a client of the member, and if so, the types of services provided to the issuer. Such services, if applicable, shall be identified as either investment banking services, non-investment banking securities-related services or non-securities services; -
Question 9 of 10
9. Question
Regarding content and disclosure in debt research reports, what is the correct information about a member must disclose in any debt research report at the time of publication or distribution of the report?
Correct
2242. Debt Research Analysts and Debt Research Reports
Content and Disclosure in Debt Research Reports
A member must disclose in any debt research report at the time of publication or distribution of the report:
1. If the member trades or may trade as principal in the debt securities (or in related derivatives) that are the subject of the debt research report;
2. If the debt research analyst received any compensation from the subject company in the previous 12 months; and
3. Any other material conflict of interest of the debt research analyst or member that the debt research analyst or an associated person of the member with the ability to influence the content of a debt research report knows or has reason to know at the time of the publication or distribution of a debt research report.Incorrect
2242. Debt Research Analysts and Debt Research Reports
Content and Disclosure in Debt Research Reports
A member must disclose in any debt research report at the time of publication or distribution of the report:
1. If the member trades or may trade as principal in the debt securities (or in related derivatives) that are the subject of the debt research report;
2. If the debt research analyst received any compensation from the subject company in the previous 12 months; and
3. Any other material conflict of interest of the debt research analyst or member that the debt research analyst or an associated person of the member with the ability to influence the content of a debt research report knows or has reason to know at the time of the publication or distribution of a debt research report. -
Question 10 of 10
10. Question
While content and disclosure in debt research reports, how many subject companies does a member distributing debt research report that a member cover?
Correct
2242. Debt Research Analysts and Debt Research Reports
Content and Disclosure in Debt Research Reports
A member that distributes a debt research report covering six or more subject companies (a “compendium report”) may direct the reader in a clear manner as to where the reader may obtain applicable current disclosures required by this paragraph (c). Electronic compendium reports must include a hyperlink to the required disclosures. Paper-based compendium reports must provide either a toll-free number to call or a postal address to request the required disclosures and also may include a web address of the member where the disclosures can be found.Incorrect
2242. Debt Research Analysts and Debt Research Reports
Content and Disclosure in Debt Research Reports
A member that distributes a debt research report covering six or more subject companies (a “compendium report”) may direct the reader in a clear manner as to where the reader may obtain applicable current disclosures required by this paragraph (c). Electronic compendium reports must include a hyperlink to the required disclosures. Paper-based compendium reports must provide either a toll-free number to call or a postal address to request the required disclosures and also may include a web address of the member where the disclosures can be found.