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Flashcards in Regulations - Test Questions Deck (13)
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1
Q

The ______ decides which securities are marginable

A

Fed Reserve Board

2
Q

In-house margin rules are _____ stringent than FINRA rules

A

MORE - can only be more

In-house > FINRA > SEC

3
Q

The Fed Reserve board ONLY has the power to set margin requirements for ______ securities

A

non-exempt

4
Q

FINRA sets minimum margin requirements for both ____ and _____ securities

A

exempt and non-exempt

5
Q

Any short swing profits from insider trading must be _____ to the corporation

A

repaid

6
Q

“Established” customers for buying penny stocks have either deposited money with the BD for at least a ____ or have bought ____ or more penny stocks from that BD

A

at least a year, have bought at least 3 penny stocks prior

7
Q

An RR can only share commissions or pay referrals to other RRs at the same _____

A

BD

8
Q

In order to open a new account for a customer that wishes to buy IPOs, the customer must sign a ______

A

representation letter (“positive” affirmation and thereafter a “negative” affirmation every year)

9
Q

If an insider is a member of an investment club that wants to buy an IPO, he/she may only own up to _____

A

10%

10
Q

According to FINRA, “institutional clients” constitute banks, savings and loan, insurance companies, registered investment companies, registered investment advisers, employee benefit plans with at least 100 participants, gov’t entity or a person with at least $50m in assets for investment, BUT NOT a _____

A

real estate company

11
Q

Advertising under the umbrella of “retail communication” is defined as ____

A
  • TV
  • Radio
  • Newsprint
  • Billboards
  • Websites
  • Internet bulletin boards
12
Q

If an RR is sending electronic communications, they must be sent from a ______ location

A

supervised

13
Q

Institutional communications lists should be ______ from retail communications lists

A

walled off