Wiley Series 24 Securities Licensing Exam Review 2019 + Test Bank
John Wiley & Sons Inc (Verlag)
978-1-119-55400-4 (ISBN)
Passing the General Securities Principal Qualification Examination (Series 24) qualifies an individual to act as a principal of a general securities broker-dealer and to supervise the firm and its agents. The exam covers the supervision of such areas as investment banking, underwriting, and research practices; trading and market-making; brokerage office operations; and sales practices and agents, as well as compliance with financial responsibility rules. Candidates must have passed the Series 62 or Series 7 prior to taking the Series 24 Exam.
Created by the experts at The Securities Institute of America, Inc., Wiley Series 24 Exam Review 2019 arms you with everything you need to pass this intensive 150-question test. Designed to help you build and fine-tune your knowledge of all areas covered in the exam and to guarantee that you're prepared mentally and strategically to take the test, it provides:
Dozens of examples
Assorted practice questions for each subject area covered in the exam
Priceless test-taking tips and strategies
Helpful hints on how to study for the test, manage stress, and stay focused
Wiley Series 24 Exam Review 2019 is your ticket to passing the Series 24 test on the first try—with flying colors!
Wiley empowers learners, researchers, universities, and corporations to achieve their goals in an ever-changing world. For over 200 years, Wiley has been helping people and organizations develop the skills and knowledge they need to succeed. Wiley develops digital education, learning, assessment, and certification solutions to help universities, businesses, and individuals move between education and employment and achieve their ambitions. By partnering with learned societies, we support researchers to communicate discoveries that make a difference. Our online scientific, technical, medical, and scholarly journals, books, and other digital content build on a 200-year heritage of quality publishing.
ABOUT THE SERIES 24 EXAM xix
ABOUT THIS BOOK xxiii
ABOUT THE TEST BANK xxiv
ABOUT THE SECURITIES INSTITUTE OF AMERICA xxv
CHAPTER 1 BROKERAGE OFFICE PROCEDURES 1
Hiring New Employees 1
Resignation of a Registered Representative 2
Registration Exemptions 4
Persons Ineligible to Register 4
Disciplinary Actions against a Registered Representative 5
Termination for Cause 6
Outside Employment 6
Private Securities Transactions 7
Gift Rule 7
Sharing in a Customer’s Account 8
Borrowing and Lending Money 9
Order Tickets 9
Executing an Order 10
Becoming a Stockholder 11
Violation 12
Clearly Erroneous Reports 12
Execution Errors 12
Corporate and Municipal Securities Settlement Options 13
When-Issued Securities 15
Government Securities Settlement Options 15
Accrued Interest 16
Close Outs 17
Customer Confirmations 17
Rules for Good Delivery 19
Rejection of Delivery 20
Delivery of Round Lots 20
Delivery of Bond Certificates 21
Reclamation 21
Marking to the Market 21
Customer Account Statements 22
Carrying of Customer Accounts 22
Dividend Distribution 23
Pretest 27
CHAPTER 2 RECORD KEEPING, FINANCIAL REQUIREMENTS, AND REPORTING 31
Blotters 31
General Ledger 32
Customer Accounts 32
Subsidiary (Secondary) Records 32
Securities Position Book (Ledger) Stock Record 32
Order Tickets 33
Confirmations and Notices 33
Monthly Trial Balances and Net Capital Computations 33
Employment Applications 33
Records Required to Be Maintained for Three Years 33
Records Required to Be Maintained for Six Years 34
Records Required to Be Maintained for the Life of the Firm 34
Requirement to Prepare and Maintain Records under SEC 17a-3 and 17a-4 36
Financial Requirements 37
Aggregate Indebtedness 40
Haircuts 40
Box Counts 42
Missing and Lost Securities 42
The Customer Protection Rule 43
The Early Warning Rule 47
FINRA Financial Requirements 48
Subordinated Loans 49
Temporary Subordination Agreements 50
Calculating Net Capital 51
Fidelity Bonds 51
Pretest 53
CHAPTER 3 ISSUING CORPORATE SECURITIES 59
The Prospectus 60
The Final Prospectus 61
Free Writing Prospectus 61
Providing the Prospectus to Aftermarket Purchasers 62
SEC Disclaimer 62
Misrepresentations 63
Tombstone Ads 63
Free Riding and Withholding/FINRA Rule 5130 64
Underwriting Corporate Securities 65
Types of Underwriting Commitments 66
Types of Offerings 68
Awarding the Issue 68
The Underwriting Syndicate 69
Selling Group 69
Underwriter’s Compensation 69
Underwriting Spread 70
Factors That Determine the Size of the Underwriting Spread 71
Review of Underwriting Agreements by FINRA 71
Underwriter’s Compensation 71
Unreasonable Compensation 72
Offering of Securities by FINRA Members 73
Exempt Securities 74
Exempt Transactions 75
Crowdfunding 81
Rule 147 Intrastate Offering 82
Rule 137 Nonparticipants 83
Rule 138 Nonequivalent Securities 83
Rule 139 Issuing Research Reports 83
Rule 415 Shelf Registration 84
Securities Offering Reform Rules 85
SEC Rule 405 85
Additional Communication Rules 86
DPP Roll-Up Transactions 87
Pretest 89
CHAPTER 4 TRADING SECURITIES 93
Types of Orders 93
The Exchanges 97
Priority of Exchange Orders 98
The Role of the Designated Market Maker 98
Crossing Stock 101
Do Not Reduce (DNR) 101
Adjustments for Stock Splits 102
Stopping Stock 103
Commission House Broker 104
Two-Dollar Broker 104
Registered Traders 104
Super Display Book (SDBK) 104
Short Sales 105
Affirmative Determination 105
Regulation SHO 106
Rule 200 Definitions and Order Marking 106
Rule 203 Security Borrowing and Delivery Requirements 107
Threshold Securities 108
Block Trades 109
Trading Along 110
Circuit Breakers 110
Limit up Limit down (LULD) 111
Listing Requirements for the NYSE 111
Reading the Consolidated Tape 112
Exchange Qualifiers 114
Over-the-Counter/Nasdaq 114
High Frequency and Algorithmic Trading 125
Market Centers 127
SEC Regulation NMS 128
SEC Regulation ATS 128
Direct Market Access 129
Nasdaq International 131
Non-Nasdaq OTCBB 131
Pink OTC Market 132
Third Market 132
Nasdaq Market Center for Listed Securities 132
Fourth Market 133
Nasdaq Listing Standards 133
Market Maker Regulations and Responsibilities 134
Times for Entering a Quote 134
Withdrawing Quotes 137
Handling and Displaying Customer Limit Orders 138
The Order Audit Trail System (OATS) 140
The Manning Rule 141
Automated Confi rmation System (ACT)/Trade Reporting Facility (TRF) 141
ACT Trade Scan 142
Nasdaq Trade Reporting Facility (TRF) 142
Step Out Trades 146
Market Making During Syndication 147
Regulation M, Rule 101 147
Penalty Bids 148
Regulation M, Rule 102 148
Regulation M, Rule 103 148
Passive Market Makers’ Daily Purchase Limit 149
Regulation M, Rule 104 149
Syndicate Short Positions 151
Regulation M, Rule 105 151
Trade Reporting and Compliance Engine (TRACE) 151
Broker vs. Dealer 154
FINRA 5 Percent Markup Policy 154
Markups/Markdowns When Acting as a Principal 155
Riskless Principal Transactions 156
Proceeds Transactions 157
Dominated and Controlled Markets 157
Net Transactions with Customers 158
Firm Quote Rule 158
The Firm Quote Compliance System (FQCS) 159
Trade Complaints between Members 159
Rogue Trading Prevention 160
Arbitrage 160
Pretest 163
CHAPTER 5 RECOMMENDATIONS TO CUSTOMERS 169
Investment Objectives 170
Capital Asset Pricing Model (CAPM) 172
Risk vs. Reward 172
Alpha 174
Beta 175
Developing the Client Profi le 175
Suitability Standards 176
Professional Conduct when Making Recommendations 177
Recommending Mutual Funds 178
Periodic Payment Plans 179
Mutual Fund Current Yield 179
Fair Dealings with Customers 179
Recommendations to an Institutional Customer 183
Short Sales in Connection with Recommendations 184
Issuing Research Reports 184
Regulation FD 187
Recommendations through Social Media 187
Pretest 191
CHAPTER 6 GENERAL SUPERVISION 195
The Role of the Principal 195
Supervisor Qualifications and Prerequisites 196
Continuing Education 197
Tape Recording Employees 199
Heightened Supervisory Requirements 199
Information Obtained from an Issuer 200
Customer Complaints 200
Investor Information 201
Member Offices 201
Annual Compliance Review 203
Business Continuity Plan 204
Currency Transactions 204
The Patriot Act 205
U.S. Accounts 206
Foreign Accounts 206
Identity Theft 207
FINRA Rules on Financial Exploitation of Seniors 207
Pretest 209
CHAPTER 7 CUSTOMER ACCOUNTS 213
Holding Securities 215
The Depository Trust Company (DTC) 216
Mailing Instructions 217
Individual Account 217
Joint Account 217
Joint Tenants with Rights of Survivorship (JTWROS) 217
Joint Tenants in Common (JTIC) 218
Transfer on Death (TOD) 218
Death of a Customer 218
Corporate Accounts 219
Trust Accounts 219
Partnership Accounts 220
Trading Authorization 220
Operating a Discretionary Account 220
Managing Discretionary Accounts 221
Third-Party and Fiduciary Accounts 221
Uniform Gifts to Minors Act (UGMA) 223
ABLE Accounts 225
Accounts for Employees of Other Broker Dealers 226
Numbered Accounts 226
Prime Brokerage Accounts 226
Account Transfer 227
Margin Accounts 228
Guaranteeing a Customer’s Account 230
Day Trading Accounts 230
Commingling Customer’s Pledged Securities 230
Wrap Accounts 231
Regulation S-P 231
Pretest 233
CHAPTER 8 MARGIN ACCOUNTS 237
Regulation of Credit 237
House Rules 240
Establishing a Long Position in a Margin Account 240
An Increase in the Long Market Value 241
Special Memorandum Account (SMA) Long Margin Account 243
A Decrease in the Long Market Value 244
The Minimum Equity Requirement for Long Margin Accounts 245
Establishing a Short Position in a Margin Account 246
A Decrease in the Short Market Value 247
An Increase in the Short Market Value 248
The Minimum Equity Requirement for Short Margin Accounts 249
Margin Requirements for Day Trading 250
Combined Margin Accounts 251
Portfolio Margin Accounts 252
Securities Backed Lines of Credit 252
Minimum Margin for Leveraged ETFs 253
Pretest 255
CHAPTER 9 INVESTMENT COMPANIES 259
Investment Company Philosophy 259
Types of Investment Companies 260
Open-End vs. Closed-End Funds 261
Exchange-Traded Funds (ETFs) 262
Exchange-Traded Notes (ETNs) 262
ETFs That Track Alternatively Weighted Indices 263
Diversified vs. NonDiversified 263
Investment Company Registration 264
Registration Requirements 264
Investment Company Components 266
Mutual Fund Distribution 269
Selling Group Member 269
Distribution of No-Load Mutual Fund Shares 270
Distribution of Mutual Fund Shares 270
Mutual Fund Prospectus 270
Additional Disclosures by a Mutual Fund 272
Anti-Reciprocal Rule 272
Money Market Funds 273
Valuing Mutual Fund Shares 273
Changes in the NAV 274
Sales Charges for Open-End Funds 275
Sales Charges for Closed-End Funds 275
Front-End Loads 275
Back-End Loads 276
Other Types of Sales Charges 276
Recommending Mutual Funds 277
12B-1 Fees 277
Calculating a Mutual Fund’s Sales Charge Percentage 278
Finding the Public Offering Price 279
Sales Charge Reductions 279
Breakpoint Schedule 280
Letter of Intent 280
Breakpoint Sales 281
Rights of Accumulation 281
Automatic Reinvestment of Distributions 282
Combination Privileges 282
Conversion or Exchange Privileges 282
30-Day Emergency Withdrawal 283
Voting Rights 283
Yields 284
Portfolio Turnover 284
Voluntary Accumulation Plans 284
Dollar-Cost Averaging 285
Contractual Accumulation Plans 286
Hedge Funds 287
Floating Rate Bank Loan Funds 288
Structured Retail Products/SRPs 288
Real Estate Investment Trusts (REITs) 289
Non-Traded REITs 289
Pretest 291
CHAPTER 10 VARIABLE ANNUITIES AND RETIREMENT PLANS 295
Annuities 295
Annuity Purchase Options 300
Accumulation Units 301
Annuity Units 301
Annuity Payout Options 302
Factors Affecting the Size of the Annuity Payment 303
Taxation 304
Sales Charges 304
Variable Annuity vs. Mutual Fund 304
Retirement Plans 305
Individual Plans 305
Individual Retirement Accounts (IRAs) 305
Keogh Plans (HR-10) 311
Tax-Sheltered Annuities (TSAs) and Tax-Deferred Accounts (TDAs) 312
Corporate Plans 314
Employee Stock Ownership Plans (ESOPs) 316
Profit-Sharing Plans 316
401(k)s and Thrift Plans 316
Rolling Over a Pension Plan 317
Employee Retirement Income Security Act of 1974 (ERISA) 317
The Department of Labor Fiduciary Rules 318
Pretest 321
CHAPTER 11 SECURITIES INDUSTRY RULES AND REGULATIONS 325
The Securities Exchange Act of 1934 325
The Securities and Exchange Commission (SEC) 326
Extension of Credit 327
Trading Suspensions 327
Issuers Repurchasing Their Own Securities 327
Tender Offers 329
SEC Reporting 330
The National Association of Securities Dealers (NASD) 331
Becoming a Member of FINRA 333
Foreign Broker Dealers 335
Compensation Paid to Unregistered Persons 335
Registration of Agents/Associated Persons 335
Retiring Representatives/Continuing Commissions 336
State Registration 336
Retail Communications/Communications with the Public 337
FINRA Rule 2210 Communications with the Public 338
Broker Dealer Websites 340
Blind Recruiting Ads 341
Generic Advertising 341
Tombstone Ads 341
Testimonials 342
Free Services 342
Misleading Communications 343
Securities Investor Protection Corporation Act of 1970 343
Customer Coverage 343
The Securities Acts Amendments of 1975 345
The Insider Trading and Securities Fraud Enforcement Act of 1988 345
Firewall 346
The Trust Indenture Act of 1939 346
Telemarketing Rules 346
The Penny Stock Cold Call Rule 347
Violations and Complaints 348
Resolution of Allegations 349
Minor Rule Violation 349
Electronic Blue Sheets 350
Mediation 350
Code of Arbitration 351
The Arbitration Process 351
Political Contributions 353
Investment Adviser Registration 354
Investment Adviser Representative 355
The National Securities Markets Improvement Act of 1996 355
Investment Adviser Registration 356
Investment Adviser Capital Requirements 356
Exams for Investment Advisers 357
Investment Adviser Advertising and Sales Literature 357
Investment Adviser Brochure Delivery 358
Soft Dollars 358
Broker Dealers on the Premises of Other Financial Institutions 360
The Uniform Securities Act 361
Sarbanes-Oxley Act 361
SEC Regulation S-K 363
SEC Regulation M-A 363
The Hart-Scott-Rodino Act 365
FINRA Rule 5150 (Fairness Opinion) 366
SEC Regulation S-X 366
Pretest 369
ANSWER KEYS 375
APPENDIX 385
GLOSSARY OF EXAM TERMS 419
INDEX 485
| Erscheinungsdatum | 17.01.2019 |
|---|---|
| Verlagsort | New York |
| Sprache | englisch |
| Maße | 217 x 274 mm |
| Gewicht | 1196 g |
| Themenwelt | Wirtschaft ► Allgemeines / Lexika |
| Wirtschaft ► Betriebswirtschaft / Management ► Finanzierung | |
| Betriebswirtschaft / Management ► Spezielle Betriebswirtschaftslehre ► Bankbetriebslehre | |
| ISBN-10 | 1-119-55400-4 / 1119554004 |
| ISBN-13 | 978-1-119-55400-4 / 9781119554004 |
| Zustand | Neuware |
| Haben Sie eine Frage zum Produkt? |
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