Wiley Series 99 Exam Review 2013 + Test Bank: The Operations Professional Qualification Examination(Wiley FINRA)

The go-to guide to acing the Series 99 Exam! Passing the Operations Professional Qualification Exam (Series 99) qualifies an individual to perform a variety of operations functions in support of a broker-dealer. The exam covers the broker-dealer business at a fundamental level, standard operations functions, investor protection and market integrity regulations, identifying and escalating regulatory red-flag issues to the appropriate person in a firm, and professional conduct and ethical standards. There are no prerequisites for the Series 99 Exam, but all candidates must be sponsored by a FINRA member firm. Created by the experts at The Securities Institute of America, Inc., Wiley Series 99 Exam Review 2013 arms you with everything you need to pass this challenging 100-question test. Designed tohelp you build and fine-tune your knowledge of all areas covered in the exam and to guarantee thatyou'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 99 Exam Review 2013 is your ticket to passing the Series 99 test on the first try--with flying colors! Visit www.wileysecuritieslicensing.com for more information. The Securities Institute of America, Inc. helps thousands of securities and insurance professionals build successful careers in the financial services industry every year. Our securities training options include: Onsite classes Private tutoring Classroom training Interactive online video training classes State-of-the-art exam preparation software Printed textbooks Real-time tracking and reporting for managers and training directors As a result, you can choose a securities training solution that matches your skill level, learning style, and schedule. Regardless of the format you choose, you can be sure that our securities training courses are relevant, tested, and designed to help you succeed. It is the experience of our instructors and the quality of our materials that make our courses requested by name at some of the largest financial services firms in the world. To contact The Securities Institute of America, visit us on the web at www.SecuritiesCE.com or call 877-218-1776.

Table of Contents:
ABOUT THE SERIES 99 EXAM XIII ABOUT THIS BOOK XVII ABOUT THE TEST BANK XIX ABOUT THE SECURITIES INSTITUTE OF AMERICA XXI CHAPTER 1 EQUITY AND DEBT SECURITIES 1 What Is a Security? 1 Capitalization 2 Common Stock 3 Preferred Stock 9 Types of Dividends 12 Rights 13 Warrants 14 Options 15 American Depositary Receipts (ADRs)/American Depositary Shares (ADSs) 20 Debt Securities/Bonds 20 The Money Market 35 Limited Partnerships 37 Pretest 45 CHAPTER 2 BROKERAGE OFFICE PROCEDURES AND BACK-OFFICE OPERATIONS 49 Hiring New Employees 49 Resignation of a Registered Representative 50 Registration Exemptions 51 Persons Ineligible to Register 51 Disciplinary Actions Against a Registered Representative 52 Termination for Cause 53 Outside Employment 53 Private Securities Transactions 53 Gift Rule 54 Sharing in a Customer's Account 55 Borrowing and Lending Money 55 Order Tickets 55 Executing an Order 56 Becoming a Stockholder 57 Clearly Erroneous Reports 59 Execution Errors 59 Unconfirmed Trades 60 Corporate and Municipal Securities Settlement Options 61 When-Issued Securities 62 Government Securities Settlement Options 62 Accrued Interest 63 Close Outs 64 Customer Confirmations 64 Rules for Good Delivery 66 Rejection of Delivery 67 Reclamation 67 Marking to the Market 67 Customer Account Statements 68 Dividend Distribution 68 Proxies 71 Operations Professionals Covered Persons 71 Pretest 73 CHAPTER 3 RECORD KEEPING, FINANCIAL REQUIREMENTS, AND CLEARING 77 Blotters 77 General Ledger 78 Customer Accounts 78 Suspense Account 78 Subsidiary (Secondary) Records 78 Securities Position Book (Ledger) Stock Record 79 Order Tickets 79 Confirmations and Notices 79 Monthly Trial Balances and Net Capital Computations 79 Employment Applications 79 Records Required to Be Maintained for Three Years 80 Records Required to Be Maintained for Six Years 80 Records Required to Be Maintained for the Life of the Firm 81 Requirement to Prepare and Maintain Records Under SEC 17 a-3 and 17a-4 82 Financial Requirements 83 Box Counts 85 Missing and Lost Securities 86 The Customer Protection Rule 87 FINRA Financial Requirements 90 Fidelity Bonds 91 Carrying of Customer Accounts 91 The Depository Trust & Clearing Corporation (DTCC) 92 The Fixed Income Clearing Corporation (FICC) 94 The Option Clearing Corporation (OCC) 94 American vs. European Exercise 95 Expiration and Exercise 95 Pretest 97 CHAPTER 4 ISSUING CORPORATE SECURITIES 101 The Prospectus 102 The Final Prospectus 102 Prospectus to Be Provided to Aftermarket Purchasers 103 SEC Disclaimer 104 Misrepresentations 104 Tombstone Ads 104 Free Riding and Withholding/FINRA Rule 5130 105 Underwriting Corporate Securities 106 Exempt Securities 108 Exempt Transactions 109 Rule 137 Nonparticipants 115 Rule 138 Nonequivalent Securities 115 Rule 139 Issuing Research Reports 116 Rule 415 Shelf Registration 116 Pretest 117 CHAPTER 5 TRADING SECURITIES 121 Types of Orders 121 The Exchanges 125 The Role of the Specialist/DMM 126 Crossing Stock 128 Do Not Reduce (DNR) 129 Adjustments for Stock Splits 129 Super Display Book (SDBK) 130 Short Sales 130 Threshold Securities 134 Over the Counter/Nasdaq 135 Electronic Communication Networks (ECNs) 138 Non-Nasdaq OTC Bulletin Board 138 Pink Sheets 139 Third Market 140 Fourth Market 140 The Order Audit Trail System (OATS) 140 Broker vs. Dealer 141 FINRA's 5% Markup Policy 142 Markups/Markdowns When Acting as a Principal 142 Riskless Principal Transactions 143 Net Transactions with Customers 144 Proceeds Transactions 144 Firm Quote Rule 144 Trade Complaints Between Members 145 Pretest 147 CHAPTER 6 GENERAL SUPERVISION 151 The Role of the Principal 151 Continuing Education 153 Information Obtained from an Issuer 154 Customer Complaints 155 Investor Information 155 Member Offices 156 Annual Compliance Review 157 Business Continuity Plan 157 Currency Transactions 157 The Patriot Act 158 Pretest 161 CHAPTER 7 CUSTOMER ACCOUNTS 165 Opening a New Customer Account 165 Holding Securities 167 The Depository Trust Company (DTC) 168 Mailing Instructions 168 Types of Ownership 169 Death of a Customer 170 Partnership Accounts 170 Trusts 171 Corporate Accounts 171 Trading Authorization 171 Accounts for Employees of Other Broker Dealers 176 Numbered Accounts 176 Prime Brokerage Accounts 176 Account Transfers 177 Bulk Account Transfers 178 Margin Accounts 179 Guaranteeing a Customer's Account 180 Day Trading Accounts 181 Commingling Customer's Pledged Securities 181 Wrap Account 181 Regulation S-P 182 Pretest 183 CHAPTER 8 MARGIN ACCOUNTS 187 Regulation of Credit 187 House Rules 190 Establishing a Long Position in a Margin Account 190 Establishing a Short Position in a Margin Account 196 Margin Requirements for Day Trading 200 Combined Margin Accounts 201 Portfolio Margin Accounts 202 Pretest 203 CHAPTER 9 INVESTMENT COMPANIES 207 Investment Company Philosophy 207 Types of Investment Companies 208 Investment Company Registration 210 Investment Company Components 212 Mutual Fund Distribution 215 Distribution of Mutual Fund Shares 216 Mutual Fund Prospectus 216 Additional Disclosures by a Mutual Fund 218 Anti-Reciprocal Rule 218 Money Market Funds 218 Valuing Mutual Fund Shares 219 Mutual Fund Sales Charges 219 Sales Charge Reductions 221 Voting Rights 225 Portfolio Turnover 226 Exchange Traded Funds / ETFs 226 Exchange Traded Notes / ETNs 226 Pretest 227 CHAPTER 10 VARIABLE ANNUITIES AND RETIREMENT PLANS 231 Annuities 231 Retirement Plans 239 Pretest 251 CHAPTER 11 SECURITIES INDUSTRY RULES AND REGULATIONS 255 The Securities Exchange Act of 1934 255 Becoming a Member of FINRA 259 Registration of Agents/Associated Persons 260 State Registration 261 Retail Communications/Communications with the Public 261 Securities Investor Protection Corporation Act of 1970 266 The Securities Acts Amendments of 1975 267 The Insider Trading and Securities Fraud Enforcement Act of 1988 268 Firewalls 268 The Telephone Consumer Protection Act of 1991 269 The Penny Stock Cold Call Rule 269 Violations and Complaints 270 Political Contributions 274 Investment Adviser Registration 275 Investment Adviser Representatives 277 Investment Adviser Advertising and Sales Literature 278 Soft Dollars 279 The Uniform Securities Act 281 Pretest 283 ANSWER KEYS 287 GLOSSARY OF EXAM TERMS 295 INDEX 361