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Wiley Series 24 Exam Review 2015 + Test Bank: The General Securities Principal Qualification Examination(Wiley FINRA)

Wiley Series 24 Exam Review 2015 + Test Bank: The General Securities Principal Qualification Examination(Wiley FINRA)


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About the Book

The go-to guide to acing the Series 24 Exam! 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 2015 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 2015 is your ticket to passing the Series 24 test on the first try with flying colors!

Table of Contents:
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 3 Persons Ineligible to Register 4 Disciplinary Actions Against a Registered Representative 5 Termination for Cause 5 Outside Employment 6 Private Securities Transactions 6 Gift Rule 6 Sharing in a Customer s Account 7 Borrowing and Lending Money 8 Order Tickets 8 Executing an Order 8 Becoming a Stockholder 10 Violation 11 Clearly Erroneous Reports 11 Execution Errors 11 Corporate and Municipal Securities Settlement Options 12 When-Issued Securities 13 Government Securities Settlement Options 14 Accrued Interest 14 Close Outs 15 Customer Confi rmations 16 Rules for Good Delivery 17 Rejection of Delivery 18 Reclamation 18 Marking to the Market 19 Customer Account Statements 19 Carrying of Customer Accounts 20 Dividend Distribution 20 Pretest 25 CHAPTER 2 RECORD KEEPING, FINANCIAL REQUIREMENTS, AND REPORTING 29 Blotters 29 General Ledger 30 Customer Accounts 30 Subsidiary (Secondary) Records 30 Securities Position Book (Ledger) Stock Record 30 Order Tickets 31 Confi rmations and Notices 31 Monthly Trial Balances and Net Capital Computations 31 Employment Applications 31 Records Required to Be Maintained for Three Years 31 Records Required to Be Maintained for Six Years 32 Records Required to Be Maintained for the Life of the Firm 32 Requirement to Prepare and Maintain Records Under SEC 17a-3 and 17a-4 34 Financial Requirements 34 Aggregate Indebtedness 37 Haircuts 38 Box Counts 39 Missing and Lost Securities 40 The Customer Protection Rule 41 The Early Warning Rule 44 FINRA Financial Requirements 45 Subordinated Loans 46 Temporary Subordination Agreements 47 Calculating Net Capital 47 Fidelity Bonds 48 Pretest 49 CHAPTER 3 ISSUING CORPORATE SECURITIES 55 The Prospectus 56 The Final Prospectus 57 Providing the Prospectus to Aftermarket Purchasers 57 SEC Disclaimer 58 Misrepresentations 58 Tombstone Ads 59 Free Riding and Withholding/FINRA Rule 5130 59 Underwriting Corporate Securities 61 Types of Underwriting Commitments 61 Types of Off erings 63 Awarding the Issue 64 The Underwriting Syndicate 64 Selling Group 64 Underwriter s Compensation 65 Underwriting Spread 66 Factors That Determine the Size of the Underwriting Spread 66 Review of Underwriting Agreements by FINRA 66 Underwriter s Compensation 67 Exempt Securities 68 Exempt Transactions 69 Rule 137 Nonparticipants 75 Rule 138 Nonequivalent Securities 75 Rule 139 Issuing Research Reports 75 Rule 415 Shelf Registration 76 Securities Off ering Reform Rules 77 SEC Rule 405 77 Additional Communication Rules 78 Pretest 81 CHAPTER 4 TRADING SECURITIES 85 Types of Orders 85 The Exchanges 89 Priority of Exchange Orders 90 The Role of the Specialist/DMM 90 Crossing Stock 93 Do Not Reduce (DNR) 93 Adjustments for Stock Splits 94 Stopping Stock 95 Commission House Broker 95 Two-Dollar Broker 95 Registered Traders 96 Super Display Book (SDBK) 96 Short Sales 96 Affirmative Determination 97 Regulation SHO 97 Rule 200 Definitions and Order Marking 98 Rule 203 Security Borrowing and Delivery Requirements 99 Threshold Securities 100 Block Trades 101 Trading Along 101 Circuit Breakers 102 Limit Up Limit Down (LULD) 102 Listing Requirements for the NYSE 103 Reading the Consolidated Tape 104 Exchange Qualifiers 105 Over-the-Counter/Nasdaq 106 Market Centers 118 SEC Regulation NMS 119 SEC Regulation ATS 119 Nasdaq International 120 Non-Nasdaq OTCBB 121 Pink Sheets 121 Third Market 122 Nasdaq Market Center for Listed Securities 122 Fourth Market 123 Nasdaq Listing Standards 123 Market Maker Regulations and Responsibilities 124 Times for Entering a Quote 124 Withdrawing Quotes 126 Handling and Displaying Customer Limit Orders 128 The Order Audit Trail System (OATS) 130 The Manning Rule 130 Automated Confirmation System (ACT)/Trade Reporting Facility (TRF) 131 ACT Trade Scan 132 Nasdaq Trade Reporting Facility (TRF) 132 Step Out Trades 136 Market Making During Syndication 136 Regulation M, Rule 101 137 Penalty Bids 137 Regulation M, Rule 102 138 Regulation M, Rule 103 138 Passive Market Makers Daily Purchase Limit 139 Regulation M, Rule 104 139 Syndicate Short Positions 140 Regulation M, Rule 105 141 Trade Reporting and Compliance Engine (TRACE) 141 Broker vs. Dealer 143 FINRA 5 Percent Markup Policy 144 Markups/Markdowns When Acting as a Principal 144 Riskless Principal Transactions 145 Proceeds Transactions 146 Firm Quote Rule 146 Trade Complaints Between Members 147 Arbitrage 148 Pretest 149 CHAPTER 5 RECOMMENDATIONS TO CUSTOMERS 155 Investment Objectives 156 Capital Asset Pricing Model (CAPM) 158 Risk vs. Reward 158 Alpha 160 Beta 161 Developing the Client Profi le 161 Professional Conduct when Making Recommendations 162 Recommending Mutual Funds 163 Periodic Payment Plans 164 Mutual Fund Current Yield 164 Fair Dealings with Customers 164 Recommendations to an Institutional Customer 168 Short Sales in Connection with Recommendations 169 Issuing Research Reports 169 Regulation FD 172 Pretest 173 CHAPTER 6 GENERAL SUPERVISION 177 The Role of the Principal 177 Supervisor Qualifications and Prerequisites 178 Continuing Education 179 Tape Recording Employees 180 Heightened Supervisory Requirements 181 Information Obtained from an Issuer 182 Customer Complaints 182 Investor Information 183 Member Offices 183 Annual Compliance Review 185 Business Continuity Plan 185 Currency Transactions 185 The Patriot Act 185 U.S. Accounts 187 Foreign Accounts 187 Pretest 189 CHAPTER 7 CUSTOMER ACCOUNTS 193 Holding Securities 195 The Depository Trust Company (DTC) 196 Mailing Instructions 197 Individual Account 197 Joint Account 197 Joint Tenants with Rights of Survivorship (JTWROS) 197 Joint Tenants in Common (JTIC) 198 Transfer on Death (TOD) 198 Death of a Customer 198 Corporate Accounts 199 Trust Accounts 199 Partnership Accounts 200 Trading Authorization 200 Operating a Discretionary Account 200 Managing Discretionary Accounts 201 Third-Party and Fiduciary Accounts 201 Uniform Gifts to Minors Act (UGMA) 203 Accounts for Employees of Other Broker Dealers 205 Numbered Accounts 205 Prime Brokerage Accounts 205 Account Transfer 206 Margin Accounts 207 Guaranteeing a Customer s Account 208 Day Trading Accounts 208 Commingling Customer s Pledged Securities 209 Wrap Accounts 209 Regulation S-P 209 Pretest 211 CHAPTER 8 MARGIN ACCOUNTS 215 Regulation of Credit 215 House Rules 218 Establishing a Long Position in a Margin Account 218 An Increase in the Long Market Value 219 Special Memorandum Account (SMA) Long Margin Account 221 A Decrease in the Long Market Value 222 The Minimum Equity Requirement for Long Margin Accounts 223 Establishing a Short Position in a Margin Account 224 A Decrease in the Short Market Value 225 An Increase in the Short Market Value 226 The Minimum Equity Requirement for Short Margin Accounts 227 Margin Requirements for Day Trading 228 Combined Margin Accounts 229 Portfolio Margin Accounts 230 Pretest 231 CHAPTER 9 INVESTMENT COMPANIES 235 Investment Company Philosophy 235 Types of Investment Companies 236 Open-End vs. Closed-End Funds 237 Exchange-Traded Funds (ETFs) 238 Exchange Traded Notes (ETNs) 238 Diversifi ed vs. Nondiversified 239 Investment Company Registration 240 Registration Requirements 240 Investment Company Components 242 Mutual Fund Distribution 244 Selling Group Member 245 Distribution of No-Load Mutual Fund Shares 245 Distribution of Mutual Fund Shares 245 Mutual Fund Prospectus 245 Additional Disclosures by a Mutual Fund 247 Anti-Reciprocal Rule 247 Money Market Funds 248 Valuing Mutual Fund Shares 248 Changes in the NAV 249 Sales Charges for Open-End Funds 250 Sales Charges for Closed-End Funds 250 Front-End Loads 250 Back-End Loads 251 Other Types of Sales Charges 251 12B-1 Fees 252 Calculating a Mutual Fund s Sales Charge Percentage 253 Finding the Public Off ering Price 253 Sales Charge Reductions 254 Breakpoint Schedule 254 Letter of Intent 255 Breakpoint Sales 255 Rights of Accumulation 255 Automatic Reinvestment of Distributions 256 Combination Privileges 256 Conversion or Exchange Privileges 257 30-Day Emergency Withdrawal 257 Voting Rights 258 Yields 258 Portfolio Turnover 258 Voluntary Accumulation Plans 259 Dollar Cost Averaging 259 Contractual Accumulation Plans 260 Hedge Funds 261 Pretest 263 CHAPTER 10 VARIABLE ANNUITIES AND RETIREMENT PLANS 267 Annuities 267 Annuity Purchase Options 271 Accumulation Units 272 Annuity Units 272 Annuity Payout Options 272 Factors Affecting the Size of the Annuity Payment 274 Taxation 275 Sales Charges 275 Variable Annuity vs. Mutual Fund 275 Retirement Plans 275 Individual Plans 276 Individual Retirement Accounts (IRAs) 276 Keogh Plans (HR-10) 281 Tax-Sheltered Annuities (TSAs) and Tax-Deferred Accounts (TDAs) 282 Corporate Plans 284 Employee Stock Ownership Plans (ESOPs) 286 Profit Sharing Plans 286 401(k)s and Thrift Plans 287 Rolling Over a Pension Plan 287 Employee Retirement Income Security Act of 1974 (ERISA) 287 Pretest 289 CHAPTER 11 SECURITIES INDUSTRY RULES AND REGULATIONS 293 The Securities Exchange Act of 1934 293 The Securities and Exchange Commission (SEC) 294 Extension of Credit 295 Trading Suspensions 295 Issuers Repurchasing Their Own Securities 295 Tender Offers 297 Stockholders Owning 5 Percent of An Issuer s Equity Securities 298 The National Association of Securities Dealers (NASD) 298 Becoming a Member of FINRA 300 Foreign Broker Dealers 302 Registration of Agents/Associated Persons 302 Retiring Representatives/Continuing Commissions 303 State Registration 303 Retail Communications/Communications with the Public 303 FINRA Rule 2210 Communications with the Public 304 Broker Dealer Websites 307 Blind Recruiting Ads 307 Generic Advertising 308 Tombstone Ads 308 Testimonials 309 Free Services 309 Misleading Communications 309 Securities Investor Protection Corporation Act of 1970 309 Customer Coverage 310 The Securities Acts Amendments of 1975 311 The Insider Trading and Securities Fraud Enforcement Act of 1988 311 Firewall 312 The Telephone Consumer Protection Act of 1991 312 The Penny Stock Cold Call Rule 313 Violations and Complaints 314 Resolution of Allegations 314 Minor Rule Violation 314 Electronic Blue Sheets 315 Mediation 316 Code of Arbitration 316 The Arbitration Process 316 Political Contributions 318 Investment Adviser Registration 319 Investment Adviser Representative 319 The National Securities Market Improvement Act of 1996 320 Investment Adviser Registration 321 Investment Adviser Capital Requirements 321 Exams for Investment Advisers 321 Investment Adviser Advertising and Sales Literature 322 Investment Adviser Brochure Delivery 323 Soft Dollars 323 Broker Dealers on the Premises of Other Financial Institutions 324 The Uniform Securities Act 325 Sarbanes-Oxley Act 326 SEC Regulation S-K 327 SEC Regulation M-A 328 The Hart-Scott-Rodino Act 329 FINRA Rule 2290 (Fairness Opinion) 330 SEC Regulation S-X 330 Pretest 333 ANSWER KEYS 339 APPENDIX 349 GLOSSARY OF EXAM TERMS 371 INDEX 437


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Product Details
  • ISBN-13: 9781118856925
  • Publisher: John Wiley & Sons Inc
  • Publisher Imprint: John Wiley & Sons Inc
  • Edition: Revised edition
  • Language: English
  • Returnable: N
  • Returnable: N
  • Spine Width: 26 mm
  • Weight: 1043 gr
  • ISBN-10: 1118856929
  • Publisher Date: 27 Oct 2014
  • Binding: Paperback
  • Height: 278 mm
  • No of Pages: 480
  • Returnable: N
  • Series Title: Wiley FINRA
  • Sub Title: The General Securities Principal Qualification Examination
  • Width: 216 mm


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