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Wiley Series 55 Exam Review 2016 + Test Bank: The Equity Trader Examination(Wiley FINRA)

Wiley Series 55 Exam Review 2016 + Test Bank: The Equity Trader Examination(Wiley FINRA)


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About the Book

The go-to guide to acing the Series 55 Exam! Passing the Equity Trader Qualification Exam (Series 55) qualifies an individual to trade equity and convertible debt securities on a principal or agency basis, after having passed either the Series 62 or Series 7 Exam. Topics covered in the test include NASDAQ and over-the-counter securities, quotation and market maker requirements, regulation of the national market system, trading and market halts, prearranged and third-party trades, anticompetitive trading practices, transactions in accounts, trade reporting requirements, insider trading regulations, and more. Created by the experts at The Securities Institute of America, Inc., Wiley Series 55 Exam Review 2016 arms you with everything you need to pass this challenging 100-question multiple-choice 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 55 Exam Review 2016 is your ticket to passing the Series 55 test on the first try—with flying colors!

Table of Contents:
ABOUT THE SERIES 55 EXAM xi ABOUT THIS BOOK xv ABOUT THE TEST BANK xvii ABOUT THE SECURITIES INSTITUTE OF AMERICA xix CHAPTER 1 ISSUING CORPORATE SECURITIES 1 The Prospectus 2 The Final Prospectus 3 Prospectus to Be Provided to Aftermarket Purchasers 4 SEC Disclaimer 4 Misrepresentations 4 Tombstone Ads 5 Freeriding and Withholding/FINRA Rule 5130 5 Underwriting Corporate Securities 7 Types of Underwriting Commitments 7 Market Out Clause 8 Types of Offerings 8 Awarding the Issue 9 The Underwriting Syndicate 9 Exempt Securities 10 Exempt Transactions 10 Private Investment in a Public Equity (PIPE) 15 Reverse Merger 15 Rule 137 Nonparticipants 17 Rule 138 Nonequivalent Securities 17 Rule 139 Issuing Research Reports 18 Rule 415 Shelf Registration 19 Securities Offering Reform Rules 19 SEC Rule 405 19 Additional Communication Rules 21 Pretest 23 CHAPTER 2 THE SECURITIES MARKETPLACE 27 Types of Orders 27 Volume Weighted Average Price (VWAP) Orders 30 The Exchanges 31 The Role of The Specialist/Designated Market Maker (DMM) 32 Short Sales 36 Reading the Consolidated Tape 41 Pretest 43 CHAPTER 3 TRADING OVER THE COUNTER AND NASDAQ SECURITIES 45 Market Makers 45 Nasdaq Subscription Levels 46 Registering as a Market Maker 47 Registering as a Market Maker in an OTC BB Security 47 Piggybacking a Quote 49 Nasdaq Quotes 50 Locked and Crossed Markets 51 Nominal Nasdaq Quotes 51 Payments for Market Making 51 Nasdaq Execution Systems 52 Order Entry Parameters 55 The Order Routing Process 56 Pegged Orders 57 The Alternative Display Facility (ADF) 57 Trade Reporting and Comparison Service (TRACS) 58 Advanced Computerized Execution System (ACES) 58 Electronic Communication Networks (ECNs) 59 Unlisted Trading Privileges 60 Market Centers 60 Non-Nasdaq OTC BB 63 Pink OTC Market 64 Third Market 64 Nasdaq Market Center For Listed Securities 65 Fourth Market 65 Pretest 67 CHAPTER 4 MARKET MAKER RESPONSIBILITIES AND TRADE REPORTING 71 Times for Entering a Quote 71 Withdrawing Quotes 74 Handling and Displaying Customer Limit Orders 75 Interpositioning 79 Automated Confirmation System (ACT) Market Center Trade Reporting Facility 80 Nasdaq Trade Reporting Facility (TRF) 85 Step Out Trades 86 Trading Halts 86 Market Making During Syndication 88 Syndicate Short Positions 92 Pricing of IPOs 93 Trade Reporting and Compliance Engine (TRACE) 93 Pretest 97 CHAPTER 5 COMMISSIONS AND TRADE COMPLAINTS 101 Broker vs. Dealer 101 FINRA 5% Markup Policy 102 Markups/Markdowns When Acting as a Principal 103 Riskless Principal Transactions 104 Proceeds Transactions 104 Dominated and Controlled Markets 104 Net Transactions with Customers 105 Protection of Customer Orders 106 Firm Quote Rule 106 Trade Complaints between Members 108 The Order Audit Trail System (OATS) 108 Electronic Blue Sheets 109 Pretest 111 CHAPTER 6 SECURITIES INDUSTRY RULES AND REGULATIONS 113 The Securities Exchange Act of 1934 113 The Securities Exchange Commission (SEC) 114 Trading Suspensions 115 Issuers Repurchasing Their Own Securities 115 Tender Offers 116 Large Trader Reporting 118 Risk Management Controls 118 The Insider Trading and Securities Fraud Enforcement Act of 1988 119 Firewall 120 Nasdaq Listing Standards 120 The Penny Stock Cold Call Rule 121 Fair Dealings with Clients 122 The Uniform Practice Code 126 Prime Brokerage Accounts 131 Investment Advisors Act of 1940 132 Brochure Delivery 132 Wrap Accounts 133 Securities Investor Protection Corporation Act of 1970 133 Pretest 135 ANSWER KEYS 139 GLOSSARY OF EXAM TERMS 143 INDEX 209


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Product Details
  • ISBN-13: 9781119112136
  • Publisher: John Wiley & Sons Inc
  • Publisher Imprint: John Wiley & Sons Inc
  • Edition: Revised edition
  • Language: English
  • Returnable: N
  • Returnable: N
  • Spine Width: 15 mm
  • Weight: 567 gr
  • ISBN-10: 1119112133
  • Publisher Date: 21 Dec 2015
  • Binding: Paperback
  • Height: 272 mm
  • No of Pages: 240
  • Returnable: N
  • Series Title: Wiley FINRA
  • Sub Title: The Equity Trader Examination
  • Width: 211 mm


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