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Wiley Series 99 Exam Review 2016 + Test Bank: The Operations Professional Examination(Wiley FINRA)

Wiley Series 99 Exam Review 2016 + Test Bank: The Operations Professional Examination(Wiley FINRA)


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About the Book

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 2016 arms you with everything you need to pass this challenging 100-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 99 Exam Review 2016 is your ticket to passing the Series 99 test on the first try—with flying colors!

Table of Contents:
ABOUT THE SERIES 99 EXAM xiii ABOUT THIS BOOK xvi ABOUT THE TEST BANK xvii ABOUT THE SECURITIES INSTITUTE OF AMERICA xviii 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 21 The Money Market 36 Limited Partnerships 38 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 54 Private Securities Transactions 54 Gift Rule 54 Sharing in a Customer’s Account 55 Borrowing and Lending Money 56 Order Tickets 56 Executing an Order 57 Becoming a Stockholder 58 Clearly Erroneous Reports 60 Execution Errors 60 Unconfi rmed Trades 61 Corporate and Municipal Securities Settlement Options 62 When-Issued Securities 64 Government Securities Settlement Options 64 Accrued Interest 65 Close Outs 66 Customer Confirmations 67 Rules for Good Delivery 68 Rejection of Delivery 70 Reclamation 70 Marking to the Market 70 Customer Account Statements 71 Dividend Distribution 72 Proxies 74 Operations Professionals Covered Persons 75 Operational Red Flags 76 Pretest 77 CHAPTER 3 RECORD KEEPING, FINANCIAL REQUIREMENTS, AND CLEARING 81 Blotters 81 General Ledger 82 Customer Accounts 82 Suspense Account 82 Subsidiary (Secondary) Records 82 Securities Position Book (Ledger) Stock Record 83 Order Tickets 83 Confirmations and Notices 83 Monthly Trial Balances and Net Capital Computations 83 Employment Applications 83 Records Required to Be Maintained for 3 Years 84 Records Required to Be Maintained for 6 Years 84 Records Required to Be Maintained for the Life of the Firm 84 Requirement to Prepare and Maintain Records Under SEC 17a-3 and 17a-4 86 Financial Requirements 87 Box Counts 89 Missing and Lost Securities 90 The Customer Protection Rule 91 FINRA Financial Requirements 94 Fidelity Bonds 95 Carrying of Customer Accounts 96 The Depository Trust & Clearing Corporation (DTCC) 97 The Fixed Income Clearing Corporation (FICC) 98 The Option Clearing Corporation (OCC) 99 American vs. European Exercise 99 Expiration and Exercise 100 Pretest 101 CHAPTER 4 ISSUING CORPORATE SECURITIES 105 The Prospectus 106 The Final Prospectus 106 Prospectus to Be Provided to Aftermarket Purchasers 107 SEC Disclaimer 108 Misrepresentations 108 Tombstone Ads 108 Free Riding and Withholding/FINRA Rule 5130 109 Underwriting Corporate Securities 110 Types of Underwriting Commitments 111 Types of Off erings 113 Exempt Securities 115 Exempt Transactions 115 Rule 137 Nonparticipants 122 Rule 138 Nonequivalent Securities 123 Rule 139 Issuing Research Reports 123 Rule 415 Shelf Registration 124 Securities Off ering Reform Rules 124 Sec Rule 405 125 Additional Communication Rules 126 Pretest 129 CHAPTER 5 TRADING SECURITIES 133 Types of Orders 133 The Exchanges 137 The Role of the Designated Market Maker 138 Crossing Stock 141 Do Not Reduce (DNR) 141 Adjustments for Stock Splits 142 Super Display Book (SDBK) 142 Short Sales 143 Threshold Securities 146 Over the Counter/Nasdaq 147 Electronic Communication Networks (ECNs) 150 Non-Nasdaq OTC Bulletin Board 151 Pink OTC Market 151 Third Market 152 Fourth Market 152 The Order Audit Trail System (OATS) 153 Broker vs. Dealer 153 FINRA’s 5% Markup Policy 154 Markups/Markdowns When Acting as a Principal 155 Riskless Principal Transactions 155 Net Transactions with Customers 156 Proceeds Transactions 156 Firm Quote Rule 157 Trade Complaints Between Members 157 Pretest 159 CHAPTER 6 GENERAL SUPERVISION 163 The Role of the Principal 163 Continuing Education 165 Information Obtained from an Issuer 167 Customer Complaints 167 Investor Information 168 Member Offices 168 Annual Compliance Review 169 Business Continuity Plan 170 Currency Transactions 170 The Patriot Act 171 Pretest 173 CHAPTER 7 CUSTOMER ACCOUNTS 177 Opening a New Customer Account 177 Holding Securities 179 The Depository Trust Company (DTC) 180 Mailing Instructions 181 Types of Ownership 181 Death of a Customer 182 Partnership Accounts 183 Trusts 183 Corporate Accounts 184 Trading Authorization 184 Accounts for Employees of Other Broker Dealers 189 Numbered Accounts 189 Prime Brokerage Accounts 189 Account Transfers 190 Bulk Account Transfers 191 Margin Accounts 192 Guaranteeing a Customer’s Account 193 Day Trading Accounts 194 Commingling Customer’s Pledged Securities 194 Wrap Account 194 Regulation S-P 195 Pretest 197 CHAPTER 8 MARGIN ACCOUNTS 201 Regulation of Credit 201 House Rules 204 Establishing a Long Position in a Margin Account 204 Establishing a Short Position in a Margin Account 210 Margin Requirements for Day Trading 214 Combined Margin Accounts 215 Portfolio Margin Accounts 216 Securities Backed Lines of Credit 217 Pretest 219 CHAPTER 9 INVESTMENT COMPANIES 223 Investment Company Philosophy 223 Types of Investment Companies 224 Investment Company Registration 226 Investment Company Components 228 Mutual Fund Distribution 231 Distribution of Mutual Fund Shares 232 Mutual Fund Prospectus 232 Additional Disclosures by a Mutual Fund 234 Anti-Reciprocal Rule 234 Money Market Funds 234 Valuing Mutual Fund Shares 235 Mutual Fund Sales Charges 235 Sales Charge Reductions 237 Voting Rights 241 Portfolio Turnover 242 Recommending Mutual Funds 242 Exchange Traded Funds/ETFs 243 Exchange Traded Notes/ETNs 243 ETFs That Track Alternatively Weighted Indexes 243 Alternative Funds 244 Floating Rate Bank Loan Funds 244 Structured Retail Products/SRPs 245 Pretest 247 CHAPTER 10 VARIABLE ANNUITIES AND RETIREMENT PLANS 251 Annuities 251 Recommending Variable Annuities 255 Retirement Plans 260 Pretest 275 CHAPTER 11 SECURITIES INDUSTRY RULES AND REGULATIONS 279 The Securities Exchange Act of 1934 279 Becoming a Member of FINRA 283 Registration of Agents/Associated Persons 284 State Registration 285 Retail Communications/Communications with the Public 285 Securities Investor Protection Corporation Act of 1970 290 The Securities Acts Amendments of 1975 291 The Insider Trading and Securities Fraud Enforcement Act of 1988 292 Firewalls 292 Telemarketing Rules 293 The Penny Stock Cold Call Rule 294 Violations and Complaints 295 Political Contributions 299 Investment Adviser Registration 300 Investment Adviser Representatives 302 Investment Adviser Advertising and Sales Literature 303 Soft Dollars 304 The Uniform Securities Act 306 Pretest 307 ANSWER KEYS 311 GLOSSARY OF EXAM TERMS 319 INDEX 385


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Product Details
  • ISBN-13: 9781119112266
  • Publisher: John Wiley & Sons Inc
  • Publisher Imprint: John Wiley & Sons Inc
  • Edition: Revised edition
  • Language: English
  • Returnable: N
  • Returnable: N
  • Spine Width: 23 mm
  • Weight: 1016 gr
  • ISBN-10: 1119112265
  • Publisher Date: 21 Dec 2015
  • Binding: Paperback
  • Height: 277 mm
  • No of Pages: 420
  • Returnable: N
  • Series Title: Wiley FINRA
  • Sub Title: The Operations Professional Examination
  • Width: 216 mm


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