Wiley Series 99 Securities Licensing Exam Review 2020 + Test Bank: The Operations Professional Examination

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 2020 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 2020 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 52 Disciplinary Actions Against a Registered Representative 53 Termination for Cause 54 Outside Employment 54 Private Securities Transactions 55 Gift Rule 55 Sharing in a Customer’s Account 56 Borrowing and Lending Money 56 Order Tickets 57 Executing an Order 57 Becoming a Stockholder 59 Clearly Erroneous Reports 60 Execution Errors 61 Unconfirmed Trades 62 Corporate and Municipal Securities Settlement Options 62 When-Issued Securities 64 Government Securities Settlement Options 65 Accrued Interest 65 Close Outs 66 Customer Confirmations 67 Rules for Good Delivery 68 Rejection of Delivery 70 Reclamation 70 Marking to the Market 71 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) 99 The Option Clearing Corporation (OCC) 99 American vs. European Exercise 100 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 Offerings 113 Exempt Securities 115 Exempt Transactions 115 Rule 137 Nonparticipants 123 Rule 138 Nonequivalent Securities 123 Rule 139 Issuing Research Reports 123 Rule 415 Shelf Registration 124 Securities Offering Reform Rules 124 SEC Rule 405 125 Additional Communication Rules 126 Crowdfunding 127 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 Tape Recording Employees 167 Heightened Supervisory Requirements 167 Information Obtained from an Issuer 168 Customer Complaints 168 Investor Information 169 Member Offices 169 Annual Compliance Review 171 Business Continuity Plan 171 Currency Transactions 172 The Patriot Act 172 Identity Theft 174 Pretest 175 Chapter 7 Customer Accounts 179 Opening a New Customer Account 179 Holding Securities 181 Mailing Instructions 183 Types of Ownership 183 Death of a Customer 184 Partnership Accounts 185 Trusts 185 Corporate Accounts 186 Trading Authorization 186 Accounts for Employees of Other Broker Dealers 191 Numbered Accounts 191 Prime Brokerage Accounts 191 Account Transfers 192 Bulk Account Transfers 193 Margin Accounts 194 Guaranteeing a Customer’s Account 196 Day Trading Accounts 196 Commingling Customer’s Pledged Securities 196 Wrap Account 197 Regulation S-P 197 Pretest 201 Chapter 8 Margin Accounts 205 Regulation of Credit 205 House Rules 208 Establishing a Long Position in a Margin Account 208 Establishing a Short Position in a Margin Account 214 Margin Requirements for Day Trading 218 Combined Margin Accounts 219 Portfolio Margin Accounts 220 Securities Backed Lines of Credit 221 Minimum Margin for Leveraged ETFs 221 Pretest 223 Chapter 9 Investment Companies 227 Investment Company Philosophy 227 Types of Investment Companies 228 Investment Company Registration 230 Investment Company Components 232 Mutual Fund Distribution 235 Distribution of Mutual Fund Shares 236 Mutual Fund Prospectus 236 Additional Disclosures by a Mutual Fund 238 Anti-Reciprocal Rule 238 Money Market Funds 239 Valuing Mutual Fund Shares 239 Mutual Fund Sales Charges 239 Sales Charge Reductions 241 Voting Rights 245 Portfolio Turnover 246 Recommending Mutual Funds 246 Exchange Traded Funds/ETFs 247 Exchange Traded Notes/ETNs 247 ETFs That Track Alternatively Weighted Indexes 247 Alternative Funds 248 Floating Rate Bank Loan Funds 248 Structured Retail Products/SRPs 249 Pretest 251 Chapter 10 Variable Annuities and Retirement Plans 255 Annuities 255 Recommending Variable Annuities 259 Retirement Plans 264 ERISA 404C Safe Harbor 278 Department of Labor Fiduciary Rules 278 Health Savings Accounts 279 Pretest 281 Chapter 11 Securities Industry Rules and Regulations 285 The Securities Exchange Act of 1934 285 Becoming a Member of FINRA 289 Registration of Agents/Associated Persons 290 State Registration 291 Retail Communications/Communications with the Public 291 Securities Investor Protection Corporation Act of 1970 296 The Securities Acts Amendments of 1975 297 The Insider Trading and Securities Fraud Enforcement Act of 1988 298 Firewalls 298 Telemarketing Rules 299 The Penny Stock Cold Call Rule 300 Violations and Complaints 301 Political Contributions 305 Investment Adviser Registration 306 Investment Adviser Representatives 308 Investment Adviser Advertising and Sales Literature 309 Soft Dollars 310 The Uniform Securities Act 312 Pretest 313 Answer Keys 317 Glossary of Exam Terms 325 Index 391

About the Author :
The Securities Institute of America, Inc. has an 18 year track record for excellence in securities exam training. Jeffrey Van Blarcom author from The Securities Institute of America, Inc. helps thousands of securities and insurance professionals build successful careers in the financial services industry every year Learn more at : https://securitiesce.com 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.