Series 10 Practice Exam

When the market opens the morning of an IPO effective date, secondary market trading in the issue:

In the course of discussing an IPO, the issuer might divulge sensitive, non-public information to a select group of investors. If this occurs:

Though it is rare in practice, when a member firm believes a registered market maker has backed away from its quote, in such cases, the member firm will contact:

OATS or CATS are systems which attempt to achieve maximum disclosure of trading activity in NMS securities. The frequency of OATS/CATS reports is set at:

Open-end investment management companies are quoted based upon the

Investment banking involves working with an Issuer in facilitating an offering of securities in an effort to raise capital, either equity or debt. Occasionally, the banker cannot agree to engage in firm commitment underwriting, and the underwriting agreement will reflect the ‘lesser’ best efforts contingency commitment being taken by the selling group manager and its member participants.  Which of the following statements is incorrect?

Under normal conditions, a member firm wishing to become a market-maker in a non-NMS stock will:

I.    First have to file Form 15c2-11 with the SEC

II.   Have to wait for a minimum of 3 business days after filing the proper form, before entering quotes on that stock

III.  FINRA prohibits members from taking an inventory position in non-NASDAQ stocks.

When engaging in trades with other member firms where both agree to do the trade on other than a regular way basis, which of the following encompasses the rules handling settlement in such situations?

In the instance that a member firm has received a formal notification from the FINRA Division of Enforcement regarding charges against the firm for one or more violations, the member is required to respond in writing no later than:

When a member firm is notified of a set of charges being alleged against the firm by FINRA under the Code of Procedure, and the firm fails to respond to FINRA within the required time period:

The Act of ’33 contains specific filing requirements for registered offerings as well as certain lesser filing requirements for unregistered Regulation D offerings.

I.    Form D must be filed with the SEC 15 days after the initial sale of the securities.

II.   A final Form D is to be filed no later than 30 days after the conclusion of the offering

III.  A truncated Form S-1 is to be filed identifying the Issuer and the intended dollar amount of the offering

FINRA routinely requests member firms to furnish books and records maintained by the firm in order to conduct its investigation. In a situation in which the firm fails to comply and furnishes no legitimate rationale for its refusal,

Under FINRA’s Taping Rule, once it notifies a member that it has become subject to the rule:

I.    The firm may request an exemption which would need to be promptly filed

II.   The firm has 30 days in which to comply, initiating their taping regime

III.  The firm has the option of trimming its staff to a point below the threshold which has triggered the Taping requirement and has 30 days in which to do so

IV.  The Taping rule only applies to member firms who are also members of the NYSE

According to FINRA regulations, a DPP is most similar to which of the following?

Under the trading protocols of NASDAQ, which B/D in a firm-to-firm transaction will report the trade to the appropriate ticker tape?

From time to time, a member finds it necessary to conduct an investigation into one of the firm’s registered reps. If a particular investigation does not turn up any infractions or violations, it needs to be reported to FINRA in no more than:

The exchanges have implemented the LULD (Limit Up/Limit Down) rules for which of the following circumstances?

In accordance with newly-revised limitations for reporting of movements of cash from one account to another, wire transfers must be reported if they are:

FINRA may do which of the following when investigating a member firm?

With regard to a customer complaint:

A Form 144 is required to be filed with the SEC under which of the following situations?

A customer completed a transaction in their account with your B/D. Later that day, the customer contacts their RR to say they’ve changed their mind about the transaction. Which of the below represents the proper handling of this situation?

When one of your RRs has been working the desk on bank premises and the Rep is terminated, under what circumstances must your firm notify the bank of the termination?

In situations which a private securities transaction by an RR has been approved by firm management, this selling away event requires that

When a firm has one or more OMSJ’s (Offices of Municipal Supervisory Jurisdiction), each such office must have no less than one registered principal possessing a: