Series 6 Review 1

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Across
  1. 1. A final prospectus is also known as a _______ prospectus
  2. 5. A _________ advertisement only has minimal information, such as the name of the issuer and type of security.
  3. 10. If the value of the securities in a margin account declines significantly, the customer may be subject to a ________
  4. 11. _______ laws require registration of securities, broker-dealers and registered representative at the state level
  5. 16. ________ bid underwriting arrangements is the standard for new issue offerings in the municipal securities market
  6. 18. The _______ requires that any investment company whose name implies a certain type of security must have at least 80% of its assets invested as implied
  7. 19. A __________ is a formal arrangement by two or more parties to manage and operate a business and share its profits
  8. 22. ________ underwriting contracts are used most in corporate issues
  9. 27. Prime brokerage accounts are generally offered to a broker-dealer’s more _____ trading clients, such as a hedge fund
  10. 28. Any income and any real or personal property acquired by either spouse during a marriage are considered ________ property and thus belong to both partners of the marriage
  11. 29. Networking disclosures are not required in messages contained in radio broadcasts of ______ seconds or less
  12. 32. This offers two tier for small and medium sized companies’ exemption from the registration statement and prospectus requirements
  13. 34. During the ______ period, a registered representative may gather indications of interest
  14. 35. _______ arrangements is an arrangement between a member broker-dealer and a financial institution where the firm must be clearly identified and be physically separate from the routine retail deposit-taking activities of the financial institution
  15. 39. In determining whether a communication is misleading, FINRA calls for consideration of the overall ________ of the communication, where unclear statements can create serious misunderstandings to the point of constituting a rules violation.
  16. 40. The SEC does not require registration of an offering if it is privately place with accredited investors under this regulation
  17. 42. Rule ______ concerns generic advertising
  18. 44. Duties of ________ include raising capital for issuers by distributing new securities and helping issuers comply with securities laws
  19. 45. U.S. government, U.S. municipalities, and nonprofit religious organizations are some of the issuers that are ______ from SEC registration
  20. 46. A sole proprietorship account is treated like a(n) ________ account
  21. 47. ________ accounts charge a single fee instead of commission based charges
  22. 49. In a best efforts underwriting commitment, the underwriter collects customer money into an _____ account
  23. 51. An _______ is any person who has access to nonpublic information about a company
  24. 53. In this type of account, the parties involved may have unequal interest
  25. 54. Some investors will receive a ______ if they would like more information that is not found in the mutual fund prospectus.
  26. 56. This type of underwriting agreement is the most commonly used where the underwriter commits to buying the securities from the issuer and reselling them to the public
  27. 58. To qualify under Rule 147 exemptions, only ____ of the thee 80% tests must be met
  28. 59. In a prime brokerage account, the firms that handles all trades placed by the customer are called the _______ brokers
  29. 62. In a _________ brokerage account, the customer selects one member firm to provide custody while other firms handle all trades
  30. 63. A prospectus is prepared by an ____________
  31. 66. Customers that open prime brokerage account are generally _____________
  32. 69. Firms must have established _______ to maintain, review, and supervise communications transmitted via electronic communications
  33. 70. In a(n) _________ account, Registered Investment Advisers provide investment advice to their clients for a fee
  34. 76. Overly ______ explanations or material disclosures buried in footnotes are likely to confuse the reader
  35. 80. The loan in a margin account is ________ by the securities purchased and cash
  36. 82. A(n) __________ advertisement can never mention the name of a specific security being advertised.
  37. 83. With ________-specific suitability, the registered representative must ensure that a product is a good fit for a specific client
  38. 85. In a ________ arrangement, the underwriter makes a good faith promise to the issuer to sell as much of their securities offering as possible without financial liability for what remains unsold
  39. 86. Recruitment advertisements is the only form of communication with the public that is not required to include the ____ of the member firm.
  40. 87. The preliminary prospectus, also known as a ____________, is used to gauge investor reactions and gather indications of interest for corporate securities.
  41. 88. The firm in which a customer would like to transfer their assets to is referred to as the ________ firm
Down
  1. 2. The “A” under discretionary orders that describes buy or sell
  2. 3. ________ power of attorney allows someone who is not the owner of the account to enter buy and sell orders only
  3. 4. information buried in footnotes are likely to confuse the reader and could be construed as ________
  4. 6. Mutual fund performance predictions are ______ in communications
  5. 7. A ______ account requires a customer to pay in full for any securities purchased
  6. 8. Sales presentations of mutual funds should include a statement indicating that past performance is no ________ of future results
  7. 9. To safeguard against the possibility of churning, a designated supervisor or manager must review all trading activity on discretionary account frequently and __________
  8. 12. A(n) _______ account has only one beneficial owner who has control of the investments within the account
  9. 13. The form of state registration where the issuer registers simultaneously with the state and the SEC and both registrations become effective on the same date
  10. 14. An article on investing published by the Wall Street Journal may be reprinted and used by a member without altering the article is called a(n) ________
  11. 15. A _______ prospectus must precede or accompany all sales confirmations
  12. 17. A __________ account is an investment portfolio that is professionally managed by a brokerage firm for a flat fee that is charged quarterly or annually. The fee is based on total assets under management (AUM)
  13. 20. Mutual funds provide a _______ prospectus to investors and may include an application
  14. 21. In a recruitment advertisement, both the job opportunity and the industry must be represented ______
  15. 23. After a client passes away, discretionary power ceases and all future decisions in the account are made by the client’s ___________
  16. 24. The form of state registration where the issuer files with the state, independent of federal registration, and must meet all state requirements
  17. 25. A sole _______ is the simplest for of business organization and is easy to create and easy to dissolve
  18. 26. ___________-basis suitability states that the recommendation must be suitable for at least some investors
  19. 30. An advantage of a prime brokerage account is that a customer has the ability to trade with multiple brokerage houses while maintaining a ______________ master account
  20. 31. A brokerage firm can sell any of the securities in a customer’s account ________ informing the customer in advance of the sale
  21. 33. All retail communication is subject to ______ by a principal before use
  22. 36. Predictions in public communications are a violation of the ________ Rules
  23. 37. Selling group members are paid a selling ______
  24. 38. The full and fair disclosure for municipal securities is the ______ statement
  25. 41. Issuers and underwriters will conduct this type of meeting to ensure that the prospectus is true and accurate
  26. 43. When transferring an account, the customer signs a _____, which is sent to ACATS by the receiving company
  27. 48. Rule 147 is regarding _______ offerings
  28. 50. Accounts with a low level of trading activity may be better off with ________-based charges
  29. 52. Although issued by a municipality, it is not backed by its taxing authority. In fact, the interest and principal is paid off by a business enterprise
  30. 55. A radio interview is a public _________
  31. 57. Any sales literature that contains performance data for an investment company must include a ______ disclosing that the that the performance data quoted represents past performance
  32. 60. Under Regulation D. a maximum of _____ nonaccredited investors can participate
  33. 61. The firm in which must complete the transfer of an account
  34. 64. In this type of account, all parties must have equal undivided interests
  35. 65. A _________ account is a brokerage account in which the broker lends the customer cash to purchase stocks or other financial products
  36. 67. An official __________ is used to obtain an underwriter for municipal bonds.
  37. 68. The “A” under discretionary orders that describes the security
  38. 70. This type of investor is defined as one who has a net worth of greater than $1,000,000
  39. 71. ______ content is typically posted for the long term and is fixed in nature
  40. 72. In a mutual fund communication, past performance must be shown for a minimum of 10 years or since _______ of the fund
  41. 73. If the prospectus has been filed with the SEC and is available through its website, access to the prospectus equals ______ of the prospectus
  42. 74. In a firm commitment offering, the underwriter is acting as a _______ in the transaction
  43. 75. _______ power of attorney allows someone who is not the owner of the account to deposit or withdraw cash or securities, as well as make investment decisions
  44. 77. A red herring does not include the final offering ______ or the effective date
  45. 78. Material that makes no claims for a security but simply states its price is ______ from spot-checking
  46. 79. FINRA Rule 3210 requires that an associated person obtain the prior ______ consent of their employee when opening an account at another member or other financial institution
  47. 81. The “A” under discretionary orders that describes the number of shares
  48. 83. In determining whether a communication is misleading, FINRA calls for consideration of the overall ________ of the statement, where a statement is misleading in one context may be appropriate in another
  49. 84. The best efforts underwriter is acting in an _______ capacity with no financial risk