Across
- 1. A final prospectus is also known as a _______ prospectus
- 5. A _________ advertisement only has minimal information, such as the name of the issuer and type of security.
- 10. If the value of the securities in a margin account declines significantly, the customer may be subject to a ________
- 11. _______ laws require registration of securities, broker-dealers and registered representative at the state level
- 16. ________ bid underwriting arrangements is the standard for new issue offerings in the municipal securities market
- 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
- 19. A __________ is a formal arrangement by two or more parties to manage and operate a business and share its profits
- 22. ________ underwriting contracts are used most in corporate issues
- 27. Prime brokerage accounts are generally offered to a broker-dealer’s more _____ trading clients, such as a hedge fund
- 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
- 29. Networking disclosures are not required in messages contained in radio broadcasts of ______ seconds or less
- 32. This offers two tier for small and medium sized companies’ exemption from the registration statement and prospectus requirements
- 34. During the ______ period, a registered representative may gather indications of interest
- 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
- 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.
- 40. The SEC does not require registration of an offering if it is privately place with accredited investors under this regulation
- 42. Rule ______ concerns generic advertising
- 44. Duties of ________ include raising capital for issuers by distributing new securities and helping issuers comply with securities laws
- 45. U.S. government, U.S. municipalities, and nonprofit religious organizations are some of the issuers that are ______ from SEC registration
- 46. A sole proprietorship account is treated like a(n) ________ account
- 47. ________ accounts charge a single fee instead of commission based charges
- 49. In a best efforts underwriting commitment, the underwriter collects customer money into an _____ account
- 51. An _______ is any person who has access to nonpublic information about a company
- 53. In this type of account, the parties involved may have unequal interest
- 54. Some investors will receive a ______ if they would like more information that is not found in the mutual fund prospectus.
- 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
- 58. To qualify under Rule 147 exemptions, only ____ of the thee 80% tests must be met
- 59. In a prime brokerage account, the firms that handles all trades placed by the customer are called the _______ brokers
- 62. In a _________ brokerage account, the customer selects one member firm to provide custody while other firms handle all trades
- 63. A prospectus is prepared by an ____________
- 66. Customers that open prime brokerage account are generally _____________
- 69. Firms must have established _______ to maintain, review, and supervise communications transmitted via electronic communications
- 70. In a(n) _________ account, Registered Investment Advisers provide investment advice to their clients for a fee
- 76. Overly ______ explanations or material disclosures buried in footnotes are likely to confuse the reader
- 80. The loan in a margin account is ________ by the securities purchased and cash
- 82. A(n) __________ advertisement can never mention the name of a specific security being advertised.
- 83. With ________-specific suitability, the registered representative must ensure that a product is a good fit for a specific client
- 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
- 86. Recruitment advertisements is the only form of communication with the public that is not required to include the ____ of the member firm.
- 87. The preliminary prospectus, also known as a ____________, is used to gauge investor reactions and gather indications of interest for corporate securities.
- 88. The firm in which a customer would like to transfer their assets to is referred to as the ________ firm
Down
- 2. The “A” under discretionary orders that describes buy or sell
- 3. ________ power of attorney allows someone who is not the owner of the account to enter buy and sell orders only
- 4. information buried in footnotes are likely to confuse the reader and could be construed as ________
- 6. Mutual fund performance predictions are ______ in communications
- 7. A ______ account requires a customer to pay in full for any securities purchased
- 8. Sales presentations of mutual funds should include a statement indicating that past performance is no ________ of future results
- 9. To safeguard against the possibility of churning, a designated supervisor or manager must review all trading activity on discretionary account frequently and __________
- 12. A(n) _______ account has only one beneficial owner who has control of the investments within the account
- 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
- 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) ________
- 15. A _______ prospectus must precede or accompany all sales confirmations
- 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)
- 20. Mutual funds provide a _______ prospectus to investors and may include an application
- 21. In a recruitment advertisement, both the job opportunity and the industry must be represented ______
- 23. After a client passes away, discretionary power ceases and all future decisions in the account are made by the client’s ___________
- 24. The form of state registration where the issuer files with the state, independent of federal registration, and must meet all state requirements
- 25. A sole _______ is the simplest for of business organization and is easy to create and easy to dissolve
- 26. ___________-basis suitability states that the recommendation must be suitable for at least some investors
- 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
- 31. A brokerage firm can sell any of the securities in a customer’s account ________ informing the customer in advance of the sale
- 33. All retail communication is subject to ______ by a principal before use
- 36. Predictions in public communications are a violation of the ________ Rules
- 37. Selling group members are paid a selling ______
- 38. The full and fair disclosure for municipal securities is the ______ statement
- 41. Issuers and underwriters will conduct this type of meeting to ensure that the prospectus is true and accurate
- 43. When transferring an account, the customer signs a _____, which is sent to ACATS by the receiving company
- 48. Rule 147 is regarding _______ offerings
- 50. Accounts with a low level of trading activity may be better off with ________-based charges
- 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
- 55. A radio interview is a public _________
- 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
- 60. Under Regulation D. a maximum of _____ nonaccredited investors can participate
- 61. The firm in which must complete the transfer of an account
- 64. In this type of account, all parties must have equal undivided interests
- 65. A _________ account is a brokerage account in which the broker lends the customer cash to purchase stocks or other financial products
- 67. An official __________ is used to obtain an underwriter for municipal bonds.
- 68. The “A” under discretionary orders that describes the security
- 70. This type of investor is defined as one who has a net worth of greater than $1,000,000
- 71. ______ content is typically posted for the long term and is fixed in nature
- 72. In a mutual fund communication, past performance must be shown for a minimum of 10 years or since _______ of the fund
- 73. If the prospectus has been filed with the SEC and is available through its website, access to the prospectus equals ______ of the prospectus
- 74. In a firm commitment offering, the underwriter is acting as a _______ in the transaction
- 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
- 77. A red herring does not include the final offering ______ or the effective date
- 78. Material that makes no claims for a security but simply states its price is ______ from spot-checking
- 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
- 81. The “A” under discretionary orders that describes the number of shares
- 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
- 84. The best efforts underwriter is acting in an _______ capacity with no financial risk