Across
- 1. The _____ is the largest equities-based exchange in the world, based on the total market capitalization of its listed securities and will be the model exchange for your exam.
- 4. Three arbitrators must be involved when the proceedings involve _____ than $100,000 (unless both parties agree to one).
- 6. _______ settlement would have a shorter or longer settlement cycle, allowing for a quicker, or delayed, transfer of funds and the asset between the seller and the buyer.
- 9. The National Adjudicatory Council must provide _____ days written notice to a member firm or associated person that has failed to comply with procedures in connection with any investigation, written complaint or examination by FINRA that they have the right to suspend the member.
- 13. _______ is an independent, nongovernmental organization that writes and enforces the rules governing registered brokers and broker-dealer firms in the United States.
- 14. All monetary awards must be paid within 30 days of the ________ date.
- 15. The delivery of educational material applies for three ______ following the date the registered person begins employment or associates with a new member
- 16. When you see the term auction market, think ________.
- 17. If there is no satisfaction received from the NAC after an appeal, the appealing party may take the case to the ____.
- 18. All panelists in COP proceedings are from the _____.
- 23. A _____ firm is one that has been expelled from membership in any SRO or is subject of an SC order revoking its registration as a BD.
- 25. Stocks or bonds sold for _____ settlement must be available on the spot for delivery to the buyer
- 27. Regulation T payment is sometimes referred to as settlement plus ____.
- 28. The NAC has the right to ______ the registration of any associated person if there is noncompliance in connection to investigations or customer complaints.
- 29. ______ execution a legal mandate that requires brokers to provide the most advantageous order execution for their customers given the prevailing market environment.
- 32. The settlement date is the date on which _______ of a security changes between the buyer and the seller.
- 33. When a forward stock split or stock dividend takes place, outstanding orders not yet executed will be _____ in order to maintain the integrity of the order when it was placed
- 34. Within ____ days, panelists from the NAC proceeding must render a written decision.
- 35. An ______ must be made within 25 days of the decision date or the decision is final.
- 36. A _______ is the difference between the highest current bid price among dealers in the market for a security and the lower price that a dealer charges a customer.
- 38. If a buy limit order is on the order book and a stock goes ex-dividend, the order will be reduced by the ________ amount.
- 39. A customer has placed an order to buy 200 shares of XYZ stock at $60. If XYZ declares a 2:1 stock split, the order will be adjusted to buy (more or less) shares of XYZ stock at $30
- 42. If a member firm hires representatives who ere previously associated with a disciplined firm, the hiring member may be required to establish procedures for _________ telemarketing activities of all of its registered persons.
- 47. Recommending any investment that is not suitable for the customer’s financial situation and risk tolerances is a _____________ of fair dealing rules.
- 51. If the seller delivers before the settlement date, the buyer may either accept the security or refuse it without ________.
- 54. The member firms under the tape monitoring procedures must provide FINRA with reports on its telemarketing supervision on a ___________ basis.
- 55. Trade confirmations must be maintained by the firm for ______ years.
- 57. A respondent to a NAC complaint has ____ days after receiving the complaint to file an answer.
- 58. A ________ is an entity such as a non-governmental organization, which has the power to create and enforce stand-alone industry and professional regulations and standards on its own.
- 61. This market is an interdealer market in which unlisted securities trade. Dealers are connected by computer and telephone.
- 62. One advantage of arbitration over court proceeding is that all decisions are _______ (no appeals are allowed).
- 63. This specifies the date customers are required to pay for purchase transactions.
- 64. Exchanges also operate as _______markets, which is when buyers compete with buyers and sellers compete with sellers for the best price).
- 67. Arbitrators are divided into two categories. This category includes any person who worked in the financial industry for any duration during their careers.
- 70. A customer must be given a confirmation of the trade on or before the ________ date.
- 71. A member firm must supply a customer with a copy of the signed predispute arbitration agreement within ____ business days of the request.
- 72. Brokers act like _____ and receive payment for the trade.
- 75. Any person engaged in the business of effecting transactions in the securities for the accounts of others (that is not a bank) is considered a _______.
- 76. Brokers receive a _____ as payment for a trade.
- 77. _____ against a member or associated person are included with the written decision and can include censure, fine, suspension, expulsion, or barring.
- 78. _____ the close or open is when trades are falsely reported to influence the opening or closing price of a stock.
- 80. A ______ is the difference between an investment's lowest current offering price among broker-dealers and the price charged to the customer for said investment.
- 83. An Office of _______ Jurisdiction is a regional location designated by the firm as a compliance hub.
- 84. The Code of Arbitration _______ Code governs arbitrations between or among industry parties only.
- 85. True or False, if the appealing party is turned down by the SEC, there is no right to continue to the federal court system.
- 86. Members, advisers, and representatives are ______ from sharing in any profits or losses in a customer’s account.
- 87. Regular way settlement for __________ securities is T+1.
- 88. Exchange listed securities trade OTC in this market.
Down
- 2. When a trade is completed, an _____ report is filled out.
- 3. When an order specification is changed while awaiting execution on the order book, it is done through a cancel and _____ process.
- 5. The _____ Rules requires loyalty to and fair dealing with customers.
- 7. If, after an investigation, FINRA believes a member and/or its associated persons has violated one or more rules or laws, the Department of ______ will issue a formal complaint.
- 8. The national exchanges list securities of national trading _______.
- 10. Each stock exchange requires companies to meet certain _____ before it will allow their stock to be listed for trading on an exchange.
- 11. A ________ is a document that establishes a trade, it’s settlement date, and the money due or owed to the customer.
- 12. The Uniform _______ Code is a series of rules, interpretations and explanations designed to make uniform, where practicable, custom, practice, usage, and trading technique in the investment banking and securities business, particularly with regards to operational and settlement issues. These can include such matters as trade terms, deliveries, payments, dividends, rights, and interest.
- 13. The ________ market refers to a market where securities trade directly between institutions on a private, over-the-counter (OTC) computer network, rather than over a recognized exchange. They are often traded on this market to increase anonymity or to effect large trades without moving the market.
- 19. The Uniform Practice Code _________ the dates and times for each type of settlement.
- 20. _______ is a system that facilitates the transfer of securities from one trading account to another at a different brokerage firm or bank.
- 21. For tape monitoring purposes, FINRA will require all phone conversations to be recorded and monitored if a firm has 15 employees and 4 or more of those employees are from disciplined firms. Which level would this be considered?
- 22. A dealer includes the role of a brokerage firm when it acts as a ______ in a particular trade and charges the customer a markup or markdown.
- 24. The Code of ______ deals with alleged violations of FINRA rules, MSRB rules and federal securities laws
- 26. Under Regulation T, customer payment is due _____ business days after the trade date.
- 30. True or False: It is acceptable to share in a customer’s profits and losses if a joint account has received the member firm’s prior written approval and the registered rep shares in the profits and losses only to the extent of his proportionate contribution
- 31. ______ is usually associated with those who are short put options. It is the act of entering purchase orders in a stock for the purpose of keeping the price from falling below the strike price.
- 36. In a NAC proceeding, the decision must reflect a _______ vote.
- 37. Any dispute involving a dollar amount of $50,000 or less is eligible for ________ arbitration.
- 38. A firms acts as a ______ when it buys or sells securities for its own account at its own risk.
- 40. Educational _______ outlines things a customer might need to consider when moving assets from one firm to another. This includes financial incentives that could rise to a conflict of interest for the representative, potential costs related to transferring assets and that fact that some assets might not be transferrable.
- 41. Any monetary awards not paid within 30 days will begin to accrue ______ as of the decision date.
- 43. If a cash trade occurs after 2pm, settlement is due within ______ minutes.
- 44. If a firm or an associated person has violated any securities laws, rules, regulations or standards of conduct, it m
- 45. A respondent to an initiation of proceedings of arbitration has ______ calendar days to respond to both the director of arbitration and the claimant.
- 46. _____ the tape is when one party sells stock to another with the understanding that the stock will be repurchased later in the day at virtually the same price to make it appear that there is more activity in a stock than there actually is.
- 48. ____________ refers to the illegal practice of using an unneeded third party, usually another broker-dealer, between the customer and the best available market price, with the sole purpose being to generate extra commissions.
- 49. The ______ is a self-regulatory organization that deals with options.
- 50. No change to an order ticket can be made without the approval of a principal or _______ manager.
- 52. Orders that cannot be immediately executed are placed on the designated market maker’s order ______ book.
- 53. To change an account number on an order ticket, you would need to cancel and _____, which requires manager approval.
- 56. The _____ is a FINRA committee that reviews initial decisions rendered in FINRA disciplinary and membership proceedings.
- 59. A carrying firm has _____ business day to validate or take exception to any transfer instructions received regarding a customer’s account.
- 60. Painting the tape is sometimes referred to as _______ orders.
- 65. for any dispute that involves a public customer , the majority of the arbitration panel must be made up of _______ arbitrators.
- 66. This market is where investors buy and sell securities with each other instead of through the issuer.
- 68. The Code of Arbitration _______ Code governs arbitrations between investors and brokers and/or brokerage firms.
- 69. Registered representative moves to a new firm and attempts to convince their former customers to move with them, they must provide the former customer with _______ communication.
- 73. The _______ s a regulating body which creates rules and policies for investment firms and banks in the issuing and sale of municipal bonds, notes, and other municipal securities.
- 74. ______ is the practice of selling large amounts of a commodity or security close to the expiration date of its options to prevent a rise in the underlying's price.
- 79. The ________ settlement for most securities transactions is T+2.
- 81. An order ticket must contain the identity of the _______ person, if any, responsible for the account.
- 82. The statute of limitations for submission to arbitration is ________ years from the time of the event.