Chapter 2 Practice Questions
- 1. What happens if a representative does not satisfy the regulatory element within the 120 days after his second anniversary?
- A. The representative will be terminated.
- B. The representative will not receive compensation for activities that require a securities license.
- C. The representative will need to retake the qualifying exams.
- D. The representative will still be able to engage in securities transactions.
- 2. Due to business cutbacks, Randall is laid off from his back office job with Alliance Investments. Two months later, he lands a similar job with another brokerage. Which of the following actions is Alliance Investments required to take following his termination and reemployment?
- A. File a Form U-2 with FINRA within 30 days of Randall’s termination.
- B. Send Randall a copy of Form U5 within 30 days of his termination.
- C. Send Randall’s new employer a copy of Form U4 within two days of his hiring.
- D. State the reason for Randall’s termination on its Form U4 filing with FINRA.
- 3. A member firm must register each of its associated persons by filing their personal information with FINRA using which of the following documents?
- A. Form BD
- B. Form BR
- C. Form U4
- D. Form NMA
- 4. Burnham & Wood is an investment adviser headquartered in Omaha, Nebraska, with offices in Colorado and Texas. It manages roughly $75 million in assets. In light of its size, this firm must be registered with:
- A. FINRA
- B. SEC
- C. State of Nebraska
- D. Nebraska, Colorado, and Texas
- 5. A broker-dealer requesting registration must fill out an application with the SEC containing all necessary information and documentation. How is the SEC expected to respond?
- A. Grant or deny registration to the broker-dealer within 45 days.
- B. Evaluate completeness of application and accompanying