Chapter 2 Practice Questions
1. If a representative does not satisfy the regulatory element within the 120 days after his second anniversary, which of the following will occur?
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 U4 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 Form U5.
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. The firm must be registered with:
A. FINRA
B. SEC
C. 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 documentation within 30 days and submit to FINRA for review.
C. Grant or deny registration to the broker-dealer within 60 day