Exam Alert: FINRA investigations require encrypted information

As of December 29, 2010, when providing information for a FINRA investigation via a portable media device, the information must be encrypted. This includes Continue reading

As of December 29, 2010, when providing information for a FINRA investigation via a portable media device, the information must be encrypted.  This includes information on flash drives, CDs, laptop computers, and other digital storage devices.  The encryption must meet industry standards for strong encryption and the encryption key must be provided to FINRA staff in a communication (email, fax, or letter) separate from the information. Relevant to: Series 6, Series 24, Series 26, Series 79, Series 62.

Solomon Exam Prep Publishes Free FINRA Series 79 Lite iPhone App

Do you need to take the FINRA Series 79 exam? Do you have limited time to study? If you answered “yes” to both of these questions, then you’ve come to the right place! Continue reading

Do you need to take the FINRA Series 79 exam? Do you have limited time to study? If you answered “yes” to both of these questions, then you’ve come to the right place!

Officially known as the “Investment Banking Limited Representative Exam” the Series 79 exam qualifies candidates to advise on and facilitate debt and equity offerings and mergers and acquisitions. The examination tests candidates’ knowledge of topics necessary for investment banking.

The Series 79 exam was developed and is administered by the Financial Industry Regulatory Authority (FINRA). The Solomon Exam Prep Series 79 iPhone app offers 20 practice questions from the same topic categories and in the same proportion as the actual Series 79 exam. Each question is followed by an immediate answer and explanation, as well as an opportunity to review the question. Users may pause at any time and resume at the same point later on

Series 7 Crossword Puzzle Contest

We know how much you love reading our Pass the 7 book but take a break and try your hand at our Series 7 crossword puzzle! You might even win Continue reading

We know how much you love reading our Pass the 7 book but take a break and try your hand at our Series 7 crossword puzzle! You might even win a Starbucks® gift card.

All you have to do is download the crossword puzzle here, fill it out, and send it to us. If all of your answers are correct, you’ll be entered into a drawing for a Starbucks® gift card!

Mail your completed Series 7 crossword puzzle to:
6750 SW Franklin St.
Portland, OR 97223
Att: Solomon Exam Prep Crossword Contest

Or email your answers to info@solomonexamprep.com.

All entries must be received by Oct. 1, 2010.

Good luck!

Solomon Exam Prep Creates Guide to Series 79 Investment Banking Exam

Solomon Exam Prep has published a 30,000 word guide to the concepts, terms and formulas in the Series 79. Available immediately to users of the Continue reading

Solomon Exam Prep has created a guide to the concepts, terms and formulas in the Series 79. Available immediately to users of the Solomon Exam Prep Series 79 Exam Simulator, the 30,000 word guide covers major concepts, terms and formulas covered in the FINRA Limited Investment Banking Representative Exam. For more information go to SolomonExamPrep.Com or email Jeremy@SolomonExamPrep.Com.

Solomon Exam Prep boosts Series 79 Investment Banking Exam Simulator

For many, the hardest part of the FINRA Series 79 Investment Banking Exam relates to material covered in section one of the FINRA exam outline Continue reading

For many, the hardest part of the FINRA Series 79 Investment Banking Exam relates to material covered in section one of the FINRA exam outline: Collection, Analysis and Evaluation of Data. “Not only is this first section particularly challenging,” says Solomon Exam Prep President Jeremy Solomon, “it contains 75 questions or 43% of the 175-question exam. To pass the Series 79 exam, it’s imperative that the test-taker understand this subject matter.” To help customers gain a better understanding of this material, Solomon Exam Prep has added new valuation and transaction analysis questions to its Series 79 online exam simulator. These questions are based on original financials that the exam simulator customer must read and interpret, like the actual Series 79 investment banking exam.

Solomon Exam Prep publishes FINRA Series 26 Practice Exams with Bonus Questions

If you have to take the FINRA Investment Company Products/Variable Contracts Limited Principal Exam, taking practice tests is one of the best ways to study. Continue reading

If you have to take the FINRA Investment Company Products/Variable Contracts Limited Principal Exam, taking practice tests is one of the best ways to study. Solomon Exam Prep has created 420 high quality practice questions that test the five subject areas for the FINRA Series 26 exam and offer detailed rationales so students can learn from their mistakes.

Priced at $29.95, the Solomon Exam Prep Series 26 product is a terrific deal. “On a per question basis, the Solomon Exam Prep Series 26 practice test product is less than half the price of most the competition,” says President, Jeremy Solomon. “We’re committed to helping our customers pass their FINRA and NASAA exams quickly and affordably.”

Three sample questions:

First State Bank serves as trustee of the Milton Family Trust. As trustee, First State Bank has received information as to ownership of securities and would like to use this information to solicit purchases. Based on FINRA Rule 2060, which of the following is most accurate regarding First State Bank’s ability to use this information?

A. Because First State Bank serves as trustee, they are entitled to use this information to solicit purchases, sales or exchanges

B. Because First State Bank serves as trustee, they are never permitted to use this information to solicit purchases, sales or exchanges

C. Because First State Bank serves as trustee, they are not permitted to use this information to solicit purchases, sales or exchanges except at the request and on behalf of the issuer

D. Because a financial institution is the trustee, First State Bank does not serve a fiduciary role and may use this information to solicit purchases, sales or exchanges

Correct Answer: C

Why: FINRA Rule 2060 states that information obtained through a fiduciary capacity may not be used to solicit purchases, sales or exchanges except at the request and on behalf of the issuer. As trustee, First State Bank is considered a fiduciary and such rule is applicable. Other fiduciary roles this rule applies to include paying agent, transfer agent, and others who operate in a similar fiduciary capacity.

All of the following statements regarding an investment company are considered misleading except which of the following?

A. XYZ company has outperformed the S&P Index for the past 10 years

B. XYZ has the most effective and experienced management company in the state

C. On average, XYZ clients experience a 5% greater return than the average return for clients at ABC company

D. XYZ is the oldest investment company in the state

Correct Answer: D

Why: If accurate, stating that XYZ is the oldest investment company in the state is not a misleading statement regarding the characteristics of the investment company. All of the other statements are considered misleading because they either exaggerate claims about management skills, or give performance data which is not properly warranted or explained.

You have a brokerage account with a broker-dealer fully insured by SIPC containing securities worth $375,000 and $150,000 in cash. The broker-dealer suddenly seeks bankruptcy protection. How big of a check do you receive from the SIPC?

A. $450,000

B. $475,000

C. $500,000

D. $525,000

Correct Answer: B

Why: Your account holdings are insured up to a maximum of $500,000, of which no more than $100,000 can be in cash. You would receive $375,000 for your securities and $100,000 for the cash in your account, and would then be a general creditor of the firm for the remaining $50,000.

To order, go to: Solomon Exam Prep

For more information about the Series 26 exam, see the FINRA exam outline

Big Changes Ahead for the Series 7 Exam

At the FINRA annual conference in May in Baltimore, FINRA announced that it is in what sounds like the final stages of a substantial revision to the Series 7 Continue reading

At the FINRA annual conference in May in Baltimore, FINRA announced that it is in what sounds like the final stages of a substantial revision to the Series 7 General Securities Representative Exam. The new Series 7 exam will test five major job functions, down from the current seven. Within the five major job functions, the revised Series 7 exam will test 29 tasks associated with the major job functions of a registered representative. According to the FINRA, the new Series 7 exam will contain “200+ knowledge statements” associated with the five functions and the 29 tasks.

The five job functions of the new Series 7 General Securities Representative Exam will be:

“Seeks business for the broker-dealer through customers and potential customers”

“Evaluates customers’ financial status, financial needs and risk tolerance, and helps them identify their investment objectives”

“Opens accounts, transfers assets and maintains appropriate account records”

“Provides customers with information on investments and makes suitable recommendations”

“Obtains and verifies customer’s purchase and sales instructions, enters orders and follows up”

These five functions are the same or substantially similar to ones on the current Series 7 exam. A notable change from the existing Series 7 exam is the addition of evaluating customer “risk tolerance.”

Removed or merged into other categories are:

“Explains the organization, participants, and functions of various securities markets and the principal factors that affect them”

“Monitors the customer’s portfolio and makes recommendations consistent with changes in economic and financial conditions as well as the customer’s needs and objectives”

The revised Series 7 will still be 250 questions long with an additional ten non-scored “pre-test” questions that will be randomly distributed on the exam. The revised Series 7 exam will remain six hours in length, broken into two three-hour segments.

Although no specific timeline was provided, the FINRA announcement said that the new Series 7 content outline would be submitted to the SEC first and then once the SEC approves the proposed changes, the new content outline would be posted on the FINRA web site and then some time after that the test would be launched at the testing centers.

Meet us in Baltimore at the FINRA Annual Conference

Solomon Exam Prep will be an exhibitor at the FINRA Annual Conference May 26-28 in Baltimore at the Baltimore Marriott Waterfront Hotel. Continue reading

Solomon Exam Prep will be an exhibitor at the FINRA Annual Conference May 26-28 in Baltimore at the Baltimore Marriott Waterfront Hotel.

For more information, please go to finra.org

Solomon Exam Prep Publishes first Series 79 Exam Simulator

According to FINRA and the SEC, after May 3, anyone performing the duties of an investment banker will need to pass the new Investment Banking Representative Qualification Examination, aka the Series 79. Continue reading

According to FINRA and the SEC, after May 3, anyone performing the duties of an investment banker will need to pass the new Investment Banking Representative Qualification Examination, aka the Series 79.

This is not an easy exam, as many have discovered, and so Solomon Exam Prep has created a high quality online exam simulator with over 750 questions and detailed rationales.

If you have to sit for the Series 79 and bone up on private placements, transaction structures, bidding procedures, Chinese Wall policies and procedures and fairness opinions, there is no better way than to use Solomon Exam Prep’s online Exam Simulator.

What is a passing score for the FINRA Series 79 exam?

This month, we’ve talked with several individuals who have taken the Series 79 Limited Representative Investment Banking exam. They reported that a passing Continue reading

This month, we’ve talked with several individuals who have taken the Series 79 Limited Representative Invesment Banking exam. They reported that a passing score was either a 72 or a 73. FINRA is grading the exam on a “floating curve.” These individuals, experienced investment bankers and M&A professionals, also reported that the exam was challenging, detailed and surprisingly mathematical.