Private Quiz For Annie Covering Chap 1 To Chap 5.

249 Questions | Total Attempts: 67

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Annie Quizzes & Trivia

Oliver Warbucks was a billionaire businessman who opened his heart to Annie and becomes her adoptive father. Do you believe you have the qualities to become a billionaire with what you know on business so far? Take the quiz and know if you can be a real life Oliver Warbucks.


Questions and Answers
  • 1. 
    Prior employer permission would be required for a registered representative to give public: Speeches Seminars Lectures
    • A. 

      Arbitration

    • B. 

      The SEC

    • C. 

      The MSRB

    • D. 

      FINRA

  • 2. 
    Which of the following employees of a broker-dealer must provide written notification to his or her employer in order to open a securities account at another firm? A registered representative A principal A secretary A janitor
    • A. 

      I only

    • B. 

      I and II only

    • C. 

      II and III only

    • D. 

      I, II, and III

  • 3. 
    A registered representative wants to take on a second job working part-time as a waiter in a restaurant. This is allowed as long as the individual notifies:
    • A. 

      I and II only

    • B. 

      III and IV only

    • C. 

      I, II, and III only

    • D. 

      I, II, III, and IV

  • 4. 
    Arbitration decisions are:
    • A. 

      The MSRB

    • B. 

      The FRB

    • C. 

      FINRA

    • D. 

      His employer

  • 5. 
    To apply for a securities license, a previously unregistered individual must: Complete Form U5 Complete Form U4 File the necessary form with FINRA File the necessary form with the SEC
    • A. 

      Appealable

    • B. 

      Not binding if either party contests the decision

    • C. 

      Binding upon all parties to the arbitration

    • D. 

      Not binding if both parties agree not to accept the decision

  • 6. 
    A registered representative is accused of violating an SRO rule. The complaint is heard by a Hearing Panel of FINRA. All of the following are possible outcomes EXCEPT:
    • A. 

      I and III only

    • B. 

      I and IV only

    • C. 

      II and III only

    • D. 

      II and IV only

  • 7. 
    The primary purpose of a self-regulatory organization (SRO) is to:
    • A. 

      The registered representative is fined

    • B. 

      The registered representative is sentenced to two years in prison

    • C. 

      The registered representative settles the complaint agreeing to a censure

    • D. 

      The registered representative is suspended from associating with a member firm for 90 days and appeals the decision

  • 8. 
    Exclusions from the definition of an investment adviser are given to which of the following?
    • A. 

      Press civil charges in regard to violations of securities law

    • B. 

      Press criminal charges in regard to violations of securities law

    • C. 

      Promote fair and equitable trading practices

    • D. 

      Insure the solvency of broker-dealers and other market participants

  • 9. 
    Concerning arbitration, all of the following are TRUE EXCEPT:
    • A. 

      Accountants and lawyers who provide advice in a manner incidental to their profession

    • B. 

      Publishers

    • C. 

      Broker-dealers and their representatives

    • D. 

      All of the above

  • 10. 
    Which of the following are TRUE regarding the Code of Arbitration? Disputes between members must be submitted to arbitration. Arbitration decisions are binding and may not be appealed. A client cannot be forced to submit to arbitration. Arbitration is more cost-effective than litigating the matter in court.
    • A. 

      Disputes between members must go to arbitration

    • B. 

      Decisions may be appealed to FINRA

    • C. 

      Decisions are binding

    • D. 

      A customer having a dispute with a broker-dealer may use the arbitration procedure

  • 11. 
    Which of the following statements is true regarding a registered rep who has not completed the regulatory element training within 120 days of his registration anniversary?
    • A. 

      I and II only

    • B. 

      II and III only

    • C. 

      I, III, and IV only

    • D. 

      I, II, III, and IV

  • 12. 
    Lazlo Toth, a registered representative with UAI Broker-Dealer, has a dispute with his firm over compensation. This dispute will be resolved by:
    • A. 

      The rep will be placed in inactive status.

    • B. 

      The broker-dealer must request an extension from an SRO.

    • C. 

      The rep will be suspended.

    • D. 

      The rep has 30 days to complete the requirement.

  • 13. 
    An employee of a member firm opens an option account with another member firm. Which of the following statements are true? The employee needs written permission from his employer prior to opening the account. Duplicate confirmations must be sent to his employer. The employee needs permission from his employer each time a trade is executed.
    • A. 

      A federal court

    • B. 

      The SEC

    • C. 

      The National Adjudicatory Council

    • D. 

      An arbitration panel

  • 14. 
    Which of the following outside business activities would RRs NOT have to report to their employing broker-dealer?
    • A. 

      I and II only

    • B. 

      I and III only

    • C. 

      II and III only

    • D. 

      I, II, and III

  • 15. 
    Persons who meet the definition of an investment adviser but are exempt from the registration requirements of the Investment Advisers Act of 1940 are:
    • A. 

      Part-time employment as a bartender

    • B. 

      Participation as a silent partner in a relative's business

    • C. 

      Acting as the manager of a sporting goods store on the weekends

    • D. 

      Operating an Internet business from home as a sole proprietor

  • 16. 
    A customer contends that his registered representative made unauthorized trades in his account, and will take this matter to an arbitration panel. Regarding the makeup of this panel, which of the following statements is TRUE?
    • A. 

      Subject to the antifraud provisions of the Act

    • B. 

      Only subject to the antifraud provisions of the Act if they maintain custody of client funds and securities

    • C. 

      Only subject to the antifraud provisions of the Act if they do not meet certain experience and financial requirements

    • D. 

      Not subject to the antifraud provisions of the Act

  • 17. 
    A registered representative who wishes to have outside employment must notify and receive permission from the:
    • A. 

      A majority of the arbitration panel must come from outside the securities industry.

    • B. 

      A majority of the arbitration panel will come from within the securities industry.

    • C. 

      All arbitrators must come from inside the securities industry or must be attorneys.

    • D. 

      All arbitrators must come from outside the securities industry.

  • 18. 
    To whom may a registered representative appeal a finding by a Hearing Panel?
    • A. 

      FINRA

    • B. 

      SEC

    • C. 

      MSRB

    • D. 

      Representative's firm

  • 19. 
    Which of the following best describes a wrap account?
    • A. 

      The National Adjudicatory Council

    • B. 

      The SEC

    • C. 

      A federal appeals court

    • D. 

      There is no appeal allowed

  • 20. 
    When is the regulatory element of continuing education required to be completed by a registered rep? On the second anniversary of initial registration On the third anniversary of initial registration Every two years thereafter Every three years thereafter
    • A. 

      A personal, joint, and IRA account with one account number

    • B. 

      A managed account in which advisory and transaction charges are included in one comprehensive fee

    • C. 

      A consolidated account in which the investor can buy or sell options, equities, or bonds

    • D. 

      An investment club account with no more than 99 investors

  • 21. 
    Self-regulatory organizations generally have rules that: Mandate commission schedules that brokerage firms must charge Are designed to maintain a fair and orderly market Mandate all brokerage firms stand ready to buy or sell securities from their own account to maintain liquidity Require brokerage firms use reasonable diligence to provide customers with best execution
    • A. 

      I and III

    • B. 

      I and IV

    • C. 

      II and III

    • D. 

      II and IV

  • 22. 
    Which of the following would NOT require additional documentation to transfer stock?
    • A. 

      I and II only

    • B. 

      I and III only

    • C. 

      II and III only

    • D. 

      II and IV only

  • 23. 
    Relative to a custodian account, which of the following are TRUE? The minor is responsible for tax consequences. The custodian is responsible for tax consequences. Income generated in the account is taxed as it is received. Income generated in the account is taxed when the minor becomes an adult.
    • A. 

      Partnership account signed by a general partner

    • B. 

      Corporate account signed by an authorized officer

    • C. 

      Custodial account signed by the custodian

    • D. 

      Executor signing for an estate

  • 24. 
    When a gift of securities is purchased for a minor in a custodian account, the gift becomes the property of the minor:
    • A. 

      I and III

    • B. 

      I and IV

    • C. 

      II and III

    • D. 

      II and IV

  • 25. 
    A registered rep holding limited discretionary authority over a customer's account may:
    • A. 

      When the custodian releases the account

    • B. 

      When the donor approves the transaction

    • C. 

      When the minor reaches the age of majority

    • D. 

      At the time of the execution of the order