FINRA Series 7
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ABCD is an actively traded security with an inside market of Choose the net price that makes the most sense given what you know about markups, markdowns, and net prices.
On a sell order in an active competitive market, the net price will contain a markdown from the best bid. FINRA has provided additional guidance on its suitability rule. FINRA has also created a webpage that addresses suitability issues. FINRA has provided additional guidance on its suitability rule original guidance covered here.
An explicit recommendation to hold securities would be considered an investment strategy, as would a recommendation to continue an existing investment strategy.
The suitability rule only applies to non-security investments to the extent that the non-security investment is involved with a securities transaction e. The notice also provides comments on broker-dealer supervisory obligations regarding investment strategies that involve both securities and non-security investments.
Relevant to the Series 24, Series 79, and Series Question Relevant to the Series 24Series 79and Series All recommendations on the tender offer made by the targeted company, its affiliates, and certain other parties must be made using SEC Form, Schedule 14D It must also file a Form 13D, which is a beneficial ownership form.
The recommendation can take the form of: It cannot recommend that shareholders buy shares in the company. Relevant to the Series 79, Series 24, Series 62 and Series This rule gives a corporation that may be the target of an acquisition fair warning in advance. Schedule 13D requires the group to disclose the number series 7 nasd advanced options and margin trading shares owned, background information on the individual filing the form, the purpose of the transaction, and the source of series 7 nasd advanced options and margin trading funds to finance the acquisition of the shares.
Schedule 13D must be filed within 10 days of the acquisition of the stock. FINRA has changed its rules to reflect the loosened standards for research analyst activities in connection with offerings of emerging growth companies EGCs. FINRA announced the changes on November series 7 nasd advanced options and margin trading,but they are effective retroactively to either April 5, or October 11,depending on the specific change. The changes include the following:. The new rule just provides one definition for spreads overall, along with a separate definition for box spreads.
The margin requirement for a short option within a spread is the lesser the normal requirement for the option and the maximum potential loss of the spread.
FINRA will clarify and modify how non-margin securities held in a margin account interact with the maintenance margin requirement. Firms cannot extend maintenance loan value on non-margin securities except under specific conditions. FINRA will delete the requirement to stress test portfolio margin accounts in aggregate.
Firms must still stress test individual portfolio margin accounts. Be sure to submit your answers in the comments section below. A couple has just had a baby and they want to start saving for college. What option does NOT offer the opportunity for their investment to grow free of federal taxes?
FINRA also reminds firms of the changes to certain trade reporting and dissemination requirements set to take effect November 5, SPDS will provide real-time last sale data and other transaction information. SPDS, in its initial implementation, will only disseminate information series 7 nasd advanced options and margin trading transactions in agency pass-through mortgage-backed securities that are traded to be announced TBA.
These changes apply to transactions in TRACE-eligible securities that are agency pass-through mortgage-backed securities that are traded to be announced TBA transactions. For additional details, please see the prior exam alert on this change. Assets may only be used for education expenses IV.
Be sure to submit your answers in the comments section and check back tomorrow for the correct answer and rationale. Which of the following is not true regarding tender offers by third-parties? All recommendations on the tender offer made by the targeted company, its affiliates, and certain other parties must be made using SEC Form, Schedule 14D-9 Correct Answer: An individual or group acting together must file a Schedule 13D form when: The changes include the following: Education Savings Account B: None of the choices listed Correct Answer: None of the choices listed.