Series 7 Rules And Regulations

Front 1

This type of prohibited activity occurs when a registered rep signs someone else's name to a document or causes another person to do so.

Back 1

Forgery

Front 2

This type of prohibited activity occurs when employess of a memeber firm protect a customer against lossses by refunding or reimbursing losses

Back 2

Guarantees

Front 3

This type of prohibited practice occurs when a registered rep temporarily holds a position for a customer in order to avoid regulation or net capital requirements

Back 3

Parking

Front 4

This type of prohibited activity occurs when a registered rep willfuly fails to act on a clients instructions

Back 4

Failure to follow customer instructions

Front 5

This type of prohibited practice occurs when a broker dealer fails to keep clients securities separate from those owned by the broker dealer

Back 5

Comingaling funds

Front 6

Which securities are exempt from the 5% mark up rule?

Back 6

Issues that require the delivery of a prospectus

Front 7

When does the Trust Indenture act of 1939 apply to corporations?

Back 7

When they issue bonds of $5 million or more in a 12 month period and the bonds have a maturity of nine months or more

Front 8

What are the requirements for investment companies under the 1940 Act?

Back 8

1. Register with the SEC before public trading
   
2. clearly state investment objectives in prospectus and registration statement
3. Have a net worth of at least $100,000
4. be owned by at least 100 shareholders
5. Comply with standards on pricing, public sales, and reporting

Front 9

What punishments may a Broker dealer be subject too if they fail to comply with SEC regulations?

Back 9

1. Censure
   
2. Limits on activities, functions or operations
3. Suspension of its registration
4. revocation of registration
5. fines

Front 10

This is the type of communication sent to 25 or fewer retail customers within a 30 calendar day period

Back 10

Retail correspondance

Front 11

This type of commiunication is any type of communication distributed too or made available onl to institutional investors

Back 11

Institutional Communications

Front 12

This type of communiciation is any type of communication sent to more than 25 retail investors within a 30 calender day period

Back 12

Retail communication

Front 13

What are the review and retention rules for retail correspondance?

Back 13

Retail corresponance must be supervised and monitered by the memeber firm, but is not required to be apporved by a principal prior to use. Does NOT need to be filed with FINRA

Front 14

What are the review and retention rules for Intitutional Communication?

Back 14

Institutional Communication must be supervised and monitored by the member firm, but is not required to be approved by a principal prior to use.

Front 15

Another firm has previously filed the communications with FINRA and it has not been materially altered, does it need approval?

Back 15

Does not require principal approval

Front 16

The communication was posted on on an online interative electronic forum, does it need approval?

Back 16

Does not require principal apporval

Front 17

the communication does not make financial or investment recommandations, The communication does not promote the firms products or services and it is not a research report, does it need to be approved?

Back 17

does not require principal approval

Front 18

When is a firm that has been a FINRA member for less than a year required to file communications?

Back 18

All communications, 10 days prior to first use

Front 19

When must a firm with disciplinary issues file communications with FINRA?

Back 19

All communications, 10 days prior to first use

Front 20

When must registered investment companies that created material include rankings or comparisons that have been created by the investment company itself file the communication with FINRA?

Back 20

10 days prior to first use

Front 21

When must retail communications be filed with FINRA for materials pertaining to Security Futures?

Back 21

10 days prior to first use

Front 22

When must retail communications be filed with FINRA for materials relating to bond mutual funds, that include volitility ratings?

Back 22

10 days prior to first use

Front 23

When must retail communications be filed with FINRA for materials that pertain to registered investment companies (without rakings or comparisons included)

Back 23

10 days after first use

Front 24

When must retail communications be filed with FINRA for materials that pertain publicly traded direct participation programs?

Back 24

10 days after first use

Front 25

When must retail communications be filed with FINRA for materials that pertain to SEC registered CMOs

Back 25

10 Days after first use

Front 26

When must retail communications be filed with FINRA for materials that pertain to any security registed with the SEC and derived from or based on a single security, a baseket of securities, an index, commodity, a debt issuance, or a forien currency

Back 26

10 days after first use

Front 27

When must retail communications be filed with FINRA for materials such as TV comercials?

Back 27

10 days after first use or broadcast

Front 28

When must retail communications be filed with FINRA for materials that have already been filed with FINRA and that have not materialy been changed

Back 28

Exempt

Front 29

When must retail communications be filed with FINRA for materials that pertain that do not make financial or investment recomondations and do not promote a product or service by the member firm

Back 29

Exempt

Front 30

When must retail communications be filed with FINRA for materials that simply identify a memeber firms firms national exchange symbole or idneity fy a security which the member is a registered market maker of, or idneity that the member firm offers a specefic security at a stated price

Back 30

Exempt

Front 31

When must retail communications be filed with FINRA for materials such as tombstone adds or a prospectus

Back 31

exempt

Front 32

When must retail communications be filed with FINRA for materials such as press releases

Back 32

Exempt

Front 33

When must retail communications be filed with FINRA for materials that are a reprint or an excerpt of an article or report that is issued by a non affiliated publisher?

Back 33

Exempt

Front 34

When must retail communications be filed with FINRA for materials that simply refer to types of investments as a part of a listing of products and services offered by a memeber firm

Back 34

exempt

Front 35

FINRA new account requirements for a RR of a different firm

Back 35

1. Prior written notification to employer,

2. duplicate confirmations and statements to employer if requested,

3. notifying the person opening the account that these procedures will be followed

Front 36

MSRB new account requuirements for a RR of a different firm

Back 36

1. Prior written notification to employer

2. duplicate confirmations and statements