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Wiley FINRA Series 10 Exam Review 2017: The General Securities Sales Supervisor Examination -- General Module

ISBN: 978-1-119-37986-7
360 pages
March 2017
Wiley FINRA Series 10 Exam Review 2017: The General Securities Sales Supervisor Examination -- General Module (1119379865) cover image

Description

The go-to guide to acing the Series 10 Exam!

Passing the General Securities Sales Supervisor Qualification Exam (Series 9 and 10) qualifies an individual to supervise sales activities in corporate, municipal, and option securities; investment company products; variable contracts; and direct participation programs. The exam covers hiring, qualification, and continuing education; supervision of accounts and sales activities; conduct of associated persons; recordkeeping requirements; and municipal securities regulation. All candidates must have passed the Series 7 Exam before taking the Series 10.

Created by the experts at The Securities Institute of America, Inc., Wiley Series 10 Exam Review 2017 arms you with everything you need to pass this four-hour, 145-question test. Designed to help you build and fine-tune your knowledge of all areas covered in the exam and to guarantee that you're prepared mentally and strategically to take the test, it provides:

  • Dozens of examples
  • Assorted practice questions for each subject area covered in the exam
  • Priceless test-taking tips and strategies
  • Helpful hints on how to study for the test, manage stress, and stay focused

Wiley Series 10 Exam Review 2017 is your ticket to passing the Series 10 test on the first try—with flying colors!

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Table of Contents

About the Series 10 Exam xi

About This Book xv

About the Test Bank xvii

About the Securities Institute of America xix

Chapter 1 Supervision of Brokerage Office Personnel and Procedures 1

Hiring New Employees 1

Resignation of a Registered Representative 3

Registration Exemptions 4

Foreign Broker Dealers 5

Compensation Paid to Unregistered Persons 5

Retiring Representatives/Continuing Commissions 6

Persons Ineligible to Register 6

Disciplinary Actions Against a Registered Representative 7

Termination for Cause 8

Outside Employment 9

Private Securities Transactions 9

Gift Rule 9

Communications with the Public 10

FINRA Rule 2210 Communications with the Public 11

Broker Dealer Websites 14

Sharing in a Customer’s Account 15

Borrowing and Lending Money 15

Order Tickets 16

Executing an Order 16

Becoming a Stockholder 17

Accrued Interest 22

Close Outs 23

Customer Confirmations 23

Rules for Good Delivery 24

Delivery of Round Lots 25

Delivery of Bond Certificates 26

Rejection of Delivery 26

Reclamation 27

Marking to the Market 27

Customer Account Statements 27

Carrying of Customer Accounts 28

Dividend Distribution 29

Proxies 32

Box Counts 32

Missing and Lost Securities 33

The Customer Protection Rule 34

Broker Dealer Books and Records 35

Pretest 41

Chapter 2 General Supervision and Customer Recommendations 45

The Role of the Principal 45

Supervisor Qualifications and Prerequisites 46

Continuing Education 47

Tape Recording Employees 49

Heightened Supervisory Requirements 50

Information Obtained from an Issuer 50

Customer Complaints 50

Mediation 51

Code of Arbitration 52

Investor Information 54

Member Offices 54

Business Continuity Plan 58

Recommendations to Customers 59

Research Reports 68

Recommendations through Social Media 71

Regulation FD (Fair Disclosure) 72

The Insider Trading & Securities Fraud Enforcement Act of 1988 73

Firewall 74

Pretest 75

Chapter 3 Supervision of Customer Accounts 77

Opening a New Account 77

Holding Securities 79

The Depository Trust Company (DTC) 80

Mailing Instructions 81

Types of Accounts 81

Trading Authorization 84

Retirement Plans 88

Accounts for Employees of Other Broker Dealers 101

Numbered Accounts 102

Prime Brokerage Accounts 102

Account Transfers 102

Margin Accounts 104

Special Memorandum Account (SMA) for a Long Margin Account 111

Wrap Accounts 121

Regulation S-P 121

Identity Theft 122

Currency Transactions 123

The Patriot Act 123

Isolated Sales Account 125

Securities Investor Protection Corporation Act of 1970 (SIPC) 125

Health Savings Accounts 126

The Department of Labor Fiduciary Rules 127

The Penny Stock Cold Call Rule 127

Pretest 129

Chapter 4 Sales Supervision of New Issues 133

The Securities Act of 1933 133

Freeriding and Withholding/FINRA Rule 5130 137

Underwriting Corporate Securities 139

Exempt Securities 143

Exempt Transactions 144

Rule 137 Nonparticipants 151

Rule 138 Nonequivalent Securities 151

Rule 139 Issuing Research Reports 151

Rule 415 Shelf Registration 152

Regulation M, Rule 104 153

Underwriting Direct Participation Programs 155

Investment Company Registration 155

Mutual Fund Distribution 156

Pretest 163

Chapter 5 Supervision of the Secondary Market 167

The Securities Exchange Act of 1934 167

Listing Requirements for the NYSE 172

Types of Orders 175

The Exchanges 178

Priority of Exchange Orders 179

Limit Up Limit Down (LULD) 193

The Nasdaq Market 194

Pink OTC Market 205

Trade Reporting and Comparison Service (TRACS) 205

Advanced Computerized Execution System (ACES) 206

The Order Audit Trail System (OATS) 206

Electronic Communication Networks (ECNs) 207

Direct Market Access 208

Rogue Trading Prevention 209

Third Market 209

Nasdaq Market Center for Listed Securities 209

Fourth Market 210

SEC Regulation ATS 210

FINRA 5% Markup Policy 211

Markups and Markdowns When Acting as a Principal 212

Riskless Principal Transactions 213

Proceeds Transactions 213

Dominated and Controlled Markets 213

ACT/TRF Trade Scan 214

Pretest 219

Chapter 6 MSRB Rules and Regulations 223

Municipal Bonds 223

Issuing Municipal Securities 224

Municipal Fund Securities 235

Variable Rate Securities 236

Municipal Bond Trading 236

Recommending Municipal Bonds 242

Municipal Bond Advertising 242

Municipal Bond Insurance 242

Political Contributions 243

Registration Requirements for Municipal Securities Professionals 245

MSRB Overview 246

Pretest 251

Answer KeyS 255

Glossary of Exam Terms 261

Index 327

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