4.01-4.02 Test

Front

Violators of the SEC rules of the Securities Exchange Act of 1934 are subject to criminal penalties. The maximum penalty for an individual is:

Back

$1,000,000, imprisonment for 10 years, or both

Front

If an investor requests additional information about a trade confirmation that he/she received, the requested information must be furnished to him/her within:

Back

five business days of the request

Front

During a sales meeting with a customer, a registered representative states that he is so confident about the investment he will reimburse the customer for any losses. This arrangement is:

Back

three years

Front

The maximum penalty that can be imposed on a business entity for false or misleading information on any SEC report or application is:

Back

$250,000

Front

A firm that is required to start tape recording their telemarketing activities must continue to do so for what period of time?

Back

3 years

Front

A private securities transaction exists when a representative:

Back

is selling away

Front

Which individuals are required to register with FINRA? Options: those who are associated with a member and are to function as Assistant Representatives-Order Processing, those who are not actively engaged in the investment banking or securities business, those who impact securities transactions only on the floor of an exchange, those whose sole functions are limited to clerical duties

Back

those who are associated with a member and are to function as Assistant Representatives-Order Processing

Front

The Sarbanes-Oxley Act of 2002 is legislation that was passed in response to:

Back

accounting scandals

Front

One of the main provisions of the Gramm-Leach-Bliley Act requires financial institutions to:

Back

protect the privacy of consumer personal monetary information

Front

Which regulatory agency would be concerned with price fixing and unfair competitive prices?

Back

Federal Trade Commission