4.01-4.02 Test

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

• $100,000

• $500,000

• $1,000,000, imprisonment for 5 years, or both

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

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

• thirty days of the request

• five business days of the request

• five business days after the data of the transaction

• fifteen business days after the date of the transaction

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:

• one year

• three years

• five years

• indefinitely

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

• $1,000

• $100,000

• $200,000

• $250,000

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

• 1 year

• 3 years

• 5 years

• indefinitely

A private securities transaction exists when a representative:

• has a joint account with a family member

• makes a trade from his personal account

• is engaged with an outside business

• is selling away

Which individuals are required to register with FINRA?

• 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

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

• tax settlements

• collection activities

• investment options

• accounting scandals

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

• protect the privacy of consumer personal monetary information

• provide consumers with information about their credit rating

• offer credit to any individual who is currently employed

• assist individuals who have had their identity stolen

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

• Consumer Product Safety Commission

• Federal Communications Commission

• National Labor Relations Board

• Federal Trade Commission