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Free Series 24 Sample Exam Questions Results

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Exam: Free Series 24 Sample Exam Questions
Time Spent: 00 hours 5 minutes 58 seconds
Max. Marks: 10
Marks Obtained: 3
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Q. No Question Correct Answer Your Answer Explanation
1. A customer who maintains an account with a broker dealer enjoys working with his agent when making investment decisions. Virtually all of the customer’s orders are executed by his registered rep once a trading decision has been made. The customer has owned 500 shares ABC Microchips for some time and his rep is on vacation in the week just prior; to ABC releasing its earnings. Concerned about how the report will be received the customer logs on to his account to sell his 500 shares of ABC. Not being familiar with the online trading platform the customer enters the order to buy 500 shares of ABC instead of entering an order to sell 500 shares. The customer is now long 1,000 shares instead of being flat. Which of the following is true? The customer should be advised to sell 1,000 shares of ABC The customer should be advised to sell 1,000 shares of ABC

The customer is who is now long 1,000 shares of ABC should be advised to enter an offsetting order to sell 1,000 shares of ABC. Any losses as a result of the customer’s error will be absorbed by the customer and are not the responsibility of the firm.

2. A large producer has decided to open his own broker dealer. Once the firm is approved the firm will be required to submit its compliance and supervisory certification: no later than the first anniversary of its approval no later than the time the firm files its FOCUS report

A newly approved member firm is required to submit its annual compliance certification no later than the first anniversary of its approval and annually thereafter.

3. As it pertains to a 144A offering, who is required to identify potential buyers as meeting the definition of a qualified institutional buyer (QIB)? The broker dealer The broker dealer

As it pertains to a 144A offering, the broker dealer is required to identify potential buyers as meeting the definition of a qualified institutional buyer (QIB).

4. III and IV I and II

A 5 minute trading pause will only take place after the stock fails to trade within the band after 15 seconds. A marker maker may not pull its quotes due to a trading pause. During the pause quotes will continue to be displayed. Orders for the security may be accepted but no orders may be executed during the pause.

5. As it relates to the annual certification required under FINRA Rule 5878 which of the following is not true ? The certification must be submitted to the board of directors within 10 business days The firm must certify that it is in compliance with all SRO regulations

As it relates to the annual certification required under FINRA Rule 5878 all of the items listed are true except the certification be submitted to the board within 45 day or by the next meeting whichever occurs first

6. Every member firm must submit true and complete information on form BD and must identify which of the following? Identity of chief compliance officers Identity of OSJ principals

Every member firm must submit true and complete information on form BD and must identify the name or names of chief compliance officers.

7. Hot Stock Underwriters is the syndicate manager for a new issue (IPO). As part of the effort a road show is being held in the large financial markets. An analyst from Hot Stock Underwriters may: attend only if the company is an emerging growth company  attend if a supervisory analyst is also in attendance

A research analyst may May only attend a road show if the company meets the definition of emerging growth company. One with less than $1 billion in annual revenue

8. Mr. Jones enters an order with his representative to buy 500 shares of a NASDAQ global market security at 10 AM on Friday. The firm will be required to submit the details of the trade on the CATS report by: 8 AM Monday 4 PM Friday

CATS reports must be made by 8 a.m. on T+1 on the business day following
the trade date. For trades executed on Friday, CATS reports may be
submitted on Saturday but must be submitted by 8 a.m. Monday morning.

9. III and IV III and IV

A customer who sells stock short will owe the dividend to the lender of the stock. The customer who went short the stock will have their account debited for the amount of the dividend owed. The person who bought the stock from the short seller will receive and is entitled to the dividend paid on the shares purchased from the short seller

10. XYZ broker dealer has a long tenured analyst working in the research department. The analyst is writing a research report as part of his review of a target company. As it relates to the report which of the following is true ? The report must be submitted to the audit committee A tenured analyst is not required to submit reports

A supervisory analyst must approve the release of all research reports. A series 24 general securities principal is not qualified to approve research