SIE Exam Question 271: Answer and Explanation

Question: 271

FINRA has promulgated various rules and procedures pertaining to the operation of broker-dealers and departments within member firms. The M&A Department:

• A. Is tasked with supervising Managed accounts and Asset Allocation accounts.
• B. Is in charge of rules governing the Member and Associated persons.
• C. Creates the firm's procedures pertaining to Merger and Acquisition activity
• D. Deals with Market making and inventory Acquisition for the firm.

Correct Answer: C

Explanation:

C: M&A means mergers and acquisitions. This department assists companies in their efforts to buy another company or sell their company to an interested buyer.