SIE Understanding Trading, Customer Accounts and Prohibited Activities Practice Test 3

1. Which of the following is addressed by 1934 Act Section 15c1-2 – Fraud and Misrepresentation?

2. Which of the following is forbidden to unregistered persons?

3. Which of the following correctly describes the situation of FINRA's discipline of registered representatives regarding a customer's signatures under FINRA Rule 2010?

4. Which of the following is not accomplished with an expectation of profit if the security's price declines?

5. Which of the following refers to the position of an investor who owns a security?

6. Which of the following would involve a broker-dealer acting in the capacity of a principal?

7. FINRA Rule 2120 – "Commissions, Mark Ups and Charges" relates to which of the following situations?

8. Markup/markdown is the compensation earned by the broker-dealer in which of the following circumstances?

9. Which of the following is not allowed as a consideration of compensation under FINRA Rule 2121 – Fair Prices and Commissions?

10. Which of the following FINRA Rules requires a broker-dealer to disclose to a customer when the broker-dealer participates in the transaction by arranging for a security to be purchased at a lower price and sold to the customer at a higher price?

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