A Series 24 Exam Question!

Here is a great series 24 exam question from the Supervision of Brokerage Office Operations section of the series 24 exam:

When a customer enters a sell order and the customer is in possession of the certificates, a broker dealer must determine all of the following except:


A) Whether the securities are in deliverable form

B) The location of the securities

C) Whether the client can make delivery promptly

D) Whether the transfer agent has accepted the securities

ANSWER:

D) A firm must make an affirmative determination and be reasonably sure the client can make prompt delivery. Approval of the transfer agent is not a factor when accepting a sell order.

Take some free series 24 exam questions on our site at:

http://www.securitiesce.com/web/pages/series24/index.php

Series 24 Exam Question!

Here is a great series 24 exam question from the Supervision of Brokerage Office Operations section of the series 24 exam:

When a customer enters a sell order and the customer is in possession of the certificates, a broker dealer must determine all of the following except:


A) Whether the securities are in deliverable form

B) The location of the securities

C) Whether the client can make delivery promptly

D) Whether the transfer agent has accepted the securities

ANSWER:

D) A firm must make an affirmative determination and be reasonably sure the client can make prompt delivery. Approval of the transfer agent is not a factor when accepting a sell order.

Take some free series 24 exam questions on our site at:

http://www.securitiesce.com/web/pages/series24/index.php

Series 24 Exam Information

Here is some great series 24 exam information regarding Rule 144
Rule 144



Rule 144 regulates how control or restricted securities may be sold. Rule 144 designates:


 The holding period for the security

 The amount of the security that may be sold

 Filing procedures

 Method of sale


Control securities are owned by officers, directors, and owners of 10% or more of the company’s outstanding stock. Control stock may be obtained by insiders through open market purchases or though the exercise of company stock options. There is no holding period for control securities. However, insiders are not allowed to earn a short swing profit through the purchase and sale of control stock in the open market. If the securities were held less than 6 months, the insider must return any profit to the company.


Restricted securities may be purchased by both insiders and investors though a private placement or be obtained through an offering other than a public sale. Securities obtained through a private placement or other non-public means need to be sold under rule 144 in order to allow the transfer of ownership. Restricted stock must be held fully paid for, for 6 months. After 6 months the securities may be sold freely by non-insiders. Rule 144 sets the following volume limits for both restricted and control stock during any 90-day period. The seller must file form 144 at the time the order is entered and for NYSE and NASDAQ listed securities the sale is limited to the greater of:


 The average weekly trading volume for the preceding four weeks; Or

 1% of the issuer’s total outstanding stock

Under Rule144 the volume limitation for Non NASDAQ securities is 1% of the issuer’s outstanding stock. All sales under Rule 144 require that the issuer have adequate financial information publicly available and is filing reports with the SEC. Form 144 does not need to be filed for orders for 5000 shares or less and that do not exceed $50,000.

take some free series 24 exam questions on our site at:


http://www.securitiesce.com/web/pages/series24/index.php

series 24 Exam

Here is some great information for the series 24 exam relating to net transactions with customers:


Net Transactions With Customers:




A broker dealer when acting as principal may execute a transaction for a customer as a “net transaction”. In a net transaction the broker dealer will purchase the security in the market place at one price and sell it to the customer at a higher price for a profit instead of charging the customer a markup. The profit received by the broker dealer is not reported on the customer’s confirmation, which only shows the net price. Because the trades take place at two different prices both trades must reported to the tape though the NASDAQ TRF. Individual customers must give the broker dealer written permission for each trade to be executed on a net basis. Institutional customers may approve net transactions orally, in writing or may give blanket consent by not replying to a negative consent letter which would allow the institution to opt out of net transactions by replying to the letter.

take some free series 24 exam questions on our site at:
 
http://www.securitiesce.com/web/pages/series24/index.php

Series 24 Exam Question

Here is a great series 24 exam question :

An MFP donates $2,500 to a candidate in an election where they are not able to vote. The candidate running for municipal office is an old college friend of the MFP. Which of the following is true?



A) The employing firm has no restrictions due to the relationship between the MFP and the candidate.

B) If the employing firm wants to bid on an offering in that municipality it must get prior permission from FINRA.

C) The firm is restricted from bidding on offerings in that municipality for 2 years.

D) The firm is restricted from bidding on offerings in that municipality for 270 days.

Anser:

(C) The firm is restricted from bidding on offerings is that municipality for 2 years because the donation was greater than $250 and the MFP making the donation can not vote in the election.

Take some free series 24 exam questions on our site at:

http://www.securitiesce.com/web/pages/series24/index.php

How Hard is The Series 24 Exam?

We get asked questions about the pass rates for the series 24 exam all of the time. The series 24 exam is among the most challenging for students for several reasons.

1) Most students have not sat on trading desks or made markets in securties

and

2) Most have students have not been part of a syndicate that have structured corporate or municipal securities offerings.

These are the areas that tend to give students the most difficulty. We recommend that students spend a lot of time reviewing this sections to ensure that they are well prepared for the series 24 exam.

Take some free series 24 sample questions on our site at:

http://www.securitiesce.com/web/pages/series24/index.php


Good Luck on your series 24 exam!