Free Series 57 flashcards

Only members. The NYSE Floor dealings rule reaches all of that activity: making or accepting bids and offers, consummating transactions, and otherwise transacting business on the Floor. The one carve-out lets an appropriately registered and supervised clerk in an approved booth premise process orders sent to the booth.

Pillar. The NYSE American options order types rule and the NYSE Arca options order types rule each state that the rule is not applicable to trading there.

Subscriber. Under that branch a firm has market access by being a member of the exchange or a subscriber of the alternative trading system, respectively, so membership belongs to the exchange and subscription to the ATS.

The error must be obvious. An obvious error in a term is the entry test for the clearly erroneous transaction rules, which are a narrow route rather than a general do-over.

The exchange lists it for trading during all trading sessions. A class the exchange lists for regular trading hours only is not one, and the two class types open their order and quote entry windows at different times.

TRUE. The prohibition names four inventory actions and no others, so an answer that stretches it to conduct outside that list is reading in words the prohibition does not carry.

That the offering of the security is registered under the Securities Act. The IPO-related transactions rule joins its two parts with "and", so registration on its own does not make a security subject to an initial public offering.

Exceeding a minimum price, net tangible assets of the issuer, or other relevant criteria. This clause is one reason the working tests sit in the SEC's penny stock definition rule rather than in the statute.

FALSE. The Cboe order types rule allows an order to be either a limit or a market order and nothing else. Stop and Stop-Limit are Order Instructions that turn an order into a market order or a limit order once the stop price is reached.

Any sale consummated by the delivery of a security borrowed by, or for the account of, the seller. The borrow can be the seller's own or one made by someone else for the seller's account.

Immediately prior to filing the registration statement with respect to that offering. The issuer's status is fixed at that single moment, so an issuer that becomes a reporting company later still meets the test.

FALSE. The statute lets the SEC exempt a security from the term in whole or in part, conditionally or unconditionally, by rule, regulation or order.

Trading outside of regular trading hours. The extended hours trading risk disclosure rule carries its only definitions inside the model disclosure statement it prints.

The member accepts and holds a customer order in an equity security without immediately executing it, and trades that security on the same side of the market for its own account at a price that would satisfy the order. These are the facts the prohibition's own sentence names. For a held limit order, the minimum price improvement standards also require the fill when the member's own trade betters the limit price by less than the standards' minimum.

Any NMS security, as the Regulation NMS definitions define it. The regulation builds no separate list for the statute's phrase; it points the statutory term straight at its own NMS security definition, so the two phrases name one set.

No. Pre-market and post-market trading both fall inside the one defined term, extended hours trading, and the extended hours trading risk disclosure rule sets no separate duty for either session. The statement already furnished meets the precondition.

FALSE. The rule does not ban proprietary trading while a customer order rests. It bans a proprietary trade on the same side of the market at a price that would satisfy the held order, unless the member immediately thereafter fills the customer on the terms the rule sets.

TRUE. The NMS security definition reaches a security whose transaction reports are collected, processed and made available under an effective national market system plan for reporting transactions in listed options. It also reaches a security reported under an effective transaction reporting plan.

No. The rule's duty to report to FINRA covers NMS stock transactions effected otherwise than on or through a national securities exchange, and this trade was executed on one.

Exercising investment discretion over accounts and effecting national market system (NMS) securities transactions through registered broker-dealers at or above the identifying activity level, or voluntarily registering by filing Form 13H with the SEC. Either route alone makes the person a large trader.

TRUE. The member must give or send the customer written notification, the confirmation, in conformity with the SEC confirmation rule. FINRA's rule then adds items of its own on top of that federal content.

A trade effected by a FINRA member otherwise than on or through a national securities exchange. The definition is written for the whole rule series on quoting and trading in national market system (NMS) stocks.

By filing Form 13H electronically with the SEC. The filing itself confers large trader status, with no level of trading activity required first.

Any broker or dealer. The rule makes it unlawful for any broker or dealer to effect a customer transaction, or to induce a customer's purchase or sale, without giving or sending the written notification at or before completion. FINRA's customer confirmation rule binds a member.