Wiley Series 10 Securities Licensing Exam Review 2020 + Test Bank The General Securities Sales Supervisor Examination--General Module

The go-to guide to acing the Series 10 Exam!

Passing the General Securities Sales Supervisor Qualification Exam (Series 9 and 10) qualifies an individual to supervise sales activities in corporate, municipal, and option securities; investment company products; variable contracts; and direct participation programs. The exam covers hiring, qualification, and continuing education; supervision of accounts and sales activities; conduct of associated persons; recordkeeping requirements; and municipal securities regulation. All candidates must have passed the Series 7 Exam before taking the Series 10.

Created by the experts at The Securities Institute of America, Inc., Wiley Series 10 Exam Review 2020 arms you with everything you need to pass this four-hour, 145-question test. Designed to help you build and fine-tune your knowledge of all areas covered in the exam and to guarantee that you're prepared mentally and strategically to take the test, it provides:

• Dozens of examples
• Assorted practice questions for each subject area covered in the exam
• Priceless test-taking tips and strategies
• Helpful hints on how to study for the test, manage stress, and stay focused

Wiley Series 10 Exam Review 2020 is your ticket to passing the Series 10 test on the first try—with flying colors!

About the Series 10 Exam xi

About this Book xv

About the Test Bank xvii

About the Securities Institute of America xix

Chapter 1 Supervision of Brokerage Office Personnel and Procedures 1

Hiring New Employees 1

Resignation of a Registered Representative 3

Registration Exemptions 4

Foreign Broker Dealers 5

Compensation Paid to Unregistered Persons 5

Retiring Representatives/Continuing Commissions 6

Persons Ineligible to Register 6

Disciplinary Actions Against a Registered Representative 7

Termination for Cause 8

Outside Employment 9

Private Securities Transactions 9

Gift Rule 9

Communications with the Public 10

FINRA Rule 2210 Communications with the Public 11

Broker Dealer Websites 14

Sharing in a Customer’s Account 15

Borrowing and Lending Money 15

Order Tickets 16

Executing an Order 16

Becoming a Stockholder 17

Accrued Interest 22

Close Outs 26

Customer Confirmations 26

Rules for Good Delivery 27

Delivery of Round Lots 28

Delivery of Bond Certificates 29

Rejection of Delivery 29

Reclamation 30

Marking to the Market 30

Customer Account Statements 30

Carrying of Customer Accounts 31

Dividend Distribution 32

Proxies 35

Box Counts 35

Missing and Lost Securities 36

The Customer Protection Rule 37

Broker Dealer Books and Records 38

Pretest 43

Chapter 2 General Supervision and Customer Recommendations 47

The Role of the Principal 47

Supervisor Qualifications and Prerequisites 48

Continuing Education 49

Tape Recording Employees 51

Heightened Supervisory Requirements 52

Information Obtained from an Issuer 52

Customer Complaints 52

Mediation 53

Code of Arbitration 54

Investor Information 56

Member Offices 56

Business Continuity Plan 60

Recommendations to Customers 61

Research Reports 72

Recommendations through Social Media 75

Regulation FD (Fair Disclosure) 77

The Insider Trading & Securities Fraud Enforcement Act of 1988 77

Firewall 78

Pretest 79

Chapter 3 Supervision of Customer Accounts 81

Opening a New Account 81

Holding Securities 83

The Depository Trust Company (DTC) 84

Mailing Instructions 85

Types of Accounts 85

Trading Authorization 88

ABLE accounts 92

Retirement Plans 94

Accounts for Employees of Other Broker Dealers 106

Numbered Accounts 107

Prime Brokerage Accounts 107

Account Transfers 107

Margin Accounts 109

Special Memorandum Account (SMA) for a Long Margin Account 116

Wrap Accounts 126

Regulation S-P 126

Identity Theft 127

FINRA Rules on Financial Exploitation of Seniors 128

Currency Transactions 129

The Patriot Act 129

Isolated Sales Account 131

Securities Investor Protection Corporation Act of 1970 (SIPC) 132

Health Savings Accounts 133

The Department of Labor Fiduciary Rules 133

The Penny Stock Cold Call Rule 134

Pretest 137

Chapter 4 Sales Supervision of New Issues 141

The Securities Act of 1933 141

Freeriding and Withholding/FINRA Rule 5130 145

Underwriting Corporate Securities 147

Exempt Securities 151

Exempt Transactions 152

Rule 147 Intrastate Offering 159

Rule 137 Nonparticipants 159

Rule 138 Nonequivalent Securities 160

Rule 139 Issuing Research Reports 160

Rule 415 Shelf Registration 161

Regulation M, Rule 104 161

Underwriting Direct Participation Programs 163

Investment Company Registration 164

Mutual Fund Distribution 165

Pretest 171

Chapter 5 Supervision of the Secondary Market 175

The Securities Exchange Act of 1934 175

Listing Requirements for the NYSE 180

Types of Orders 183

The Exchanges 186

Priority of Exchange Orders 187

Limit Up Limit Down (LULD) 201

The Nasdaq Market 202

Pink OTC Market 213

Trade Reporting and Comparison Service (TRACS) 213

Advanced Computerized Execution System (ACES) 214

The Order Audit Trail System (OATS) 214

Electronic Communication Networks (ECNs) 215

Direct Market Access 216

Rogue Trading Prevention 217

Third Market 217

Nasdaq Market Center for Listed Securities 218

Fourth Market 218

SEC Regulation ATS 218

FINRA 5% Markup Policy 219

Markups and Markdowns When Acting as a Principal 220

Riskless Principal Transactions 221

Proceeds Transactions 221

Dominated and Controlled Markets 222

ACT/TRF Trade Scan 222

Pretest 227

Chapter 6 MSRB Rules and Regulations 231

Municipal Bonds 231

Issuing Municipal Securities 232

Municipal Fund Securities 243

Variable Rate Securities 244

Municipal Bond Trading 244

Recommending Municipal Bonds 250

Municipal Bond Advertising 250

Municipal Bond Insurance 250

Political Contributions 251

Registration Requirements for Municipal Securities Professionals 253

MSRB Overview 254

Pretest 259

Answer Keys 263

Glossary of Exam Terms 269

Index 335

The Securities Institute of America, Inc. has an 18 year track record for excellence in securities exam training. Jeffrey Van Blarcom author from The Securities Institute of America, Inc. helps thousands of securities and insurance professionals build successful careers in the financial services industry every year Learn more at : https://securitiesce.com

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