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NEW QUESTION: 1
Mr. Donald is the owner and CEO of Just Ducky Broker-Dealers. His wife, Ms. Daisy handles all the
ministerial duties for the firm. The firm has three other employees. Huey is the municipal bond specialist
and handles client trades in municipal securities only; Dewey handles only mutual fund sales for clients;
Louie handles all aspects of client trading in stocks, corporate bonds, and options. Which of the following
statements regarding the minimum FINRA registration requirements for these individuals is true?
A. Mr. Donald, Ms. Daisy, Dewey and Louie must be registered as general securities representatives, and
Huey must be registered as a limited securities representative under FINRA rules.
B. Under FINRA rules, Mr. Donald must register as a principal, Dewey must be registered as a limited
securities representative, and Louie must be registered as a general securities representative. Daisy and
Huey need not be registered.
C. Mr. Donald and Ms. Daisy must be registered as principals, and the other three must be registered as
general securities representatives under FINRA rules.
D. Mr. Donald, Huey, Dewey and Louie must all be registered as general securities representatives in
accordance with FINRA rules.
Answer: B
Explanation:
The true statement regarding FINRA registration requirements for the individuals is that Mr.
Donald must register as a principal; Dewey must be registered as a limited securities representative; and
Louie must be registered as a general securities representative. Daisy and Huey need not be registered.
Mr. Donald is actively involved in the management of Just Ducky and, as such, he must register as a
principal. Dewey handles mutual fund sales and, at a minimum, must be licensed as a limited
representative. Louie, who executes stock, bond, and option transactions, must be licensed as a general
securities representative. Huey is exempt from registration requirements since he trades in municipal
securities only. Daisy is exempt since she handles only the ministerial duties of the firm.
NEW QUESTION: 2
A registered bond with "Happy Birthday" scrawled across the face of the certificate is delivered to a
broker/dealer in satisfaction of sale by another member firm. Assuming it is accompanied by an authentic
assignment, power of substitution form, and tax stamps (if appropriate), this is good delivery only if:
A. the certificate is validated by the transfer agent
B. the marking did not cover the name of the registered owner or the principal amount of the bond
C. this is not a good delivery under any circumstances
D. the certificate is validated by the registered owner
Answer: A
Explanation:
the certificate is validated by the transfer agent. A mutilated bond must be validated before it
can be a good delivery. The validation can be made by the issuer or the transfer agent.
NEW QUESTION: 3
What tool is used to facilitate communication among managers to ensure similar performance standards are applied to all employees?
Please choose the correct answer.
Response:
A. Calibration
B. Stack Ranker
C. Performance Management
D. 360 Multi-Rater Review
Answer: A
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