Series 24 General

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Series 24 General
2012-10-14 23:20:26
Series 24 General

various questions and answers based on the series 24 material
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  1. A durable power of attorney allows what?
    • Discretionary account authority
    • until death of the customer
    • continues if the customer becomes mentally in competent
  2. SEC Rule 15c3-3
    The Customer Protection Rule: requires carrying firms to establish a Special Reserve Bank Account for the protection of customers.
  3. FINRA can review everything except what during an audit?
    Telephone calls

    Note: text messages are considered public communication
  4. What is NOT a discretionary order from a customer?
    Only allowing RR to choose time and price
  5. Location of convenience vs nonbranch
    • A location of convenience is any location used occasionally and by appointment.
    • Any location used primarily for nonsecurities business and from which fewer than 25 securities transactions are effected annually
  6. What is reclamation?
    • the right to return securities that were accepted and the determined to not be in good form.
    • defaulted bonds can not be reclaimed as it is not a protection against loss.
  7. A broker/dealer selling a block of restricted securities for an insider pursuant to Rule 144 may engage in which activity regarding the sale?
    An exception to the general ban on soliciting for Rule 144 sales for insiders occurs when customers have called indicating interest within the last ten business days or when other broker/dealers have called indicating interest within the last 60 calendar days.