Investment Jobs Securities Licensing Test 3

Question 1

Which organization regulates futures and commodity trading in the United States?

Accepted Answer

CFTC

Answer

FINRA

Answer

SEC

Answer

OCC

Question 2

To trade futures contracts professionally, which license is typically required?

Accepted Answer

Series 3

Answer

Series 7

Answer

Series 34

Answer

Series 52

Question 3

What is the purpose of the 'know your customer' (KYC) rule in securities regulation?

Accepted Answer

To ensure representatives understand client financial situations before making recommendations

Answer

To verify a client's identity for anti-money laundering purposes only

Answer

To disclose all fees associated with investment products

Answer

To limit trading activity in volatile markets

Question 4

Under SEC rules, which form must be provided to retail investors by investment advisers to disclose services, fees, and conflicts?

Accepted Answer

Form ADV Part 2

Answer

Form BD

Answer

Form U4

Answer

Form 10-K

Question 5

What is a 'churning' violation in securities regulation?

Accepted Answer

Excessive trading in a client's account to generate commissions

Answer

Selling securities at a loss for tax purposes

Answer

Unauthorized trading in a customer account

Answer

Front-running client orders with proprietary trades

Question 6

Which act governs the registration of securities offerings and requires a prospectus for new issues?

Accepted Answer

Securities Act of 1933

Answer

Securities Exchange Act of 1934

Answer

Investment Advisers Act of 1940

Answer

Investment Company Act of 1940