Term
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Definition
| Application filed by all registered individuals under SRO rules and reviewed by Central Registration Depository. |
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Term
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Definition
| required for people who engage in sale of security, access to security and handle or process securities |
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Term
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Definition
Notification of termination should be given to employer within 2 days or 2 days of receipt of U5
Send notification to FINRA within 30 days
Updated if information changes
New employer must request U5 within 60 days of filing for registration (rule 3010e) |
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Term
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Definition
For people advising on debt, equity securities or mergers and acquisitions; not for public offerings.
Must wait 30 days for 2nd and 3rd time and 180 days for 4th time.
Must attend an annual compliance meeting with documentation |
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Term
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Definition
Wash sale- purchase/sell securities without beneficial change of ownership (painting the tape
Matched order - when two people buy/sell to raise price
Governed by SEAct of '34
Cannot publish rumors unless stated that rumors are unsubstantiated
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Term
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Definition
| Filed when stock repurchase caused it to be held by less than 300 owners or become delisted |
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Term
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Definition
| Safe Harbors for stock buybacks: 1 broker dealer, cannot purchase 1st transaction of day or last 10 mins (30 min not actively traded), not higher than highest independant bid, 25% of ADTV, 1 Block purchase (200K or more, 5,000 shares w/ price of 50K, 20 round lots that total 150% of ADTV) |
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Term
| Rule 77: Members on the floor |
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Definition
CANT buy/sell:
on stop, at the close of market, dividend, privileges, on course of market |
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Term
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Definition
unlawful to defraud, make untrue statements, act in a fraud
create information barriers
establish procedures to monitor employees trading accounts
Restricted and watch lists - for companies that engage in investment banking, research or arbitrage activities and includes securities that are restricted from being traded
any investigation must be submitted to SRO within 1 week after completion and a written statement by 15th day of the month in following quarter |
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Term
| Office of Supervisory Jurisdiction |
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Definition
| Must appoint a principal to supervise activity |
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Term
| Currency Transaction Reports |
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Definition
| Filed for any transactions in cash greater than 10k in 1 day |
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Term
| Suspicious Activity Reports (FinCEN 101) |
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Definition
| Transaction greater than 5K and involved suspicious activity filed within 30 days of incident |
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Term
| Transaction in accounts of other member firms |
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Definition
Must :
notify employer in writing of intention to open an account, send duplicate confirmations, notify person opening account of procedures
also must notify employer of outside business and part time jobs
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Term
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Definition
private securities transactions outside regular scope of employment
must be approved by member firm in writing if compensation is received
cannot guarantee against losses
$100 max gift to member firm employee |
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Term
| Appeal process for resolving problem |
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Definition
| Hearing panel-->National Adjudicatory Panel--> SEC--> Fed Court |
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