Security Test Chapter 2

The ___________is the SRO for the OTC market.

True or False: Rule violations are handled by the Code of Arbitration.

• True

• False. Rule violations are covered by the Code of Procedure.

True or False: SIPC provides coverage for both commodities and futures accounts.

• TRUE

• FALSE

True or False: Decisions arising from arbitration may be appealed to the federal court system.

• True

• False. Decisions are binding on both parties and may NOT be appealed.

SIPC provides coverage of $___________ of which no more than $ ______________ can be cash.

The _____________________covers disciplinary actions by FINRA against member firms and their employees.

True or False: A penny stock has a bid price of less than $1.00 per share?

• True

• False. A penny stock is an unlisted security whose bid price is less than $5.00 per share.

Industry disputes are handled through_______________________.

The IC Act of '40 requires a fund with more than _____ shareholders to register with the SEC.

The Securities Act of 1933 regulates ______________.