Finra Sie (Week One)

What does FINRA stand for?

• Financial Network Regulatory Agency

• -Federal Investment Regulation Authority

• Financial Industry Regulatory Authority

• Finance National Reporting Association

How does the SEC relate to FINRA?

• The SEC manages all broker-dealer regulations directly.

• The SEC delegates regulatory responsibilities to FINRA.

• FINRA reports directly to the Federal Reserve, not the SEC.

• The SEC only oversees stock exchanges, not FINRA.

What entities are regulated by FINRA?

• All public corporations

• Banks and insurance companies

• Broker-dealers and registered representatives

• Mutual funds and pension plans

What is the definition of a security?

• An investment that can only be bought and sold by the government.

• An investment that can be bought, sold, or gifted.

• A contract between two corporations.

• A financial product that only generates interest.

Which of the following is NOT a type of security?

• Bonds

• Real Estate

• Common Stock

• Cryptocurrency

How does real estate generate income?

• Through interest payments

• By dividends issued by the government

• By renting or leasing properties

• By issuing bonds to tenants

What does principal preservation focus on?

• Maximizing returns through high-risk investments

• Protecting the initial investment

• Buying and selling assets frequently

• Investing in cryptocurrency for high returns

What is capital appreciation?

• The act of buying low and selling high to increase an investment’s value

• The depreciation of asset value over time

• The interest earned from a savings account

• The profit made from selling an asset at a higher price

What are capital gains?

• Profits from selling an investment at a higher price than it was purchased

• Interest earned from government bonds

• Dividends paid to shareholders

• Losses from selling an investment at a lower price than it was purchased

What is an IPO

• Initial Public Offering

• Investment Portfolio Opportunity

• Internal Payment Option

• Individual Public Order