SEC, FINRA, MSRB roles, customer accounts, order handling and securities industry rules.
40 cards · basic cards · AI-written, checked twice. Edit anything.
- What is the SEC's primary responsibility?
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To regulate the securities industry and protect investors from fraud- Under which act does the SEC regulate the issuance of new securities?
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The Securities Act of 1933- Under which act does the SEC regulate trading and broker-dealers?
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The Securities Exchange Act of 1934- What is FINRA?
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The Financial Industry Regulatory Authority, the largest self-regulatory organization for broker-dealers- What types of firms must be FINRA members?
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Broker-dealers that engage in securities trading- What is the MSRB?
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The Municipal Securities Rulemaking Board, which creates rules for municipal securities traders and brokers- Who must follow MSRB rules?
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Banks and broker-dealers that trade municipal securities- What is SIPC?
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The Securities Investor Protection Corporation, which protects customer accounts up to 500,000 dollars if a broker-dealer fails- What is a self-regulatory organization (SRO)?
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A non-governmental organization authorized by the SEC to create and enforce industry rules- What is a cash account?
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An account where the customer must pay in full for any purchases before settlement- What is a margin account?
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An account where a customer may borrow money from the broker-dealer to purchase securities- What must a customer sign to open a margin account?
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A margin agreement authorizing the broker-dealer to lend money and securities- What is the minimum account size to open a margin account?
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2,000 dollars- What is a pattern day trader?
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A customer who executes four or more day trades in a five-day period- What is the minimum account value required for a pattern day trader?
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25,000 dollars
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