Lesson 3: Essential Vocabulary, Part II Person When talking about investing, this is any entity that can form a legally-binding contract (they are of age and of sound mind), and they are allowed to do business in the securities market. These do not only have to be an individual, but can be a partnership, a
Lesson 2: Essential Vocabulary, Part I Direct Participation Program (DPP) Sometimes this is just referred to as a “program”. It offers the entire process through economic events and tax burdens. It can be set up in different ways, such as a limited partnership, a limited liability company (LLC) or an S corporation. They can
Lesson 1: Introduction to the FINRA Series 22 Exam What is the FINRA Series 22 Exam? FINRA = Financial Industry Regulatory Authority, Inc. It is the self-regulating body for setting standards and regulation for financial professionals. The FINRA Series 22 exam is an essential part of becoming a successful financial professional. You will be able
This is the first in a series of podcast to help you prepare for the FINRA Series 22 Exam the Direct Participation Programs Limited Representative Exam The full series of Series 22 Audio Lessons is available below
Lesson 20 Margin accounts: Margin accounts allow investors to buy securities without having to pay for them in full. They have to put a certain portion of the price down, called the margin, and then they can borrow from the broker-dealer. The size of the margin is set down by Regulation T by the Federal
Lesson 19 Types of Accounts: Types of Accounts An individual account account is one that is owned by a single person. Only he or she can determine which securities are bought or sold and they get all the proceeds from the account. A joint account is owned by two or more people. Any of the
Lesson 18 New Account Regulations: FinCEN is a part of the U.S. Department of the Treasury and it seeks to safeguard the nation’s financial system. They send blacklist to FINRA member firms every few weeks and the principal must check these lists against their client base within 14 days and report. After the attacks on
Lesson 17 Securities Investor Protection Corporation (SIPC): The Securities Investor Protection Corporation (SIPC) is a corporation sponsored by the governments that protects customers when a broker-dealer fails them. All broker-dealers registered with the SEC must also be SIPC members and pay annual dues to them as a way to fund insurance for people harmed by
Lesson 16 Registered Representative Criteria: In order to become a registered representative you must meet the four criteria: you have to be trained, you have to be competent, you have to have experience, and you have to be of a good moral character. If you are deficient in one or more of these areas, you
Lesson 11 DPP Offerings: The SEC and FINRA have different rules about how limited partnerships are distributed. They can be directly distributed by a sponsor, through a sponsor managed offering, or through a broker-dealer. In the final case, the broker-dealer will enter into a distribution agreement with the sponsor and then they have to make
