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 12 Fixed-Price Offerings: Fixed-Price Offerings No FINA member firm that is participating in a fixed-price offering is allowed to sell the securities to anyone else at a discount from this fixed price. You cannot offer other services at a reduced price in exchange for the purchase of these securities as well. This applies to
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 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 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 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
Lesson 14 The Securities and Exchange Act of 1934: The Securities and Exchange Act of 1934 was a law that came in response to the Stock Market crash of 1929. It regulates the secondary market that deals in transactions between investors, instead of the primary market, which is companies to investors. This is sometimes known
Lesson 15 Disciplinary Actions: Disciplinary Actions Any action taken against a FINRA member by the SEC, an exchange, a state regulator, a clearing firm or other regulatory body must be reported to FINRA as soon as possible. Customer complaints of fraud or misrepresentation must also be taken seriously and reported immediately, which means within 10
