Offering of Securities by FINRA Members When a FINRA member firm wishes to raise money by offering securities for sale to investors special rules apply to the offering. When a FINRA member firm goes public it may not underwrite its own securities. The member wishing to go public must engage the services of a qualified […]
The SEC enacted the use of a Limit UP Limit Down (LULD) rule. This rule is designed to ensure that prices of individual securities reflect fundamental prices based on supply and demand and do not move outside of established parameters based on errors or manipulative actions. Upper and lower trading bands will be established based […]
Here are some of the key points that you need to know about market maker registration and responsibility to help you pass you series 24 exam. All broker dealers that wish to register as a market maker must file an application with FINRA and demonstrate that they are in good standing with FINRA and that […]
Here is some great information on dividend valuation models and statistical analysis to help you pass your series 65 exam Dividend Valuation models A fundamental analysts may use a dividend valuation model to determine a fair valuation for an equity security and to determine if an investment is warranted The two dividend valuation models most […]
Here is what you need to know about TIPS, Eurobonds and credit default swaps or CDS to pass your FINRA Exams Treasury Inflation Protected Securities or TIPS are direct obligations that are designed to protect investors from the negative impact of inflation. A conservative investor purchases a TIP with a coupon rate of 4 percent. […]
Here is some great information on how trusts may be tested on your series 65 exam. Trusts may be revocable or irrevocable. With a revocable trust, the individual who established the trust and contributes assets to the trust, known as the grantor or settlor , may, as the name suggests, revoke the trust and take […]
Crowdfunding has become a popular way for issuers to raise capital from small investors. Issuers may offer securities to investors for purchase through a broker dealer or through a registered crowdfunding portal. The portal must be registered with the SEC and must also be a FINRA member firm. Issuers who raise capital through crowdfunding may […]
Here are some great series 3 test tips to master for your series 3 exam. Students need to master the economic factors that can impact the prices of commodities one of the important factors is supply and demand elasticity. The supply and demand for any given commodity may be elastic or inelastic based on changes […]
A very important test topic to master for you upcoming series 65 exam is what appears on Form ADV and how its various parts are used. An investment adviser will begin its formal registration process by filling out Form ADV. The ADV form will provide detailed information regarding the investment adviser and it is comprised […]
As many series 24 test takers know, the exam will challenge you to master the supervision of trading and market making down to the smallest detail. Here is some great information on direct market access and rogue trading prvention to help you on this difficult section. This information is taken right from our series 24 […]
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