Question

Which statement is TRUE?

1. FINRA is a government body in charge of regulating the financial industry.
2. The Securities and Exchange Act of 1933 focuses on the trading of securities after they are issued and is sometimes known as the People Act
3. The ‘red-herring’ prospectus includes the offering price of the security
4. Either all of the above are true or none of the above are true

. Which statement is TRUE?

1. You must pass the Series 6 or 7 exam before you can be sponsored by a FINRA member firm.
2. A U4 form must be submitted to FINRA for each registered representative
3. The Series 7 remains active for up to five years if a representative leaves the firm
4. Either all of the above are true or none of the above are true

Answer 1

1. Option D is the correct answer. None of the above is true because:

(FINRA) is a private corporation that acts as a self-regulatory organization (SRO). ... It is a non-governmental organization that regulates member brokerage firms and exchange markets.

It is the act of 1934 which focuses on the trading of securities after they are issued and is sometimes known as the People Act.

A red herring prospectus is issued to potential investors, but does not have complete particulars on the price of the securities offered and quantum of securities to be issued.

2. Option B is the correct answer whereas the rest are false statements.