Sign New York Banking IOU Secure

Industry sign banking new york iou secure

hello my name is Jeremy Solomon my company Solomon exam prep has helped thousands pass their securities licensing exams like the series 7 series 65 series 63 series 24 and series 79 I'm here today to speak about the seismic change that FINRA and the securities industry launched this month October 2018 I believe this is useful information to college and graduate students who may be interested in working in the securities industry or in FinTech at companies such as square or PayPal what is a security well I'm not gonna make you wait too long a security the Supreme Court has said is defined as any contract with or investment in a for-profit enterprise that depends on the efforts of others to succeed so let's repeat that the Supreme Court in their Howey decision has defined a security as any contract with or investment in a for-profit enterprise that depends on the efforts of others to succeed now in terms of actual assets financially this includes stocks or any equity ownership in a business bonds or any IOU like a bond mutual funds ETFs exchange traded funds a DRS which are foreign securities variable annuities even perhaps cryptic cryptocurrency although that's not completely settled yet if there's a guarantee such as an FDIC insured bank deposit then it's probably not security what that means is a defining characteristic of a security is that it isn't it is an investment in or financial contract that is insecure so what well this definition of security tells us something very important that the risk in the securities industry is so big that the industry is heavily regulated at the federal and state levels in the US one of the main ways that securities industry risk is regulated and managed is by requiring individuals who work in the industry to pass demanding knowledge based exams that test an understanding of the products the markets and the rules and regulations these are called series exams and they're generally followed by a number so series six series seven series 65 etc before October 1st 2018 you had to be employed by registered broker-dealer and then that broker dealer had to sponsor you that meant the employer the broker dealer had to fill out a 40 page form called a u4 which is essentially a huge background check and file it with FINRA and get it approved before you the individual could sit for a securities licensing exam also you had to get fingerprinted for firms for broker dealers this meant cost and liability because a registered person is someone they are liable for to FINRA and ultimately to the SEC the effect is or has been that the securities industry was challenged because it felt that not enough young people were entering the industry the firms felt that the barrier to entry to employment was too high this resulted in FINRA restructuring its exam system and creating a new exam called the SI e and this was in an effort to open the industry up to more people especially young people so FINRA split all entry level exams the series 6 the series 7 the series 79 etc and took out the basic or essential information and created a new foundational exam this is the securities industry essentials SAE exam and from now on you need to have the sae in order to get licensed the big changes with the SI include there is no employment or sponsorship requirement no filing of a u4 is wired no background check no fingerprint requirement you just need to be 18 years old anyone who learns the material can take the SAT exam however the SAT doesn't actually license you to do anything so why take it well aside from the fact that the information on the essay is useful to know even if you don't work in the securities industry employers are telling us solid exam prep that they are looking for it on job applicants resumes and so it's kind of a pre qualifier it's definitely an advantage of your if you're looking for a job in the securities industry to already have the sae exam under your belt who are these employers well the following is a short list of some of the employers who use Salomon exam prep Janice Henderson ing Raymond James PNC boya Pro funds proShares Allstate USAA whilst Fargo Harris Williams principal financial MassMutual Invesco Green Hill Prudential u.s. bank LPL emeritus New York Life George K Bomb PwC Waddell and Reed seedinvest T rowe Price Lincoln investment Ares management TIAA Piper Jaffray etc so many many employers are going to be using the sae some details about the sae it's a total of 85 multiple-choice questions 75 which of which are scored 10 are unscored and those are random we don't know you don't know which are the unscored ones they're questions that FINRA is trying out it's a hundred and five minutes long 70% is the passing score the price the cost with with Prometric is 60 bucks the exam is good for four years topics include equity securities debt securities investment companies life insurance products packaged securities options and alternative investments risks disclosure and Taxation issuing securities the primary market the securities markets customer accounts prohibited activities and conduct rules and regulatory responsibilities those are the broad topics here are a few practice questions from the Solomon exam exam prep database just to give you an idea of what the exam questions might be like a customer's margin account has a debit balance of $7,500 what is the greatest value of securities that may be rehypothecation a $0 be thirty seven hundred and fifty dollars C ten thousand five hundred dollars and D $15,000 and C ten thousand five hundred dollars was the correct answer hypothec a ssin is when a customer opens a margin account and pledges the margin securities as collateral for margin loans from the broker dealer rehypothecation occurs when the firm the broker dealer uses the customers margin securities as collateral for additional borrowing on its own account the maximum amount that may be re hypothecated from a customer's account is a hundred and forty percent of the debit balance a hundred and forty percent of $7,500 is $10,000 ten thousand five hundred dollars what is the holding period for restricted securities issued by a company that does not file reports with the SEC a three months the six months C nine months and D twelve months and the correct answer is d twelve months rule 144 requires purchasers of restricted securities to hold them for a certain amount of time before they sell them if the issuer is a company that files reports with the SEC the holding period is six months if the issuer is a non reporting company the holding period is twelve months Joe a savvy investor has his eye on the rapid rise of XYZ Corp stock analysts predict that XYZ Corp will continue to go up in price but Joe is convinced that it will decline in value soon which of the following should Joe buy if he follows his convictions a a put option B a call option C common stock D rights and the correct answer is a put option put options are the only kind of investment from the above list that go up in value when the price of the underlying asset goes down a put option is the right to sell an asset at an agreed upon price called the strike price if the market price declines below the strike price the buyer of the put option can sell the asset at the strike price profiting from the difference between the higher strike price and the lower market price since Joe believes the stock price is likely to go down soon he should buy a put option on XYZ Corpse errors which of the following is true when the economy is considered to be in a depression a it has been in a crack it has been in a contraction phase for at least the past six quarters B it is in an extended trough phase of a business cycle C it is ready to begin an expansion phase and D unemployment is at its lowest point of the business cycle and remember the question is which of the following is true when the economy is considered to be in a depression and the correct answer is a it has been in a contraction phase for at least the past six quarters a depression is defined as a contraction phase that has lasted for at least six quarters or 18 months just because the economy's and depression does not necessarily mean that the trough phase of a business cycle is at hand the trough phase is where the is the point where the contraction phase ends in the expansion phase begins additionally keep in mind that an economic depression is no guarantee that key economic factors such as unemployment cannot get worse only when a period of expansion begins can investors be confident that such is the case on a secure line Ellen called a broker dealer from her nuclear bunker she's not crazy about giving out information but she would like to open an account which of the following is not required to open a new account a full name B date of birth C social security number or tax ID number and D the customers signature and again the question which of the following is not required to open a new account gotta always reread the question to make sure you understand what they want to know and the correct answer is d the customers signature the customer signature is not required on the new account form according to the Patriot Act the full name date of birth and social security number or tax ID number is required to open an account if the social security number has been applied for but not yet received the firm may open the account but it must obtain the social security number in a reasonable timeframe which of the following results in the largest monthly annuity payment a unit refund life annuity B life only see life with period certain and D joint and last survivor and the correct answer is B life only a life only payout will be the largest since it is only since it is the only option to payout on one individuals life all the other option choices include payment options beyond the life of the annuitant I think this is the last question Julian is an MFP at dealer X a municipal securities dealer excuse me Julian is an MFP at dealer X a municipal securities dealer he contributes two hundred and twenty-five dollars to the re-election campaign of a blue county official who is able to direct business toward Municipal Securities Dealers since he lives just across the river in Greene County Julian is unable to vote in the election which of the following is true of Julian's contribution a since it is for less than 250 dollars it will trigger a ban on doing business with municipal entities under the officials control B since it is for under two hundred and fifty dollars it will not result in a ban on business with any municipal entities C since Julian was unable to vote in the election it will trigger a ban on doing business with municipal entities under the officials control and D it will only trigger a ban on doing business with municipal entities under the officials control if the official wins the election and the correct answer is C since Julian was unable to vote in the election it will trigger a ban on doing business with municipal entities under the officials control msrb rule g37 also known as the pay-to-play rule prohibits municipal securities dealers from engaging in certain types of business with a municipality if they have made political contributions to an official of that municipality however the rule comes with an exception that allows mfps that has municipal finance professionals who are allowed to vote in an election to contribute up to two hundred and fifty dollars without triggering the ban but since Julian is unable to vote on you in the election in this example his contribution does not meet the de minimis requirement additionally whether an initially excuse me whether an official is elected as a result of a campaign for which contributions were made is irrelevant for the purposes of the pay-to-play rule so those are sample questions from the Solomon exam prep database of sae questions gives you a bit of an idea of what kind of material will be covered thank you for listening