Series 79 topic

Section 4: 100 free Series 79 practice questions

Every question links to a full page with the answer and explanation. When you can answer these cold, drill them under time pressure in the free practice app.

Drill Series 79 free Series 79 exam guide

Under the Securities Exchange Act of 1934, which of the following entities is required to register as a broker-dealer with the SEC?easy
An investment bank is expanding its operations to include municipal advisory services. In addition to its existing broker-dealer…medium
Under FINRA rules, which of the following best describes the obligation of a member firm participating in a public offering?easy
A managing underwriter is structuring compensation for a public offering. Under FINRA Rule 5110, which of the following items of value…medium
What is the primary purpose of information barriers (Chinese walls) within an investment bank?easy
An investment banking analyst working on a confidential M&A transaction overhears a colleague from the equity trading desk discussing a…medium
An investment bank is advising Company A on a hostile takeover bid for Company B. The firm's proprietary trading desk currently holds a…hard
Under SEC Rule 10b-5, which of the following scenarios would most likely constitute insider trading?medium
A senior investment banker at Firm X tells his college roommate about a pending merger involving one of Firm X's clients. The roommate then…hard
Regulation FD (Fair Disclosure) requires that when an issuer discloses material nonpublic information to certain market professionals, it…medium
When the SEC brings a civil enforcement action against an investment banker for securities fraud, which of the following remedies can the…medium
An investment bank fails to maintain adequate information barriers and a proprietary trader profits from MNPI that leaked from the M&A…hard
Which self-regulatory organization (SRO) has primary oversight responsibility for the conduct of broker-dealers and their associated…easy
Under SEC Rules 17a-3 and 17a-4, broker-dealers are required to create and maintain certain books and records. Which of the following must…easy
An investment banking associate uses a personal text messaging application to discuss deal terms with a client, bypassing the firm's…medium
Under FINRA Rule 3110, a broker-dealer must establish a supervisory system including written supervisory procedures. In the context of an…medium
A managing director in the investment banking division is responsible for supervising a team of analysts and associates. One of the…hard
FINRA Rule 4370 requires every member firm to create and maintain a business continuity plan (BCP). Which of the following is a required…easy
Under the Bank Secrecy Act and related regulations, which of the following is a requirement for broker-dealers regarding anti-money…easy
An investment bank is engaged to advise on a leveraged buyout. During due diligence, the deal team discovers that the acquiring entity is a…hard
The Global Research Analyst Settlement of 2003 imposed restrictions on the relationship between investment banking and research departments…hard
The Sarbanes-Oxley Act of 2002 included provisions that directly impact investment banking activities. Which of the following SOX…medium
Which of the following entities is NOT required to register as a broker-dealer under Exchange Act Section 15?easy
An investment bank’s control room is notified of an upcoming M&A deal. Which action best ensures effective implementation of information…medium
If the SEC seeks to prevent an individual from acting as an officer or director of a public company due to securities fraud, what is the…medium
Under Rule 10b-5, which party is most likely to face tipper liability in an insider trading case?medium
A registered representative is found liable for egregious securities fraud. Which scenario most accurately reflects when the SEC might…hard
Which of the following best describes the role of a control room in a large investment bank?medium
Which action is a key component of an effective information barrier in an investment bank?easy
A firm’s watch list is primarily used for which purpose?medium
Under Exchange Act Rules 17a-3 and 17a-4, how long must a broker-dealer retain customer account records after account closure?medium
If the SEC obtains disgorgement of ill-gotten gains from a broker-dealer, what is the most accurate description?medium
Under FINRA rules, which of the following best demonstrates proper escalation of a compliance concern?medium
Under FINRA Rule 5110, what type of compensation must be disclosed and subject to limitations when participating in a public offering?medium
Which of the following is a prohibited practice under the Global Research Analyst Settlement and related FINRA rules?easy
A client wires $12,500 in increments under $10,000 each, with no clear business purpose. What regulatory obligation does this most likely…medium
Which of the following records must be preserved in an easily accessible place for the first two years under SEC rules?easy
If a firm stores its books and records electronically, which of the following is a required condition under SEC Rule 17a-4?easy
Which of the following is an example of material nonpublic information (MNPI)?easy
A branch manager fails to monitor an employee who repeatedly violates firm policy by executing unauthorized trades. What is the manager’s…hard
Under FINRA Rule 4370, which of the following is a required element of a broker-dealer’s business continuity plan?medium
Which of the following practices is specifically prohibited to ensure research analyst independence under FINRA rules?hard
A director of Company X learns of a major development and tips a family member, who trades and then tells a neighbor who also trades. Under…hard
Which of the following must a firm include in its written supervisory procedures (WSPs)?easy
Which of the following statements is TRUE regarding the retention of electronic communications by broker-dealers?medium
A broker-dealer is undergoing an audit and needs to provide original customer account forms. Which format is acceptable under SEC rules?medium
Which of the following would most likely trigger enhanced customer due diligence under AML rules for an investment bank?easy
An investment banking analyst learns about a pending acquisition while working on the deal and shares this information with a friend, who…medium
Under the misappropriation theory of insider trading, which of the following individuals could be held liable?medium
A firm is updating its business continuity plan. Which of the following must the plan specifically address according to FINRA Rule 4370?medium
Which of the following is a potential civil penalty the SEC may impose on individuals violating securities laws?medium
Which of the following is required to ensure research analyst independence under FINRA rules and the Global Settlement?medium
A firm's control room discovers an employee in the equity research department has been repeatedly accessing deal files from investment…hard
If the SEC obtains an injunction against an individual for violating securities laws, what is the immediate effect of this action?easy
Under SEC Rule 17a-4, how long must a broker-dealer retain records relating to communications with customers, such as emails, in an easily…easy
Which of the following must be observed by a research analyst during the quiet period following a public offering?medium
A public company executive unintentionally discloses material nonpublic information during a private call with several analysts. According…medium
Under FINRA rules, which of the following must be disclosed as underwriting compensation in a public offering?easy
A director of a public company routinely shares confidential earnings information with his spouse, who never trades, but the spouse then…hard
Which SEC enforcement remedy can specifically prevent a person from serving as an officer or director of a public company?easy
A hedge fund manager obtains MNPI about a merger from an investment banker at a conference, but the banker did not intend to disclose it.…hard
A managing underwriter receives a right of first refusal to participate in future offerings from an issuer. How must this be treated under…easy
If the SEC brings a civil action and the defendant neither admits nor denies the allegations, which outcome is possible?easy
In a public offering, which of the following would be considered a prohibited conflict of interest under FINRA Rule 5121?medium
A member firm is acting as both book-running manager and significant lender to a public offering issuer. Under FINRA rules, what additional…hard
During customer due diligence for a private placement, an investment bank notes that the client is a beneficial owner of multiple shell…medium
Which of the following is permitted during the quiet period after an IPO?easy
Which of the following would most likely trigger a suspicious activity report (SAR) filing in an investment banking context?medium
When an investment bank places a security on its restricted list, what are its employees generally prohibited from doing?medium
Which of the following is a possible outcome of an SEC administrative proceeding for a registered representative found to have violated…medium
Which of the following is permitted to conduct securities transactions without registering as a broker-dealer under the Exchange Act?easy
A municipal advisor at a registered bank provides advice solely on municipal derivatives, not securities. Which registration is required…medium
Which of the following is a primary function of a control room in an investment bank?easy
A FINRA-member firm discovers that a supervisor failed to escalate a compliance red flag related to insider trading. What is the potential…hard
An investment bank maintains a restricted list and a watch list as part of its information barrier policy. When should a security typically…medium
Which of the following is most likely to trigger a Suspicious Activity Report (SAR) filing by an investment bank under FINRA rules?medium
Who is primarily responsible for preventing the flow of material nonpublic information between an investment bank’s advisory and sales &…easy
During an annual compliance review, which of the following topics must be addressed for all investment banking personnel?medium
Under FINRA Rule 4370, which of the following elements must be specifically addressed in a member firm's business continuity plan (BCP)?medium
Which of the following is essential for a successful 'wall-crossing' process in a public-to-private transaction?medium
If the SEC finds that a registered representative has violated antifraud provisions, which of the following is a discretionary civil remedy…medium
Under FINRA Rule 5110, which of the following is considered underwriting compensation and must be disclosed in connection with a public…easy
A foreign bank’s U.S. branch provides advice incidental to securities transactions solely for existing commercial banking clients, does not…hard
Which of the following is NOT considered an associated person of a broker-dealer for the purposes of Exchange Act Section 15 registration?medium
A private placement client is structured with multiple layers of ownership, including offshore shell companies and nominee directors. Which…hard
Which of the following is required to ensure research analyst independence under FINRA rules?medium
Under Regulation FD, when must a public company disclose material nonpublic information that was inadvertently disclosed to a select group…medium
Which of the following scenarios could expose both the tipper and the tippee to liability under Rule 10b-5?hard
For how long must a broker-dealer retain records of customer complaints according to SEC Rule 17a-4?easy
Which of the following is permitted with respect to analyst compensation under FINRA rules and the Global Research Analyst Settlement?medium
Which of the following is a key requirement under FINRA Rule 5130 for underwriters in a new issue of equity securities?easy
If the SEC imposes a bar on a registered representative, which of the following is a possible effect?easy
A bank wants to engage in municipal securities activities, advising municipalities on bond issuances. What additional registration is…medium
A firm’s written supervisory procedures require escalation of suspected manipulation to the compliance department. A supervisor becomes…hard
During an annual review, a compliance officer finds that a branch manager failed to correct repeated policy violations. What is the most…hard
Which of the following best describes the purpose of Customer Identification Program (CIP) procedures in an investment banking context?medium
Under the misappropriation theory of insider trading, which of the following individuals could be liable for insider trading?medium
A registered representative is found to have committed securities fraud and is ordered by a federal court to disgorge $850,000 in…medium
Which of the following activities requires an institution to register as a broker-dealer under the Securities Exchange Act of 1934?easy
An investment bank's control room adds a company to its restricted list after learning of a potential merger. Which of the following best…medium