Series 24 Exam 2026 | General Securities Principal
Practice Questions & Verified Answers | FINRA
Certification Prep
If a Broker/Dealer receives currency over $10,000 from a customer, which of the following is
true?
[A] The currency must be deposited into a bank account within one business day.
[B] A Currency Transaction Report (CTR) must be filed by the Broker/Dealer.
[C] A Suspicious Activity Report must be filed by the Broker/Dealer.
[D] None of the above. - Precise Answer ✔✔[A] Currency Transaction Report (CTR) must be
filed by the Broker/Dealer. When a broker/dealer receives currency, which exceeds $10,000 in
value a Currency Transaction Report (CTR), must be filed by the Broker/Dealer.
If an underwriter were to peg the market price of a security to the public offering price, he
would be:
I.Violating the anti-fraud provisions of the Securities Act of 1933.
II. Violating the anti-fraud provisions of the Securities Exchange Act of 1934.
III. "Stabilizing" the issue - a bona fide practice. - Precise Answer ✔✔[B] III
"Pegging" is another term used to describe Stabilization, which is allowed during the
underwriting period of a new issue.
When a market maker is going to display a quote, the market maker must have any of the
following on file EXCEPT
[A] Current SEC filings
[B] Prospectus
[C] Form F-6 ADR
[D] Reg A offering circular for such offering - Precise Answer ✔✔[C] Form F-6 ADR
From F-6 is used for the registration of American Depository Receipts and market makers are
not required to maintain copies of the form.
All of the following would be considered an investment "recommendation" under FINRA Rule
2111 on Suitability EXCEPT:
[A] An explicit "hold" recommendation
[B] An implicit "hold" recommendation by remaining silent about existing positions
[C] The use or distribution of marketing or offering materials with explicit recommendations
[D] Brokers who execute trades on behalf of a customer without informing the customer -
Precise Answer ✔✔[B] An implicit "hold" recommendation by remaining silent about existing
positions
A "recommendation" generally involves a "call to action". A "hold" recommendation must be
explicit (not implied) to be considered a "recommendation".
,A FINRA member firm accepts a limit order from a customer to buy 100 shares of ABC at 27. A
trade is reported on the Consolidated Tape at 27. Which of the following can the member firm
do before executing the customer's order?
[A] Buy 100 shares of ABC at 27 for its inventory account.
[B] Buy 100 shares of ABC at 27 for its investment account
[C] Buy 100 shares of ABC at 27 for another customer
[D] None of the above - Precise Answer ✔✔[C] Buy 100 shares of ABC at 27 for another
customer
A member cannot execute orders for its own account ahead of customer orders. However,
orders for other customers can be executed.
FINRA Rules on the distribution of a new issue must be observed by all of the following
EXCEPT:
[A] the managing underwriter
[B] a member of the underwriting syndicate other than the managing underwriter.
[C] a member of the underwriting group
[D] the issuer - Precise Answer ✔✔[D] the issuer
FINRA rules apply to all FINRA member firms participating in a securities offering. Managing
underwriters, syndicate members and selling group members all must be members of FINRA.
An issuer is not a broker dealer and is not a member of FINRA.
Recordkeeping of a member firm's written supervisory procedures that have been terminated or
revised must be maintained
[A] at least six years since last use.
[B] for the life of the member firm.
[C] at least three years since last use.
[D] at least two years since last use. - Precise Answer ✔✔[C] at least three years since last use.
FINRA rules require that WSPs that have been updated or terminated must be maintained for at
least three years since their last use.
Under SEC Rule 144, Form 144 Notice of Sale is effective for
[A] 2 business days
[B] 4 business days
[C] 30 calendar days
[D] 90 calendar days - Precise Answer ✔✔[D] 90 calendar days
Form 144 Notice of Sale is effective for 90 calendar days.
A company announces a tender offer and wants to buy back some of its own stock. An investor
, feels that the tender offer price has been set too high and that once completed the market
price of the stock will decline. He tells his RR to short the stock now and then he will buy to
cover the short when the tender is completed. What action should the RR tell the customer?
[A] This transaction must be done in a margin account and a deposit will be required on the
short sale.
[B] This transaction cannot be completed since you cannot borrow stock in order to participate
in a tender offer.
[C] This transaction can only be completed after the stock has been borrowed due to the SHO
regulations.
[D] This transaction is allowed and may be executed immediately. - Precise Answer ✔✔[C] This
transaction can only be completed after the stock has been borrowed due to the SHO
regulations.
Since the customer is not using the borrowed stock to participate in the tender, they would able
to short. Many people choose "B" because you understand the concept of only being able to
participate in a tender if you have a net long position and that is true BUT in this question the
customer is NOT going to participate, but simply feels the stock price will go down due to the
tender and wants to take advantage of that in the market place!
When must a BD provide a customer with a copy of the customer's account record information?
[A] Within 30 days of opening a new account and no less than every 12 months thereafter
[B] Within 30 days of opening a new account and no less than every 36 months thereafter
[C] Within 45 days of opening a new account
[D] Within 45 days of opening a new account and no less than every 36 months thereafter -
Precise Answer ✔✔[B] Within 30 days of opening a new account and no less than every 36
months thereafter
The SEC Regulation on Books and Records (17a-3(a)(17) specifies what records must be
retained by BDs and when the customer account record information must be provided to
customers. The BD must provide the account record information within 30 days of opening a
new account and no less than every 36 months thereafter.
According to SEC rules, broker-dealers must make available a statistical summary of their order
routing of non-directed orders at least
[A] annually.
[B] daily.
[C] quarterly.
[D] monthly. - Precise Answer ✔✔[C] quarterly.
SEC Rule 606 of Reg NMS requires that statistical summaries of order routing of non-directed
orders must be published by broker-dealers at least quarterly.
A long time growth fund investor is now approaching retirement. He wants to liquidate the
Practice Questions & Verified Answers | FINRA
Certification Prep
If a Broker/Dealer receives currency over $10,000 from a customer, which of the following is
true?
[A] The currency must be deposited into a bank account within one business day.
[B] A Currency Transaction Report (CTR) must be filed by the Broker/Dealer.
[C] A Suspicious Activity Report must be filed by the Broker/Dealer.
[D] None of the above. - Precise Answer ✔✔[A] Currency Transaction Report (CTR) must be
filed by the Broker/Dealer. When a broker/dealer receives currency, which exceeds $10,000 in
value a Currency Transaction Report (CTR), must be filed by the Broker/Dealer.
If an underwriter were to peg the market price of a security to the public offering price, he
would be:
I.Violating the anti-fraud provisions of the Securities Act of 1933.
II. Violating the anti-fraud provisions of the Securities Exchange Act of 1934.
III. "Stabilizing" the issue - a bona fide practice. - Precise Answer ✔✔[B] III
"Pegging" is another term used to describe Stabilization, which is allowed during the
underwriting period of a new issue.
When a market maker is going to display a quote, the market maker must have any of the
following on file EXCEPT
[A] Current SEC filings
[B] Prospectus
[C] Form F-6 ADR
[D] Reg A offering circular for such offering - Precise Answer ✔✔[C] Form F-6 ADR
From F-6 is used for the registration of American Depository Receipts and market makers are
not required to maintain copies of the form.
All of the following would be considered an investment "recommendation" under FINRA Rule
2111 on Suitability EXCEPT:
[A] An explicit "hold" recommendation
[B] An implicit "hold" recommendation by remaining silent about existing positions
[C] The use or distribution of marketing or offering materials with explicit recommendations
[D] Brokers who execute trades on behalf of a customer without informing the customer -
Precise Answer ✔✔[B] An implicit "hold" recommendation by remaining silent about existing
positions
A "recommendation" generally involves a "call to action". A "hold" recommendation must be
explicit (not implied) to be considered a "recommendation".
,A FINRA member firm accepts a limit order from a customer to buy 100 shares of ABC at 27. A
trade is reported on the Consolidated Tape at 27. Which of the following can the member firm
do before executing the customer's order?
[A] Buy 100 shares of ABC at 27 for its inventory account.
[B] Buy 100 shares of ABC at 27 for its investment account
[C] Buy 100 shares of ABC at 27 for another customer
[D] None of the above - Precise Answer ✔✔[C] Buy 100 shares of ABC at 27 for another
customer
A member cannot execute orders for its own account ahead of customer orders. However,
orders for other customers can be executed.
FINRA Rules on the distribution of a new issue must be observed by all of the following
EXCEPT:
[A] the managing underwriter
[B] a member of the underwriting syndicate other than the managing underwriter.
[C] a member of the underwriting group
[D] the issuer - Precise Answer ✔✔[D] the issuer
FINRA rules apply to all FINRA member firms participating in a securities offering. Managing
underwriters, syndicate members and selling group members all must be members of FINRA.
An issuer is not a broker dealer and is not a member of FINRA.
Recordkeeping of a member firm's written supervisory procedures that have been terminated or
revised must be maintained
[A] at least six years since last use.
[B] for the life of the member firm.
[C] at least three years since last use.
[D] at least two years since last use. - Precise Answer ✔✔[C] at least three years since last use.
FINRA rules require that WSPs that have been updated or terminated must be maintained for at
least three years since their last use.
Under SEC Rule 144, Form 144 Notice of Sale is effective for
[A] 2 business days
[B] 4 business days
[C] 30 calendar days
[D] 90 calendar days - Precise Answer ✔✔[D] 90 calendar days
Form 144 Notice of Sale is effective for 90 calendar days.
A company announces a tender offer and wants to buy back some of its own stock. An investor
, feels that the tender offer price has been set too high and that once completed the market
price of the stock will decline. He tells his RR to short the stock now and then he will buy to
cover the short when the tender is completed. What action should the RR tell the customer?
[A] This transaction must be done in a margin account and a deposit will be required on the
short sale.
[B] This transaction cannot be completed since you cannot borrow stock in order to participate
in a tender offer.
[C] This transaction can only be completed after the stock has been borrowed due to the SHO
regulations.
[D] This transaction is allowed and may be executed immediately. - Precise Answer ✔✔[C] This
transaction can only be completed after the stock has been borrowed due to the SHO
regulations.
Since the customer is not using the borrowed stock to participate in the tender, they would able
to short. Many people choose "B" because you understand the concept of only being able to
participate in a tender if you have a net long position and that is true BUT in this question the
customer is NOT going to participate, but simply feels the stock price will go down due to the
tender and wants to take advantage of that in the market place!
When must a BD provide a customer with a copy of the customer's account record information?
[A] Within 30 days of opening a new account and no less than every 12 months thereafter
[B] Within 30 days of opening a new account and no less than every 36 months thereafter
[C] Within 45 days of opening a new account
[D] Within 45 days of opening a new account and no less than every 36 months thereafter -
Precise Answer ✔✔[B] Within 30 days of opening a new account and no less than every 36
months thereafter
The SEC Regulation on Books and Records (17a-3(a)(17) specifies what records must be
retained by BDs and when the customer account record information must be provided to
customers. The BD must provide the account record information within 30 days of opening a
new account and no less than every 36 months thereafter.
According to SEC rules, broker-dealers must make available a statistical summary of their order
routing of non-directed orders at least
[A] annually.
[B] daily.
[C] quarterly.
[D] monthly. - Precise Answer ✔✔[C] quarterly.
SEC Rule 606 of Reg NMS requires that statistical summaries of order routing of non-directed
orders must be published by broker-dealers at least quarterly.
A long time growth fund investor is now approaching retirement. He wants to liquidate the
