Chapter 16

No Fooling Around: Rules and Regulations


Bullet Meeting the self-regulatory organizations

Bullet Opening and handling customer accounts

Bullet Playing by the rules

First off, I’d like to apologize for having to include this chapter. Unfortunately, rules are a part of life and part of the Series 7. When you’re reading this, please remember that I didn’t make the rules — but I do my best to make them as easy to digest as possible. Fortunately, some of them will look familiar if you've recently taken the Securities Industry Essentials exam. Rules have become increasingly important on the Series 7 exam, especially since the Patriot Act came into the picture.

In this chapter, I cover topics related to rules and regulations. First, I help you understand who the guardians of the market are and their roles in protecting customers and enforcing rules. I also place considerable emphasis on opening, closing, transferring, and handling customers’ accounts. And of course, I provide practice questions and the “Committing Other Important Rules to Memory” section to guide you on your way.

The Market Watchdogs: Securities Regulatory Organizations

To keep the market running smoothly and to make ...

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