For which of the following is a company NOT required to notify FINRA?

Prepare for the FINRA Investment Banking Representative Exam with flashcards and multiple-choice questions, each offering hints and explanations. Boost your confidence for success!

The company is not required to notify FINRA regarding control securities because control securities are those owned by executive officers, directors, or persons who own 10% or more of a company's equity. The trading of control securities is subject to specific regulatory considerations that differ from those applied to other types of securities. The requirement to notify FINRA is primarily focused on those securities that are more actively traded or have certain thresholds regarding liquidity and shareholder equity.

In contrast, actively traded securities have thresholds and liquidity requirements that are designed for monitoring by FINRA. Additionally, securities with an average daily trading volume (ADTV) of $100,000 or a public float of $25 million also trigger requirements for notification to help ensure market transparency and compliance with regulatory responsibilities. Thus, the context of control securities makes them a unique category, exempting them from the notification requirements mandated for other types of securities.

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