The material discussed within this chapter will comprise approximately 18 questions. Public protection from unfair practices is an extremely important topic and all registered representatives must recognize the rules.

The FINRA and the SEC have a number of rules pertaining to the marketing, prospecting and presentation of securities. The goal of these rules is to protect the public from inaccurate information or unfair practices. So the registered representative must be familiar with what conduct is not permissible when performing these activities. The most relevant rules are described below, organized by which act they fall under.





The Prospectus

Related Articles
  1. Financial Advisor

    The SEC Fiduciary Rule Explained

    The SEC plans to propose its own set of fiduciary rules next year. These are some of the potential implications for advisors.
  2. Markets

    On The Record: Communications With The Public

    NASD Rule 2211 can make or break your career as a registered principal.
  3. Markets

    FINRA: How It Protects Investors

    Find out the history of FINRA, and how it's organized to monitor the markets and protect investors.
  4. Investing

    The Days of Rule 48 Are Coming to An End

    A look at the proposal to repeal the controversial Rule 48.
  5. Trading

    The Uptick Rule Debate

    This rule was deemed ineffective and repealed in 2007, but critics argue it protects the market from bear raids.
  6. Investing

    The Series 79 Exam: What It Is And When You Need It

    If you're getting into the field of investment banking, you'll need to know all about the Series 79.
  7. Investing

    Protect Your Gains From Volatility With These 3 Rules

    It's been said that trading is the hardest way to make easy money. And after more than two decades in the markets, I wholeheartedly agree. The vast majority of investment advisors, brokers and ...
  8. Trading

    The Uptick Rule: Does It Keep Bear Markets Ticking?

    This rule prevents traders from driving stocks down, but its effect on market volatility is debatable.
  9. Investing

    Policing The Securities Market: An Overview Of The SEC

    Find out how this regulatory body protects the rights of investors.
  10. Trading

    Why Is Short Selling Legal? A Brief History

    Short selling -- selling borrowed stock in hopes the price goes down -- was unregulated until the Great Depression.
Trading Center