SIE Overview of the Regulatory Framework Question 1: Answer and Explanation

Question: 1

Which of the following is required to be a member of the Financial Industry Regulatory Agency (FINRA)?

• A. A bank that wishes to make loans to a governmental unit
• B. A public official who wishes to be appointed to the Federal Reserve
• C. A company that wishes to issue an initial public offering (IPO)
• D. A firm that wishes to take orders for securities

Correct Answer: D

Explanation:

D: A firm that wishes to take orders for securities must be a member of the Financial Industry Regulatory Agency (FINRA). Choices A, B, and C do not represent a firm or person that is required to be a member of FINRA.