SIE Exam Question 249: Answer and Explanation

Question: 249

The so-called 5% policy pertains to

• A. mark ups, mark downs and commissions on retail secondary market trades in municipal bonds
• B. commissions on NYSE trades exclusively
• C. mark ups on retail OTC transactions excepting new issues
• D. none of the above

Correct Answer: C

Explanation:

C: The FINRA markup markdown and commission policy does not apply to new issues as well as municipal bonds --- MSRB has its own such policy.