Table of Contents
Section 1: Knowledge of Capital Markets
1.1 Regulatory Entities, Agencies and Market Participants
1.1.1 The Securities and Exchange Commission (SEC)
- The high-level purpose and mission of securities regulation
- Definition, jurisdiction and authority of the SEC
1.1.2 Self-regulatory Organizations (SROs)
1.1.3 Other Regulators and Agencies
- Department of the Treasury/IRS
- State regulators (e.g., NASAA)
- The Federal Reserve
- Securities Investor Protection Corporation (SIPC)
- Federal Deposit Insurance Corporation (FDIC)
1.1.4 Market Participants and their Roles
- Investors (e.g., accredited, institutional, retail)
- Broker-Dealers (e.g., introducing, clearing, prime brokers)
- Investment advisers
- Municipal advisors
- Issuers and underwriters
- Traders and market makers
- Custodians and trustees
- Transfer agents
- Depositories and clearing corporations (e.g., Depository Trust & Clearing Corporation (DTCC), Options Clearing Corporation (OCC))
1.3.1 The Federal Reserve Board’s Impact on Business Activity and Market Stability.25
1.3.2 Business Economic Factors.28
1.3.3 International Economic Factors.33
Section 2: Understanding Products and Their Risks.46
2.1.5 Municipal Fund Securities.94
2.1.6 Direct Participation Programs (DPPs)103
2.1.7 Real Estate Investment Trusts (REITs)108
2.1.9 Exchange-traded Products (ETPs)117
Section 3: Understanding Trading, Customer Accounts and Prohibited Activities.137
3.1 Trading, Settlement and Corporate Actions.137
3.1.1 Orders and Strategies.137
3.2 Customer Accounts and Compliance Considerations.155
3.2.1 Account Types and Characteristics.155
3.2.2 Customer Account Registrations.161
3.2.3 Anti-money Laundering (AML)167
3.2.4 Books and Records and Privacy Requirements.173
3.3.3 Other Prohibited Activities.190
Section 4: Overview of the Regulatory Framework.207
4.1 SRO Regulatory Requirements for Associated Persons.207
4.1.1 Registration and Continuing Education.207