Finra Exam Series-6 Topic 10 Question 54 Discussion

Actual exam question for Finra's Series-6 exam

Question #: 54
Topic #: 10

[All Series-6 Questions]

The Securities Exchange Commission consists of:

A6 members, elected by member firms.

B5 members, appointed by the President of the U.S., with Senate approval

C7 members, appointed by FINRA.

D5 members, appointed by the Secretary of Treasury of the U.S.

Show Suggested Answer

Suggested Answer: A

Among other things, the trade confirmation that Anna receives must stipulate the items described in Selections I and III only. The trade confirmation that Anna receives from GetErDone must stipulate the time and date of the transaction, the number of shares sold, and the price at which they were sold. The exchange or ECN on which the transaction was executed is not provided on the confirmation statement. Whether GetErDone acted as a principal or a broker in the transaction does need to be stipulated, but in this instance GetErDone acted as a broker, not a principal. GetErDone did not itself buy the shares from Anna.

by Jaclyn at Jan 10, 2023, 12:29 PM

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Shenika

2 months ago

I'm going with B. You can't go wrong with the good old checks and balances of the President and Senate.

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Alayna

14 days ago

Definitely going with B, it just makes sense to have that level of approval.

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Merilyn

19 days ago

Yeah, B makes sense, it's important to have that oversight.

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Alica

20 days ago

I think B is the best choice too, it ensures accountability.

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Ronnie

29 days ago

I agree, B seems like the most reliable option.

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Audry

2 months ago

Option C is just plain wrong. The SEC is a federal agency, not some FINRA-controlled organization.

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Omer

30 days ago

D) 5 members, appointed by the Secretary of Treasury of the U.S.

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Stephaine

1 months ago

B) 5 members, appointed by the President of the U.S., with Senate approval

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Marci

1 months ago

A) 6 members, elected by member firms.

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Malcolm

2 months ago

Haha, imagine if FINRA appointed the SEC members. Talk about a potential conflict of interest!

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Dong

2 months ago

C) 7 members, appointed by FINRA.

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Marylou

2 months ago

B) 5 members, appointed by the President of the U.S., with Senate approval

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Sabina

2 months ago

A) 6 members, elected by member firms.

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Paola

3 months ago

I was leaning towards D, but I guess the Treasury Secretary doesn't have the power to appoint the SEC members. Good to know!

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Sylvie

2 months ago

I was leaning towards D, but I guess the Treasury Secretary doesn't have the power to appoint the SEC members. Good to know!

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Allene

2 months ago

B) 5 members, appointed by the President of the U.S., with Senate approval

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Millie

2 months ago

A) 6 members, elected by member firms.

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Rosendo

3 months ago

Option B seems like the correct answer. The SEC is an independent agency, so the President appoints the members with Senate approval.

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Timothy

26 days ago

Definitely. The appointment process ensures that the SEC operates free from political influence.

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Belen

27 days ago

I agree. It's important for the SEC to remain independent in order to carry out its regulatory duties effectively.

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Anthony

30 days ago

Yes, that's right. The SEC is an independent agency, so the President has the authority to appoint its members.

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Ty

1 months ago

I think option B is correct. The President appoints the members with Senate approval.

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Roosevelt

1 months ago

Definitely, it helps ensure impartiality in regulating the markets.

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Alverta

1 months ago

That's how the SEC operates, it's important to have independence.

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Ciara

1 months ago

Yeah, the President appoints the members with Senate approval.

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Belen

2 months ago

I think you're right, option B makes sense.

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Carmelina

3 months ago

I'm not sure, but I think it's D) 5 members, appointed by the Secretary of Treasury of the U.S. That also sounds plausible to me.

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Leonardo

3 months ago

I agree with Cherilyn, that answer makes sense because the President appoints the SEC members.

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Cherilyn

4 months ago

I think the answer is B) 5 members, appointed by the President of the U.S., with Senate approval.

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