Series 27 – Financial and Operations Principal Firm Practice Questions

A firm notices irregular trading patterns in one of its accounts. What should it do first?

• AA. Freeze the account
• BB. Report to FINRA
• CC. Conduct internal review
• DD. Increase trading limits

An employee of the firm is involved in insider trading. What is the potential consequence?

• AA. No consequences
• BB. Fines and imprisonment
• CC. Job promotion
• DD. A warning

If a firm conducts a public offering, what must it file with FINRA?

• AA. None needed
• BB. Form 1-A
• CC. Form U4
• DD. Form 10-Q

A financial firm is liquidating its assets. What is the order of priority for claimants?

• AA. Creditors, shareholders
• BB. Shareholders, creditors
• CC. Management, creditors
• DD. Shareholders, management

An internal audit discovers fraud in a client's account. What should the firm do?

• AA. Notify the client
• BB. Ignore it
• CC. Resolve internally
• DD. Report to authorities