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Question 10: Which of the following would be a reason for a person to receive a statutory disqualification
from
membership in FINRA?
A. The person is on the verge of financial insolvency.
B. The person has been barred from membership in one of the national exchanges.
C. The person has made a misleading statement of material fact on the membership application.
D. All of the above are reasons for a person to receive a statutory disqualification from membership
in
FINRA.
Correct Answer: D
Explanation: All of the choices are reasons for a person to receive a statutory disqualification from
membership in FINRA. A person is subject to a statutory disqualification from membership in any
self-regulatory organization (SRO) if it is considered to be financially weak, if it has been barred from
membership in any other SRO, or if it has made a misleading statement of material fact on the
membership application. Nor is this an exhaustive list of reasons that a person would face a statutory
disqualification.
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