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Free Series 99 Practice Questions

10 free, exam-style Operations Professional Examination (Series 99) practice questions with answers and explanations. No signup required. Work through them below, then take the full free Series 99 practice test to study every exam domain.

These 10 free Series 99 questions are organized by exam domain, so you can see how each part of the Operations Professional Examination blueprint is tested. Reveal the answer and explanation under each question.

Domain 1: Knowledge Associated with the Securities Industry and Broker-Dealer Operations 70% of exam

Question 1

A firm is opening an account for a new customer who provides a driver's license and Social Security number. Under the USA PATRIOT Act's Customer Identification Program, what must the firm do with this information?

  1. Retain it for 3 years after the account is opened
  2. Use it to verify the customer's identity within a reasonable time
  3. Forward copies to FINRA within 10 business days
  4. Require the customer to also provide a passport before proceeding
Show answer & explanation

Correct answer: B - Use it to verify the customer's identity within a reasonable time

Question 2

A customer submits a valid transfer instruction to move their entire brokerage account to a new firm through ACATS. Within what timeframe must the carrying firm validate the transfer request?

  1. Same business day
  2. 1 business day
  3. 3 business days
  4. 5 business days
Show answer & explanation

Correct answer: B - 1 business day

Question 3

An affiliate of a reporting company acquired 50,000 restricted shares in a private placement 8 months ago. The 6-month holding period has been satisfied. Under Rule 144, which condition must the affiliate STILL meet to sell these shares in the public market?

  1. The affiliate must comply with volume limitations and manner-of-sale requirements
  2. The affiliate must wait an additional 4 months to complete a 12-month holding period
  3. The affiliate must obtain prior written approval from the SEC before selling
  4. The affiliate must first convert the shares to unrestricted status through the transfer agent
Show answer & explanation

Correct answer: A - The affiliate must comply with volume limitations and manner-of-sale requirements

Question 4

A customer purchases $120,000 of marginable stock in a margin account. Under Regulation T, the customer must deposit initial margin of:

  1. $30,000
  2. $40,000
  3. $60,000
  4. $120,000
Show answer & explanation

Correct answer: C - $60,000

Question 5

A client sells 500 shares of common stock on a Tuesday. Under the current standard settlement cycle for U.S. equity securities, when is the settlement date?

  1. Tuesday (same day)
  2. Wednesday (T+1)
  3. Thursday (T+2)
  4. Friday (T+3)
Show answer & explanation

Correct answer: B - Wednesday (T+1)

Question 6

A broker-dealer computes its net capital using the basic (aggregate indebtedness) method. Under SEC Rule 15c3-1, the ratio of aggregate indebtedness to net capital may NOT exceed:

  1. 8 to 1
  2. 10 to 1
  3. 15 to 1
  4. 25 to 1
Show answer & explanation

Correct answer: C - 15 to 1

Question 7

Under SEC Rule 17a-4, how long must a broker-dealer preserve its blotters, general ledger, and stock record?

  1. 3 years, with the first 2 years in an easily accessible place
  2. 4 years at the firm's principal office
  3. Life of the enterprise plus 3 years
  4. 6 years, with the first 2 years in an easily accessible place
Show answer & explanation

Correct answer: D - 6 years, with the first 2 years in an easily accessible place

Domain 2: Professional Conduct and Ethical Considerations 30% of exam

Question 8

A firm plans to share customer nonpublic personal information with a nonaffiliated third-party marketing company. Under Regulation S-P, which requirement must be satisfied?

  1. The firm must file a data-sharing agreement with the SEC
  2. The firm must obtain a signed written consent form from each affected customer
  3. The third party must first register with FINRA as a vendor
  4. The firm must provide an initial privacy notice and a reasonable opportunity to opt out
Show answer & explanation

Correct answer: D - The firm must provide an initial privacy notice and a reasonable opportunity to opt out

Question 9

Over a two-week period, a customer makes six separate cash deposits of $8,000 each into their brokerage account on different days. An operations professional should recognize this pattern as potential:

  1. Front running, which should be reported to FINRA Market Regulation
  2. Churning, which should be reported to the branch manager
  3. Structuring, which should be escalated to the AML Compliance Officer
  4. Layering, which should be reported to the trading desk
Show answer & explanation

Correct answer: C - Structuring, which should be escalated to the AML Compliance Officer

Question 10

Under FINRA Rule 4370, a member firm's Business Continuity Plan must include all of the following EXCEPT:

  1. Data backup and recovery procedures
  2. A plan for communicating with customers during a significant business disruption
  3. A guarantee that all customer trades will be executed within 24 hours of a disruption
  4. An alternate physical location for employees
Show answer & explanation

Correct answer: C - A guarantee that all customer trades will be executed within 24 hours of a disruption

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