FINRA Investment Banking Representative Practice Exam 2026 - Free Investment Banking Practice Questions and Study Guide

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For which of the following is a company NOT required to notify FINRA?

For actively traded securities

For securities with an ADTV of $100K

For control securities

The company is not required to notify FINRA regarding control securities because control securities are those owned by executive officers, directors, or persons who own 10% or more of a company's equity. The trading of control securities is subject to specific regulatory considerations that differ from those applied to other types of securities. The requirement to notify FINRA is primarily focused on those securities that are more actively traded or have certain thresholds regarding liquidity and shareholder equity.

In contrast, actively traded securities have thresholds and liquidity requirements that are designed for monitoring by FINRA. Additionally, securities with an average daily trading volume (ADTV) of $100,000 or a public float of $25 million also trigger requirements for notification to help ensure market transparency and compliance with regulatory responsibilities. Thus, the context of control securities makes them a unique category, exempting them from the notification requirements mandated for other types of securities.

For securities with a public float of $25 million