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An employee of an issuer who sells the issuer's common stock exclusively to trust companies and savings institutions is
An employee of an issuer who sells the issuer's common stock exclusively to trust companies and savings institutions is
In their advertising campaigns, investment advisers are prohibited from doing all of the following EXCEPT
In their advertising campaigns, investment advisers are prohibited from doing all of the following EXCEPT
Sharon Smith is an agent for Highwater Securities, a broker-dealer registered in all 50 states. Sharon receives an unsolicited order from a bank located in State X, a state in which she has no place of business. Under the Uniform Securities Act
Sharon Smith is an agent for Highwater Securities, a broker-dealer registered in all 50 states. Sharon receives an unsolicited order from a bank located in State X, a state in which she has no place of business. Under the Uniform Securities Act
Under the Uniform Securities Act, all of the following are prohibited practices EXCEPT
Under the Uniform Securities Act, all of the following are prohibited practices EXCEPT
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An agent learns of material, inside information regarding a company that is publicly held. Which of the following with respect to the information would NOT violate the Uniform Securities Act?
An agent learns of material, inside information regarding a company that is publicly held. Which of the following with respect to the information would NOT violate the Uniform Securities Act?
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Under the USA, the term guaranteed refers to all of these EXCEPT
Under the USA, the term guaranteed refers to all of these EXCEPT
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Under the Uniform Securities Act, which of the following statements is (are) TRUE regarding civil liability of advisers and broker-dealers?
I. The statute of limitations for civil liability is 5 years.
II. A lawsuit against a broker-dealer or adviser can be avoided if restitution, costs, and interest are paid to a client.
III. If restitution is made to a client by a broker-dealer, the Administrator may not prosecute the securities violation.
Under the Uniform Securities Act, which of the following statements is (are) TRUE regarding civil liability of advisers and broker-dealers?
I. The statute of limitations for civil liability is 5 years. II. A lawsuit against a broker-dealer or adviser can be avoided if restitution, costs, and interest are paid to a client. III. If restitution is made to a client by a broker-dealer, the Administrator may not prosecute the securities violation.
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To sell securities, an agent must be registered as an agent in
I. his state of residence where he sells securities
II. each state in which he actually sells securities
III. every state where his employing broker-dealer is registered
IV. each state where he offers the sale of securities to retail clients
To sell securities, an agent must be registered as an agent in
I. his state of residence where he sells securities II. each state in which he actually sells securities III. every state where his employing broker-dealer is registered IV. each state where he offers the sale of securities to retail clients
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Under the USA, the administrator may do all of the following EXCEPT
Under the USA, the administrator may do all of the following EXCEPT
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Under the Uniform Securities Act, an administrator who believes a violation has occurred or is about to occur may
I. issue a cease and desist order without a prior hearing
II. bring action to obtain an injunction and have a receiver appointed over the alleged violator's accounts
III. seek a court order requiring the alleged violation to make restitution to others
Under the Uniform Securities Act, an administrator who believes a violation has occurred or is about to occur may
I. issue a cease and desist order without a prior hearing II. bring action to obtain an injunction and have a receiver appointed over the alleged violator's accounts III. seek a court order requiring the alleged violation to make restitution to others
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Which of the following actions would be considered a violation of the NASAA Statement of Policy on Dishonest or Unethical Business Practices of Broker-Dealers and Agents?
Which of the following actions would be considered a violation of the NASAA Statement of Policy on Dishonest or Unethical Business Practices of Broker-Dealers and Agents?
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Which of the following would NOT be an example of market manipulation?
Which of the following would NOT be an example of market manipulation?
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According to North American Securities Administrators Association's (NASAA) Statement of Policy on Dishonest or Unethical Business Practices of Broker/Dealers and Agents, which of the following practices is NOT unethical?
According to North American Securities Administrators Association's (NASAA) Statement of Policy on Dishonest or Unethical Business Practices of Broker/Dealers and Agents, which of the following practices is NOT unethical?
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An investment adviser who has no office in a state is exempt from registration in a state if, during any 12-month period, he has no more than how many retail clients in the state?
An investment adviser who has no office in a state is exempt from registration in a state if, during any 12-month period, he has no more than how many retail clients in the state?
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After receiving complaint letters from an irate customer, the agent decides against a reply and discards the letters. Under the Uniform Securities Act, the
After receiving complaint letters from an irate customer, the agent decides against a reply and discards the letters. Under the Uniform Securities Act, the
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All of the following must be specified in a security's state registration statement EXCEPT
All of the following must be specified in a security's state registration statement EXCEPT
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Nobody Walks Motor Company, a licensed automobile dealer, is running a promotion offering anyone who purchases a car over the weekend to receive a $1,000 corporate bond at no additional cost. Under the Uniform Securities Act, in order to make this offer
Nobody Walks Motor Company, a licensed automobile dealer, is running a promotion offering anyone who purchases a car over the weekend to receive a $1,000 corporate bond at no additional cost. Under the Uniform Securities Act, in order to make this offer
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Under the Uniform Securities Act, which of the following is NOT excluded from the definition of broker-dealer?
Under the Uniform Securities Act, which of the following is NOT excluded from the definition of broker-dealer?
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Which of the following statements regarding brokerage and advisory activities under the USA and TRUE?
I. It is not unlawful for an investment adviser or broker-dealer to employ any device, scheme, or artifice to defraud in the sales of securities to institutional investors because the USA is designed to protect individual investors.
II. Under the USA, it is unlawful for an investment adviser to deceive a person when not providing advice to that person.
III. Sanctions for both investment advisers and broker-dealers include administrative proceedings, judicial injunctions, and civil and criminal prosecutions.
IV. It is unlawful for any person, whether technically defined as an investment adviser or not, to deceive another person for compensation as to the value of securities.
Which of the following statements regarding brokerage and advisory activities under the USA and TRUE?
I. It is not unlawful for an investment adviser or broker-dealer to employ any device, scheme, or artifice to defraud in the sales of securities to institutional investors because the USA is designed to protect individual investors. II. Under the USA, it is unlawful for an investment adviser to deceive a person when not providing advice to that person. III. Sanctions for both investment advisers and broker-dealers include administrative proceedings, judicial injunctions, and civil and criminal prosecutions. IV. It is unlawful for any person, whether technically defined as an investment adviser or not, to deceive another person for compensation as to the value of securities.
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The agreement that the Administrator can receive subpoenas on behalf of a registered agent, broker-dealer, or investment adviser involved in any securities sale that violates the Uniform Securities Act is the
The agreement that the Administrator can receive subpoenas on behalf of a registered agent, broker-dealer, or investment adviser involved in any securities sale that violates the Uniform Securities Act is the
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Under the Uniform Securities Act, if the Administrator does not deny an application for registration as a broker-dealer and no disciplinary proceeding is underway in regard to it, how many days after filing the application does registration generally become effective?
Under the Uniform Securities Act, if the Administrator does not deny an application for registration as a broker-dealer and no disciplinary proceeding is underway in regard to it, how many days after filing the application does registration generally become effective?
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Under the NASAA Statement of Policy on Dishonest or Unethical Business Practices of Broker-Dealers and Agents, an agent could not
Under the NASAA Statement of Policy on Dishonest or Unethical Business Practices of Broker-Dealers and Agents, an agent could not
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If a manufacturing company in the registration process with the SEC is considering registering its securities in a state, the method that it would use to register in the state is
If a manufacturing company in the registration process with the SEC is considering registering its securities in a state, the method that it would use to register in the state is
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Broker-dealers are prohibited from
Broker-dealers are prohibited from
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Sam Wiggins receives the good news that his registration as an agent for Big Bucks Brokers became effective November 20,2014. Sam celebrates by inviting a number of prospects to his home for Thanksgiving dinner. Instead of cornbread stuffing, Sam's wife inserts mutual fund prospectuses into the "bird" and there are enough for each of the dinner guests. Sam's registration will come up for renewal on
Sam Wiggins receives the good news that his registration as an agent for Big Bucks Brokers became effective November 20,2014. Sam celebrates by inviting a number of prospects to his home for Thanksgiving dinner. Instead of cornbread stuffing, Sam's wife inserts mutual fund prospectuses into the "bird" and there are enough for each of the dinner guests. Sam's registration will come up for renewal on
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An agent is making a presentation of a mutual fund to a client. In order that the client better understand the risks and expenses involved, the agent takes a yellow highlighter and uses it to mark the most important information in the prospectus. Under the NASAA Statement of Policy on Dishonest or Unethical Business Practices of Broker-Dealers and Agents, this is
An agent is making a presentation of a mutual fund to a client. In order that the client better understand the risks and expenses involved, the agent takes a yellow highlighter and uses it to mark the most important information in the prospectus. Under the NASAA Statement of Policy on Dishonest or Unethical Business Practices of Broker-Dealers and Agents, this is
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When it comes to borrowing and lending money, the NASAA Model Rules prohibit activity that would compromise the objectivity of securities professionals. Which of the following are NOT prohibited practices?
I. A broker-dealer lending money to a client to purchase additional securities
II. An agent taking out a car loan from a bank whose branch manager is a client of that agent
III. An investment adviser lending money to a client to enable that client to maintain the minimum required asset level in the account
When it comes to borrowing and lending money, the NASAA Model Rules prohibit activity that would compromise the objectivity of securities professionals. Which of the following are NOT prohibited practices?
I. A broker-dealer lending money to a client to purchase additional securities II. An agent taking out a car loan from a bank whose branch manager is a client of that agent III. An investment adviser lending money to a client to enable that client to maintain the minimum required asset level in the account
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Which of the following transactions are prohibited?
I. Borrowing money or securities from a high net-worth customer
II. Selling speculative or hot issues to a retired couple of modest means on a fixed income
III. Failing to follow a customer's orders to prevent investment in a security not adequately covered by well-known securities analysts
IV. Backdating confirmations for the benefit of the client's tax reporting
Which of the following transactions are prohibited?
I. Borrowing money or securities from a high net-worth customer II. Selling speculative or hot issues to a retired couple of modest means on a fixed income III. Failing to follow a customer's orders to prevent investment in a security not adequately covered by well-known securities analysts IV. Backdating confirmations for the benefit of the client's tax reporting
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Under the NASAA Statement of Policy on Dishonest or Unethical Business Practices of Broker-Dealers and Agents, all of the following are prohibited practices EXCEPT
Under the NASAA Statement of Policy on Dishonest or Unethical Business Practices of Broker-Dealers and Agents, all of the following are prohibited practices EXCEPT
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XYZ Securities Co. is simultaneously registering as a broker-dealer with the SEC and several states. Which of the following statements regarding its registration under the Uniform Securities Act is CORRECT?
XYZ Securities Co. is simultaneously registering as a broker-dealer with the SEC and several states. Which of the following statements regarding its registration under the Uniform Securities Act is CORRECT?
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Study Notes
Employee and Issuer
- An employee of an issuer selling the issuer's common stock exclusively to trust companies and savings institutions is exempt from registration.
Investment Advisers
- Investment advisers are prohibited from doing all advertising campaigns except for those mentioning past specific recommendations that were profitable.
- Advisers are prohibited from making false or misleading statements.
Uniform Securities Act
- Under the Uniform Securities Act, an agent who receives an unsolicited order from a bank in a state where they have no place of business does not need to be registered in that state.
- All of the following are prohibited practices except for guarantees by a broker-dealer or investment adviser.
- Material, inside information regarding a publicly held company cannot be used by an agent for personal gain or to tip others.
Civil Liability
- Under the Uniform Securities Act, the statute of limitations for civil liability is 5 years.
- A lawsuit against a broker-dealer or adviser can be avoided if restitution, costs, and interest are paid to a client.
- If restitution is made to a client by a broker-dealer, the Administrator may not prosecute the securities violation.
Agent Registration
- To sell securities, an agent must be registered as an agent in each state where they offer the sale of securities to retail clients.
- The administrator may do all of the following except allow a broker-dealer to sell securities without registration.
Administrator's Powers
- An administrator who believes a violation has occurred or is about to occur may issue a cease and desist order without a prior hearing.
- The administrator may bring action to obtain an injunction and have a receiver appointed over the alleged violator's accounts.
- The administrator may seek a court order requiring the alleged violator to make restitution to others.
NASAA Statement of Policy
- An agent who has no office in a state is exempt from registration in a state if, during any 12-month period, they have no more than 5 retail clients in the state.
- Failure to reply to a customer complaint is a violation of the NASAA Statement of Policy.
Security Registration
- All of the following must be specified in a security's state registration statement except for the compensation to be paid to the issuer.
- Nobody Walks Motor Company, a licensed automobile dealer, must register the corporate bond offer with the state.
Broker-Dealer Exclusions
- Under the Uniform Securities Act, the following is not excluded from the definition of broker-dealer: an issuer, a bank, or a savings institution.
Brokerage and Advisory Activities
- It is unlawful for an investment adviser or broker-dealer to employ any device, scheme, or artifice to defraud in the sales of securities to individual investors.
- It is lawful for an investment adviser to deceive a person when not providing advice to that person.
- Sanctions for both investment advisers and broker-dealers include administrative proceedings, judicial injunctions, and civil and criminal prosecutions.
Administrator's Agreements
- The agreement that the Administrator can receive subpoenas on behalf of a registered agent, broker-dealer, or investment adviser involved in any securities sale that violates the Uniform Securities Act is the Uniform Registration Agreement.
Registration Effectiveness
- Under the Uniform Securities Act, if the Administrator does not deny an application for registration as a broker-dealer and no disciplinary proceeding is underway in regard to it, registration generally becomes effective 30 days after filing the application.
NASAA Statement of Policy
- An agent cannot use high-pressure sales tactics or make false or misleading statements.
- The method of registering securities in a state is by filing a notice with the state administrator.
Broker-Dealers
- Broker-dealers are prohibited from using high-pressure sales tactics or making false or misleading statements.
- Sam Wiggins' registration will come up for renewal on November 20, 2015.
Mutual Fund Presentation
- An agent who marks important information in a prospectus with a yellow highlighter to help the client better understand the risks and expenses involved is not engaging in dishonest or unethical business practices.
Borrowing and Lending
- The NASAA Model Rules prohibit broker-dealers from lending money to clients to purchase additional securities.
- The following are not prohibited practices: a broker-dealer lending money to a client to purchase securities, an agent taking out a car loan from a bank whose branch manager is a client, and an investment adviser lending money to a client to maintain the minimum required asset level.
Prohibited Transactions
- The following are prohibited transactions: borrowing money or securities from a high net-worth customer, selling speculative or hot issues to a retired couple of modest means on a fixed income, and failing to follow a customer's orders to prevent investment in a security not adequately covered by well-known securities analysts.
- Backdating confirmations for the benefit of the client's tax reporting is prohibited.
Registration
- XYZ Securities Co. is simultaneously registering as a broker-dealer with the SEC and several states; their registration under the Uniform Securities Act is correct.
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Description
Test your knowledge on employees selling issuer's common stock to trust companies and savings institutions. Identify the role of an employee in this specific scenario.
