Series 6 quiz 1 pt 2

The Uniform Securities Act gives the Administrator the power to examine a broker dealers business records

An Administrator may deny or suspend a registration in all of the following situations EXCEPT

36. Maplewood Money Managers (MMM, an investment adviser with over $250 million in assets under management, directs a substantial portion of their client's securities transactions to Columbia Securities Incorporated (CSI), a registered broker-dealer. If, in response to the business generated by those transactions, CSI provided software that enabled MMM's investment adviser representatives to generate comprehensive portfolio reports for their client accounts, this would be

37. Which of the following securities are exempt from registration requirements under the Uniform Securities Act?

I. Issues of U.S.-based insurance companies authorized to conduct business in the state

II. NYSE traded issues

III. Issues of nonprofit religious organizations

IV. Commercial paper meeting certain requirements

Under the USA, each of the following is specifically excluded from the definition of a broker-dealer EXCEPT an

Under the Uniform Securities Act, an agent who has inside information that ABC Company stock is about to fall

40. Which of the following securities are exempt from the registration provisions of the USA?

I. Issue of a savings and loan association authorized to do business in this state

II. General obligation municipal bond

III. Bond issued by a company that has common stock listed on the New York Stock Exchange

41. Which of the following is NOT included in Form ADV Part 27

42. A fraudulent transaction was initiated by an agent in Indiana by contacting a client residing in lowa. After evaluating the offer, the client agreed to purchase the recommended security while vacationing in Florida. Which Administrators) has (have) jurisdiction?

I. The Indiana Administrator

II. The lowa Administrator

III. The Florida Administrator

43. if a broker dealer purchases 100,000 shares of common stock from an individual investor, this is a

44. An investment adviser (A) has its primary office in State L. They have ranches in states M & N, and they advertise in states O,P,Q. What net capital requirements must they meet?

45. If, in the opinion of the Administrator, an agent is about to engage in a prohibited activity, the Administrator may

46. Except as limited by the Securities Exchange Act of 1934, the state securities Administrator may require, by rule or order, that broker-dealers make or maintain which of the following records?

I. Account ledgers

II. Correspondence

III. Papers and memoranda

IV. Blotters and books

47.When it comes to borrowing and lending money NASAA Model Rules prohibits 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 borrowing money from an affiliated broker-dealer

IV. An investment adviser lending money to a client to enable that client to maintain the minimum required asset level in the account

48. A client is interested in purchasing an unlisted, non-Nasdaq equity security. The compensation to the broker-dealer must be disclosed

I. at the time of the solicitation

II. at the time of trade execution

III. in the prospectus

IV. on the trade confirmation

The NASAA Model Rule on Agency Cross Transactions requires that an investment adviser relying on the rule send a written disclosure document to affected clients including the total number of agency cross transactions during the period for the client since the date of the last such statement or summary as well as the total amount of all commissions or other remuneration the investment adviser received or will receive in connection with agency cross transactions for the client during the period no less frequently than

50. An agent offers to sell a new issue of an unregistered, exempt security to a wealthy individual investor's account through a private placement. The offer is accepted and the transaction is executed. If the agent has not obtained satisfactory suitability information for this transaction, this is

51. State securities Administrators may NOT impose which of the following?

52. While having lunch at his club, an agent overhears a conversation that Technotalk (a publicly traded company) has just lost its biggest account to a competitor. Upon returning to the office, the only person the agent informs of the conversation is his supervisor. In the above situation, the agent has acted

An Administrator wishing to set the net capital requirement for a broker-dealer may not require an amount greater then that

54. Which of the following statements is TRUE?

55. A customer within one year of retirement informs his agent that he wants to use the equity in his house to make enough money within the year to fully fund his retirement. According to the Uniform Securities Act, the agent should

56. According to the USA, the sale of a security to an insurance company is

57. According to the Uniform Securities Act, each of the following is a security EXCEPT

58. An investment adviser must disclose which of the following legal or disciplinary actions to clients and prospective clients if they occurred within the last ten years

I. Conviction of a misdemeanor involving an investment-related Business

II. SEC or other federal regulatory agency proceedings in which the person was found in violation of an investment-related statute

III. A proceeding before FINRA (NASD) in which the adviser was barred or suspended from membership

IV. Conviction of a misdemeanor in a civil action regarding payment of motor vehicle

59. All of the following would be prohibited practices under NASAA's Model Rule on Unethical Business Practices of Investment Advisers, Investment Adviser Representatives, and Federal Covered Advisers EXCEPT

60. When a broker-dealer registers with the state Administrator, which of the following persons are automatically registered as agents of the broker-dealer in the state?