SERIES QUIZ 1 PT 1

Which of the following transactions is NOT exempt from the registration requirements of the Uniform Securities Act?

Foster Advisers operates as an investment adviser that is registered in a state where the Administrator, by rule, prohibits investment advisers from holding custody of client funds and securities. This means that Foster Advisers may not I. have physical custody over its clients' monies and certificates II. manage client accounts on a discretionary basis III. examine customers' stock certificates

Which of the following persons is defined as an agent by the Uniform Securities Act?

If an individual acting on behalf of an issuer engages in the sale of securities issued by a savings institution organized and supervised under the laws of any state, which of the following statements is TRUE?

NASAA's Statement of Policy on Dishonest and Unethical Business Practices of Broker-Dealers and Agents would likely consider which of the following to be prohibited activities?

I. A client is rather insistent on purchasing a security deemed unsuitable by the agent. In an effort to dissuade the client, the agent furnishes several websites of analysts who have issued negative reports on that security

II.An agent takes an order from the client's attorney without written trading authorization III. An agent takes an order from the secretary of a nondiscretionary client who is too busy to give the order herself IV. An agent encourages a client to acquire a security on the basis of research recently published by the broker-dealer for its institutional clients

An investment adviser structured as a partnership lends money to a customer to buy recommended securities. Under NASAA's Model Rule dealing with Unethical Business Practices of Investment Advisers, Investment Adviser Representatives, and Federal Covered Advisers, this activity is

Which of the following persons are included in the definition of an agent under the Uniform Securities Act? I. An individual who represents First Securities Brokers, Inc., in selling shares of XYZ Corporation, a New York Stock Exchange listed company

II. An individual who, as part of the job description, represents the City of Chicago in selling its bonds to the public

III. An individual who represents First Securities Brokers, Inc., whose sole activity consists of selling individual investors securities issued by the U.S. government

IV. An individual who is employed by the Federal Reserve Board to sell Treasury Bills to retail investors

Conceptual Financial Solutions (CFS), a broker-dealer registered in States S, B, F and G, has a television commercial broadcast on a station whose studio is located in State S. An individual client who resides in State B, makes an offer to buy based on that advertisement. The State B Administrator would have jurisdiction

Conducting excessive transactions for a single customer is known as

Which of the following statements is NOT true regarding the authority of the Administrator under the Uniform Securities Act?

An individual may NOT act as an agent for more than one broker-dealer

Which of the following would be a permissible activity for an agent?

I. Placing an order in an existing discretionary account without specific authorization for that trade

II. Borrowing money from his mother, client, for the purposes of putting a down payment on a home

III. Accepting an order from a third party who explain that the writen documentation will arrive prior to the settlement date

IV. Disclosing receipt of material inside information after using it for personal trades only

States may require a surety bond as a prerequisite to registration under the Uniform Securities Act for each of the following EXCEPT a(n)

The wife of a customer calls an agent to sell $25,000 worth of securities for a down payment on a house. Although the account is in her husband's name, she says her husband told her to sell the securities. To comply with NASAA'S Statement of Policy on Dishonest and Unethical Business Practices of Broker-Dealers and Agents, the agent should

Under the Uniform Securities Act, requirements for registration as an investment adviser may include which of the following?

I. An announcement of the application for registration in one or more newspapers in the state

II. Minimum financial requirements for advisers who do not have custody of client securities or funds

III. A surety bond for advisers who do not exercise discretion and/or do not have custody of client funds or securities

Which of the following sales would be exempt from the antifraud provisions of the Uniform Securities Act?

Under the Uniform Securities Act, an investment adviser is exempt from registration if the person has no place of business in a state and does not direct communication

I. to more than 5 noninstitutional clients

II. to more than 15 noninstitutional clients

III. within 9 consecutive months

IV. within 12 consecutive months

Which of the following statements regarding an investment adviser representative is TRUE?

An agent omits facts that a prudent investor requires to make informed decisions. Under the Uniform Securities Act, this action is

An agent mistakenly sold an unregistered, nonexempt security to a customer. Which of the following actions should the broker-dealer take?

I. Offer to buy the security back from the customer

II. Ask the customer to sign a customer agreement

III. Register the stock by qualification

IV. Offer to pay interest at an annual rate determined by the Administrator, less income paid, from the date the security was purchased

A broker-dealer is registered in State X. It has no offices in State Y, although it does do business in that state. Under the Uniform Securities Act, registration in State Y is required if the client is a(n)

An investment adviser is preparing an advertisement. Which of the following would be acceptable?

I. An endorsement on radio or TV from a celebrity who is a client of the firm

II. Identifying his best investment recommendations for the past 6 months

III. Offering to provide his investment recommendations for the past 12 months

IV. Promoting his system of charts and formulas while mentioning their limitations and difficulties

Under the Uniform Securities Act, which of the following is included in the definition of an investment adviser?

Under the NASAA's Model Rule on Unethical Business Practices of Investment Advisers, Investment Adviser Representatives, and Federal Covered Advisers, an investment adviser may guarantee investment results

What document must accompany an initial registration application for those persons required to register under the Uniform Securities Act?

An investment adviser with no place of business in the state has 10 clients in the state. For which one of the clients would registration be required?

A retail customer of broker-dealer A is on vacation in Nevada. Broker-dealer A, who is registered and maintains an office in Florida, wishes to make the customer aware of an investment opportunity that has just become available. Which of the following is TRUE?

Under the Uniform Securities Act, a person whose business model is selling reports concerning specific securities to investors on a subscription basis will be defined as

MidWest Advisory Services has $175 million in assets under management and has offices in 10 mid-western states. Regarding recordkeeping requirements, MidWest must meet those

An agent has a client who works in the legal department of ABC Manufacturing Corp. The client informs the agent that the company is going to be taken over by a competitor at a sizeable premium to the current market price. If the agent uses this information to solicit buy orders from clients and prospects, this is an example of

Which of the following would NOT be considered a fraudulent practice under the Uniform Securities Act?

Under the Uniform Securities Act, an investment adviser is exempt from registration if he has no place of business in a state and his only clients are any of the following EXCEPT

Under SEC Release IA-1092, the term investment adviser does NOT include which of the following?

I A broker-dealer who charges for investment advice

II. A publisher of a financial newspaper with regular and general circulation

III. A person who sells security analysis

IV. A CPA who, as an incidental part of his practice, suggests tax-sheltered investments to wealthier clients