Kaplan Unit II Missed Questions

Registration statements for securities under the act are effective for _________

1 year from the effective date

A primary transaction is _____________

A new offering of an issuer sold to investors

Under the Uniform Securities Act, which of the following persons is responsible for proving that a securities issue is exempt from registration? A. underwriter B. issuer C. State Administrator D. There is no need to prove eligibility for an exemption

B

Under the uniform securities act, which of the following persons is responsible for providing that a securities issue is exempt from registration? A. underwriter B. issuer C. state administrator D. there is no need to prove eligibility for an exemption

B

Which of the following is defined as a security under the Uniform Securities Act? A. A guaranteed, lump-sum payment to a beneficiary B. Fixed, guaranteed payments made for the life or for a specified period C. Commodity futures contracts D. An investment contract

D

Which of the following is defined as a security under the Uniform Securities Act? A. a guaranteed, limp-sum payment to a beneficiary B. fixed, guaranteed payments made for life or for a specified period C. commodity futures contracts D. an investment contract

D

Any sale to an institutional client is a ______ transaction

Exempt

True or False: A sale to an individual can NEVER be exempt

False A sale to an individual can be exempt IF the sale was the result of an unsolicited communication

True or False: An investment contract is NOT defined as a security

False An investment contract is defined as a security

True or False: An unsolicited transaction is NOT an exempt transaction

False An unsolicited transaction is an exempt transaction

True or False: Commodity futures contracts, unlike commodities themselves, are not securities

False Both commodity futures contracts and the commodities themselves are securities

True or False: Unsolicited transactions are both exempt transactions and securities

False Unsolicited transactions are ONLY exempt transactions

True or False: In the event the registration statement was filed by someone other than the issuer (such as a selling stockholder or broker-dealer), that person DOES NOT need to prove the claim

False that person MUST prove the claim

Under the Act, which of the following would be considered an exempt transaction? I. The call from an exisiting client to purchase 1,000 shares of common stock that is not registrered in this state II. The sale of shares that are part of a regsitered secondary of a NYSE-listed copmany to an individual client III. The sale of shares of a bank's IPO to an institutional client IV. The sale of shares of an insurance company's IPO to an individual client A. I and III B. I, III, IV C. II and IV D. I, II, III, IV

I and III

The burden of proof for claiming eligibility for an exemption falls to the ___________

Person claiming the exemption

Registration is effective when ordered by the administrator in the case of registration by __________

Qualification

What happens if a selling stockholder or broker dealer files the registration statement instead of the issuer?

The stockholder or the broker dealer is responsible for proving the claim

A secondary transaction is a __________

Transaction between two investors in the over the counter market The over the counter market is the market between investors

What're the non-exempt transactions

Transactions between brokers and issuers Transactions between banks Transactions between banks and insurance companies

Registration by qualification is the only registration method in which the _______ sets the effective date

administrator

Guaranteed, lump-sum payment to a beneficiary is an ______ excluded from the definition of a security

an endowment policy

Fixed, guaranteed payments made for life or for a specified period are ______ not defined as securities

fixed annuity contracts

The purchase of securities from a broker dealer by an employee of a bank is a ________ transaction

nonexempt

The sale of a security by a broker dealer to the public is a ______ transaction

nonexempt

The burden of proof for claiming eligibility for an exemption falls to the __________

person claiming the exemption

The effective date under registration by coordination is set by the _______

sec

What're the exempt securities

securities issued by banks municipal securities government securities federally covered securities (think NYSE)

A client calling to purchase stock is a ________ transaction

unsolicited

______ annuities and ________ life insurance are NOT exempt

variable annuities variable life insurance