Series 63

An individual functioning as an investment adviser representative for a federal covered adviser with no place of business in this state would be required to register in this state if A) he conducts frequent public seminars in the state. B) the investment adviser has a small office in the state. C) he has a time-share in the state. D) he deals only with investment companies located in the state

A One of the provisions dealing with federal covered investment advisers is that states have no registration jurisdiction over their investment adviser representatives unless the IAR has a place of business in the state. It makes no difference what kind of clients the IAR serves. Under the Uniform Securities Act, conducting seminars open to the public in a state is considered to be having a place of business in the state. A time-share or vacation home has nothing to do with the IAR's advisory service. The fact that the employer, the IA, has an office in the state, is of no relevance to the IAR

Who are excluded from the definition of broker-dealer for the purposes of state regulation?

Agents, issuers, banks, savings institutions, and trust companies

Investment Advisor

Any person who engages in the business of advising others for compensation. Or someone who issues or analyzes reports concerning securities for compensation.

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 A) charging fees that were higher than customary, but offering a toll-free contact number to compensate for the higher fees. B) accepting an order from a client's spouse shortly after receiving a written trading authorization. C) maintaining custody of customer's funds and securities without notification to the Administrator. D) providing a report or recommendation to any advisory client prepared by someone other than the adviser without disclosing the fact.

B

An agent can avoid civil liability under the Uniform Securities Act for soliciting and selling unregistered securities A) by having the customer's attorney approve the transaction. B) if an offer of rescission is accepted. C) by having the purchaser waive compliance with the law at the time of sale. D) by requiring the customer to acknowledge the sale was unsolicited

B

An individual wishing to register as an agent for a broker-dealer would be required to file an application for registration that includes all of the following except A) citizenship information. B) the applicant's fingerprints. C) the appropriate fees. D) a consent to service of process

B

In which of the following situations is an agent committing a prohibited practice? A) Buying a security on one exchange and simultaneously selling it on another to take advantage of a price disparity B) Using discretion to purchase a security in a discretionary account while awaiting a written receipt of trading authority C) Allowing the customer to place an order to sell 100 shares of ABC from the client's discretionary account D) Buying a security on behalf of a customer and then reselling it before the customer has paid for it

B

Persons not included in the Uniform Securities Act's definition of broker-dealer are agents. banks. issuers. trust companies. A) I and III B) I, II, III, and IV C) II and IV D) I, II, and IV

B

Under the Uniform Securities Act, a client may sue an agent A) only if the broker-dealer goes out of business. B) unless the agent's broker-dealer offers to return the client's purchase price plus interest. C) only if the agent is still alive. D) for up to five years from the date of the violation

B

Broker dealer does not include

Banks, Trust Co, issuer, and agents Banks might have a subsidiary that's a BD, these BD must be registered With no biz or no office in the state: Banks, savings institutions, trust companies, insurance companies, investment companies, employee benefit plans, other BD, existing customers whose residence is not in the state

A control affiliate of a broker-dealer applying for state registration could be the cause of a statutory disqualification if its Form BD disclosed that the control affiliate was A) charged with committing a securities-related felony two years ago. B) indicted for committing a securities-related misdemeanor two years ago. C) convicted of a non-securities-related felony eight years ago. D) convicted of a non-securities-related misdemeanor eight years ago

C

Adell, a retiring social worker living in State A, has some money to invest. An agent suggests she look into investing in a private placement security that is raising money to build apartment buildings in State B. According to the Uniform Securities Act, building projects are not appropriate for retirees who typically need immediate income. private placements are not usually appropriate for retiring individuals because they are not liquid. no rule has been violated because the customer has only been offered the product. if the customer moves to State B, the proposed investment will be suitable because she will be able to live in the apartment. A) I and III B) II and IV C) I and II D) II and III

C

Among the filings made by a registered investment adviser is the brochure supplement. That would be A) the Form ADV Part 2A. B) the Form ADV Part 1B. C) the Form ADV Part 2B. D) the Form ADV Part 1A

C

As used in the Uniform Securities Act, included in the term institutional investor would be accredited investors. banks. employee benefit plans with assets of not less than $750,000. investment companies. A) II, III, and IV B) I and IV C) II and IV D) I, II, III, and IV

C

If an investment adviser representative is engaged in criminal activity while violating a rule under the Uniform Securities Act, but had no knowledge of the rule violated, the maximum penalty that may be imposed is a A) a $10,000 fine and two years in prison. B) a $5,000 fine and three years in prison. C) a $5,000 fine. D) three years in prison and a fine of three times the amount of the loss

C

Summary Order

Can postpone or suspend the registration of any securities professional, a security's registration, or deny or revoke an exemption related to a security or transaction. It can apply to both individuals and securities.

What's not included in the fee disclosure documents?

Commissions, mark ups, markdowns, and advisory fees

A broker-dealer with no place of business in the state would not be required to register with the Administrator unless one of its clients was A) another broker-dealer. B) a trust company. C) a closed-end investment company registered under the Investment Company Act of 1940. D) an employee benefit plan with assets of $845,000.

D

A federal covered investment adviser is a person A) registered under the Uniform Securities Act. B) exempt from regulation under the Securities Exchange Act of 1934. C) registered with the North American Securities Administrators Association (NASAA). D) registered, or excluded from the definition of investment adviser, under the Investment Advisers Act of 1940

D

Matched Orders

Illegal manipulative practice of offsetting buy and sell orders to create the impression of activity in a security, causing upward price movement that benefits the participants.

Qualified Purchaser

In individual or a family business that has over $5 million in investments or an individual/entity that invests over $25 million on their own account or on others behalf

Agents

Individuals who represent broker dealers or an issuer in attempting to sell securities or effecting sales of securities Can be duel registered if under common control or authorized by the administrator

The following six items are not securities under the act:

Insurance or endowment contract, Annuity, Retirement plans, collectibles, Commodities, and currency.

Consent to service of process

It acs the administrator as the applicants attorney to receive an process non-criminal securities related complaints against the applicant. It is submitted with the initial application it's included in the form U4 or the form BD and remains in force permanently and does not need to be supplied with each renewal of a registration

It is unlawful for any person to offer or sell a security in the state unless:

It is registered under the act, security or transaction is exempt from registration, It is a federal covered security

Enjoined

Legal term that is used to refer to a person who is the subject of an injunction if a temporary or permanent injunction is issued, the administrator may request that a receiver or conservator may be appointed over the defendants assets.

A radio or television program is considered to originate in the state where the...

Microphone or television camera is located not the transmitter

Cease and desist order

Order that is used by the administrator whenever it appears that any registered person has engaged, or is about to engage in any act or practice constituting a violation of any provision of the uniform securities act or any rule or order thereunder

Investment advisor does not include a person who has no place of business in the state and gives advice to:

Other broker dealers, snowbirds, financial institutions, Employee benefit plans of at least $1 million, and other investment advisors

Exempt Transactions

Pre-organization certificates (max of 10 subscribers and no funds paid in), private placements, intrastate offerings, issue are transactions between issuers and underwriters, financial institution transactions, non-issuer transactions, fiduciary transactions

Qualification

Securities can register by qualification, this method is almost exclusively used for interstate offerings and these offerings are not registered with the SEC. For this method you give any information that the administrator requests and it's effective when declared by the administrator.

Notice Filing

Technically not a method of securities registration but it is unique for federal covered securities. It's when you file a notice to the administrator letting them know you're gonna be selling securities within their state. The administrator still has authority to require notice filings with respect to federal covered securities and they still may need to pay a fee.

Qualified Client

The term used to describe an individual or company meeting the minimum financial requirements to enter into a performance base compensation contract with an investment advisor. Those natural persons with $1.1 million or more (2.2 million for a couple) under the management of an investment adviser are deemed to be qualified clients

Coordination

This is the most common method of registration and it occurs when you register the security with both the SEC and 1 or more states. Then registration coordinates together. Registration by coordination is accomplished by filing a registration statement with the administrator that includes: 3 copies of the latest prospectus filed with the SEC, copies of articles of indenture, articles of incorporation, agreements among underwriters, amendments to prospectus filed with the SEC

Any individual selling securities on behalf of an issuer of certain exempt securities (bank securities are in that list) is not an agent under the USA. True or False?

True

What are some transactions exempt from registration?

Unsolicited brokerage transactions, transactions between issuers and underwriters, transactions with financial institutions, offerings to a limited number of investors or private placement.

Non-issuer transaction

Where the proceeds of the sale do not go directly or indirectly to the entity that originally offered the securities to the public

Guaranteed security

a security that has its payment of principle, interest, or dividend assured by a third party other than the issuer of the security

Broker-Dealer

any person engaged in the business of effecting transactions in securities for the account of others or for his own account. It's the business unit, it's usually a corporation but could also be a partnership, a limited liability company, or even a sole proprietor ship Any person with an established place of business in the state that it is in the business of buying and selling securities for the accounts of others or for its own account must be registered in that state.

Under the Uniform Securities Act, which of the following are exempt transactions? A transaction between an issuer and an underwriter An unsolicited customer order to buy an exempt security U.S. Treasury bonds Municipal securities A) I and II B) III and IV C) I and III D) II and IV

A

When registering a security under the Uniform Securities Act, the registrant must indicate all of the following except A) the effective date of the offering. B) adverse rulings by a court, regulatory authority, or the SEC with respect to the offering. C) the amount of securities to be offered in the state. D) all other states in which the security is to be registered.

A

Which of the following are not exempt securities under the Uniform Securities Act? A) Preferred stock traded on the OTC Link of the OTC Markets Group (formerly known as the Pink Sheets) B) Anglican church bonds C) Equipment trust certificates issued by a regulated common carrier D) $50,000 denomination commercial paper that has received a rating in the top three grades, maturing in six months

A

Which of the following would be a permissible activity for an agent? A) Placing an order in an existing discretionary account without specific authorization for that trade B) Disclosing receipt of material inside information after using it for personal trades only C) Borrowing money from her father, a client, for the purposes of putting a down payment on a home D) Accepting an order from a third party who explains that the written documentation will arrive prior to the settlement date

A

With regard to the registration requirements of the Uniform Securities Act (USA), which of the following statements are true? Only the issuer itself can file a registration statement with the Administrator. An application for registration must indicate the amount of securities to be issued in the state. The Administrator may require registrants to file quarterly reports. A) II and III B) I and III C) I, II, and III D) I and II

A

What are ways broker dealers can make disclosures easier for the customer?

1. Disclose fees when customer accounts are open and give customers a minimum 30 day notice when fees are changed. Always be clear about anything changes 2. Minimize the fine print, Make sure it is easy for customers to understand What the fee charges are and how they are computed 3. Use standardize language to describe maintenance and service fees to make it easy for customers to compare fees with other firms 4. Make the fee schedule available on the firms website

What are exempt securities under the USA?

1. Short term notes or debt obligations with maturity of 270 days or less and a minimum of $50,000 denomination with the three highest ratings 2. Securities issued by certain issuers for example US government and agencies, municipalities, Canadian government, foreign national governments with diplomatic relations (almost every country in the world) 3. Financial institutions (not variable contracts) 4. Insurance companies 5. Public utility companies and common carriers regulated by the state or federal agency 6. Charitable, religious, and nonprofit organizations

The administrator would not have jurisdiction if the offer were made under any of the following circumstances:

1. Television or radio broadcast that originated outside of the state 2. Bona fide newspaper or a periodical published outside of the state 3. Newspaper or periodical published inside the state but with more than 2/3 of its circulation outside of the state in the last year

No person can lawfully offer or sell any security in the state unless...

1. The security is exempt from registration under the act 2. The security is a federal covered security 3. The transaction is exempt under the act 4. The security is registered under the USA

Under the USA, you are a broker dealer if...

1. You have a place of business in the state or 2. You have even one retail client in the state

How long can investment advisors go with just oral authorization?

10 days, past 10 days authorization has to be in writing

Under the Uniform Securities Act, a person whose business model is selling reports on a subscription basis concerning specific securities to investors based on their individual objectives will be defined as A) an investment adviser. B) a publisher. C) an agent. D) a broker-dealer.

A

Under the Uniform Securities Act, an agent of a broker-dealer registered in one state may transact business in another state in which he is not registered with which of the following? A) An existing client visiting the state for a 2-month period B) An existing client's brother who is a long-time resident of that state C) A resident of that state as long as the security is exempt from registration D) An existing client who established residency in that state less than 60 days ago

A

Covered account

An account primarily for personal, family, or household purposes, that involves or is designed to permit multiple payments or transactions.

Wash Trade

An attempt to manipulate a security's price by creating an apparent interest in the security that really does not exist. It's done by an investor buying in one brokerage account and simultaneously selling through another, this makes it appear volume or price is increasing.

An investment adviser representative borrows $10,000 from his mother-in-law, who is also a client. He signs an agreement to pay back the loan in five years at a below-market interest rate. This arrangement is A) acceptable if any profits and losses in the customer's account are shared in proportion to each party's financial contribution and with the firm's prior permission. B) unacceptable because it is considered an unethical business practice to borrow from a client not in the lending business. C) acceptable because the client is considered an immediate family member. D) unacceptable because the interest rate is too low

B

Rona is an agent with Banff Investment Securities (BIS) registered in Province A. Rona has several clients who travel for business in the United States. To be able to serve their needs while they are traveling, Rona and BIS have obtained a limited registration in the states most frequented by those customers. The renewal date for Rona's annual registration is A) December 31. B) December 1. C) January 1. D) on the anniversary of the initial effective date.

B

Under the Uniform Securities Act, an issuer is any person who issues or proposes to issue a security for sale to the public. According to the USA, which of the following is not an issuer? A) The AAA Manufacturing Company, which proposes to offer shares to the public but has not yet commenced the offering B) The Energy Resources Partnership, which issues certificates of interest or participation in its oil, gas, and mining titles C) The United States government, which proposes to offer Treasury bonds D) The City of Chicago, which is involved in a distribution of school district general obligation bonds

B

When a brokerage firm sells stock from its own inventory, it is acting in the capacity of A) an agent, and charges a commission. B) a principal, and charges a markup. C) an agent, and charges a markup. D) a principal, and charges a commission

B

The Uniform Securities Act invests the office of the Administrator with a number of powers. However, the act does not permit the Administrator to A) inspect offices of registered broker-dealers during normal business hours without prior notice. B) issue an injunction when there is evidence of wrongdoing. C) issue a cease and desist order without prior notice. D) insist that specific forms be used to register securities

B Injunctions may be issued by a court of competent jurisdiction only.

ABC Corporation, a newly formed company, has filed a registration statement with the SEC under the Securities Act of 1933. If they wish to use coordination to register in this state, which of the following statements is true? A) If registered by coordination, the state registration may become effective before the federal registration. B) The federal registration makes state registration unnecessary. C) A statement of the maximum and minimum proposed offering prices and maximum underwriting discounts and commissions must be on file with the Administrator for two full business days prior to the date the federal registration statement becomes effective. D) If registered in State X by coordination, the state registration will become effective 30 days after the federal registration becomes effective.

C

As defined in the Uniform Securities Act, in which of the following cases would an investment adviser not be considered to be maintaining custody? A) The investment adviser has direct control over the client's securities. B) The investment adviser has indirect control over the client's securities. C) The investment adviser receives a check made payable to the IA and returns it within three business days. D) The investment adviser keeps client securities in street name

C

Some registered investment advisers are federal covered, while others register on a state-by-state basis. In the case of a state-registered investment adviser having its only office in State O with no offices in any other state, the authority of the office of the Administrator would include A) requiring the IA to renew its consent to service of process when paying the annual fee. B) the Administrator of State I requiring registration of IARs who make telephone calls to residents of State I. C) requiring IARs to pass a qualification exam. D) requiring each IAR to provide a statement of financial condition.

C

Under the Uniform Securities Act, the Administrator has the power to deny, suspend, or revoke the registration of an issue if it is in the public interest and the issuer discloses in the prospectus that there is virtually no chance that the company's business model will be successful and investors should anticipate losing their entire investment. the Administrator of another state has revoked the issue's registration. an officer of the registrant has been convicted of a securities related crime. the prospectus contains misstatements of nonmaterial information. A) I and II B) I and III C) II and III D) II, III, and IV

C

Under the Uniform Securities Act, which of the following constitutes an offer of a security? A) An agreement between an issuer and an underwriter B) A stock dividend distributed to current shareholders at no cost to them C) The delivery of a prospectus to a prospective purchaser D) A tombstone advertisement

C

Under the Uniform Securities Act, which of the following statements are true about the authority of an Administrator? A cease and desist order may be issued prior to a hearing. A cease and desist order may be issued after a hearing. A cease and desist order is valid for a maximum of 30 days. A cease and desist order may be used to suspend the offering of a security. A) II and IV B) I only C) I and II D) I, II, and III

C

Which of the following securities are exempt from the registration provisions of the Uniform Securities Act? Issue of a savings and loan association authorized to do business in this state General obligation municipal bond Bond issued by a company that has common stock listed on the New York Stock Exchange A) I only B) II and III C) I, II, and III D) II only

C

Under the Uniform Securities Act, certain transactions are exempt from the sales literature and advertising filing requirements. Which of the following would be included in that category? Any isolated, nonissuer transaction Any sale to a financial institution Any transaction by the executor of an estate Any transaction between an issuer and underwriters A) II and III B) I, II, and IV C) I, II, III, and IV D) I and III

C All four options describe exempt transactions. Exempt transactions are not subject to the advertising and sales literature filing requirements of the Administrator.

As defined in the Uniform Securities Act, which of the following can only be a natural person? A) A broker-dealer B) A holding company C) An investment adviser representative D) An investment adviser

C Only a natural person can be an investment adviser representative. Although there are sole proprietorship investment advisers and broker-dealers, those business more often are structured as legal persons (e.g., corporations or partnerships

One of your customers has inherited 2,000 shares of Shortline Railroad guaranteed preferred stock. Being wary of the term guaranteed, you are asked for its meaning in this context. You would explain that A) the dividends on this stock are guaranteed to increase to keep pace with inflation. B) shareholders are guaranteed against loss of principal. C) the dividend payments on this stock are guaranteed by someone other than the issuer. D) the dividends on this stock are guaranteed by the Shortline Railroad

C The Uniform Securities Act defines a guaranteed security as one whose interest and principal (if a debt security) and dividends (if an equity security) are guaranteed by someone other than the issuer. However, in the case of a stock, there are no guarantees to the capital value

A potential client of an agent is not very forthcoming with financial information, objectives, and goals. In order to be able to make suitable recommendations to a client, A) you would probably run a credit check on the client. B) you are limited to using only the documents provided by the client. C) you should refuse to open the account. D) you would make reasonable inquiry about the client's financial situation, objectives, and needs.

D

ABC Securities is a broker-dealer registered with the SEC and domiciled in State X. ABC Securities would not be defined as a broker-dealer in State Y under the Uniform Securities Act if it had no offices in State Y and its only clients were insurance companies. it had contact with fewer than six State Y residents in any 12-month period. its only offer to State Y residents was through radio advertisements originating in State X but received in State Y. it occasionally engaged in firm commitment underwriting with issuers based in State Y. A) II and III B) I and II C) III and IV D) I, III, and IV

D

All of the following are prohibited actions except A) failing to record exempt transactions on the broker-dealer's books and records. B) sharing in profits of an account as a reward for the agent's recommendations exceeding the S&P 500. C) trading in the account of a conservative client exclusively in speculative public offerings with proper trading authorization from the client. D) executing a transaction in a registered nonexempt security in a discretionary account

D

One of the unethical practices under the NASAA Statement of Policy on Dishonest or Unethical Business Practices of Broker-Dealers and Agents is market manipulation. Which of the following are examples of a broker-dealer engaging in that practice? Arbitrage Churning Matched orders Wash trades A) II and IV B) I and II C) I and IV D) III and IV

D

Under the Uniform Securities Act, all of the following are excluded from the definition of an investment adviser except A) a federal covered adviser. B) banks. C) broker-dealers and their agents. D) an individual providing advice on municipal bonds

D

Which of the following securities are exempt from registration at the state level? Bonds issued by the American Red Cross U.S. Treasury bonds American Advisers Unit Investment Trust Common Stock in AAA Commercial Bank, member of the FDIC A) I and II B) II and III C) I, II, and III D) I, II, III, and IV

D

Which of the following statements is true? A) All administrative hearings under the Uniform Securities Act must be held in a court of competent jurisdiction. B) Hearings of an Administrator must be held in public. C) An Administrator may not refuse a registrant's request to hold hearings in private. D) An Administrator may, at the request of a registrant, hold hearings in private

D

Which of the following statements regarding a cease and desist order are true? It is an order to stop a specified activity immediately. If the registered agent continues to violate the statute, the registered agent may become the subject of a court-issued injunction. It may be issued by the state Administrator. A) I and III B) I only C) I and II D) I, II, and III

D

Company X receives commissions for the sale of Company Y's stock. In turn, Company X pays out all of that commission to its employees who sell Company Y's stock. As defined in Section 401(c) of the Uniform Securities Act, Company X would be known as A) very generous. B) an issuer. C) an investment banker. D) a broker-dealer.

D This is very sneaky. This is what broker-dealers, acting in the capacity of underwriters or investment bankers, do. So, why isn't investment banker the correct choice? Because there is no such term in the USA

what are non-persons?

Minors (anyone not able to enter contracts under laws of state) Dead (estate would a be a person) Individuals legally declared mentally incompetent

Administrator

Office or agency that has the complete responsibility for administering the securities laws of the state. They have jurisdiction over the registration of securities professionals and securities. They have the power to make rules and issue orders

National securities markets improvement act of 1996

Promotes efficiency and capital formation in the financial markets. The act eliminates the dual system of state and federal registration of certain securities and investment advisors

What happens if a person who is the subject of an investigation refuses to furnish the required evidence or just ignores the subpoena?

The legal term that describes this type of disobedience is contumacy, this means that the administrator may apply to the appropriate court in her state and ask for help and from there the court can issue an order to the person requiring compliance with the request. Failure to obey the order of the court may be punished by court as a contempt of court which can lead to jail time.

Under the USA, you are not a broker dealer if...

1. You have no place of business in the state and 2. Your only clients are other BDs, institutions, and issuers of the security involved in the transaction and/or your only business in the state is with existing clients who are temporarily in the state

A customer opens a margin account with a broker-dealer and signs a loan consent agreement. The loan consent agreement allows the firm to A) loan out the customer's margin securities. B) commingle the customer's securities with securities owned by the firm. C) lend the customer money. D) hypothecate securities in the account

A

According to the Uniform Securities Act, a sale is A) a contract to transfer ownership of a security for value. B) an offer of an equivalent contract. C) an attempt to transfer ownership of a security. D) a solicitation of an offer to buy.

A

An individual who has applied for registration as an agent of a broker-dealer has just passed the Series 63 exam. This individual may begin soliciting brokerage clients A) when informed by the broker-dealer that the agent's registration is effective. B) within 48 hours. C) immediately. D) when informed by the Administrator that the representative's registration is effective.

A

The Uniform Securities Act holds that persons performing certain activities shall be registered as investment adviser representatives. That requirement would apply to which of the following? A) Paul, who works for a life insurance company soliciting individuals to purchase variable annuities and variable life insurance B) John, who opens an investment advisory firm where he devotes his time exclusively to management responsibilities as the sole proprietor of the firm C) Mark, who is employed at AAA Broker-Dealers earning commissions on transactions made based on research conducted by his firm's securities analyst D) Margaret, who works as a registered agent for a nationally known broker-dealer and deals exclusively with recommending investments for clients' IRAs

B

Which of the following statements regarding the brochure delivery requirements of the NASAA Model Rule for investment advisers are true? The brochure must be updated each time Part 1A of Form ADV is updated. The brochure delivery requirement does not apply to investment companies or clients who are serviced on an impersonal basis, such as with a newsletter, with an annual cost of less than $500. A brochure, or summary of material changes, if any, must be delivered to all clients within 120 days of the end of the adviser's fiscal year. A) I, II, and III B) II and III C) I and II D) I and III

B

Under the Uniform Securities Act, the Administrator may A) relax the antifraud provisions for investment adviser representatives not residing in the state. B) waive only those requirements of the act that are nonbinding. C) waive any requirement of the act he deems inappropriate. D) make rules, orders, and forms the Administrator considers necessary to carry out the provisions of the act

D

Under the Uniform Securities Act, the definition of an investment adviser does not include investment adviser representatives. lawyers and accountants whose investment advisory services are solely incidental to their practices. broker-dealers who offer investment advice on an incidental basis without special compensation for the advice provided. federal covered investment advisers. A) I only B) II and III C) I, II, and III D) I, II, III, and IV

D

Under the Uniform Securities Act, the executive office of the investment adviser—from which the officers, partners, or managers of the investment adviser direct, control, and coordinate the activities of the investment adviser—is properly referred to as A) the home office. B) the office of supervisory jurisdiction (OSJ). C) the registered office. D) the principal office and place of business.

D

Under the Uniform Securities Act, which of the following are elements in the definition of an investment adviser? Advice as to investments must be in writing, not given orally. Advice must relate to the value of securities or recommendations to purchase or sell securities. There must be compensation for services rendered. A) I and II B) I, II, and III C) I and III D) II and III

D

Under which of the following circumstances can an Administrator initiate a suspension or revocation proceeding against a broker-dealer registered in the state? On discovery that the broker-dealer's license had been suspended in another state On the conviction of a violation of the Securities Exchange Act of 1934 Two years after the withdrawal of registration by the broker-dealer On the basis of facts known by the Administrator at the time of the broker-dealer's initial registration A) I and III B) II and IV C) II and III D) I and II

D

Which of the following are allowable activities of an agent of a registered broker-dealer? A) Establishing a joint account with a customer without consent of the broker-dealer B) Borrowing money from a retail client at the broker-dealer C) Splitting commissions with an agent registered with another broker-dealer D) Borrowing money from a colleague at the agent's broker-dealer

D

Which of the following is an unethical practice for agents of broker-dealers? A) Effecting securities transactions not recorded on the books of the employing broker-dealer with the employing broker-dealer's approval in writing B) Borrowing money from a commercial bank that has investment accounts at the broker-dealer C) Failure to make a bona fide public offering of all securities acquired as an underwriter D) Effecting securities transactions not recorded on the books of the employing broker-dealer without prior written authorization

D

Which of the following practices is fraudulent? A) Selling a security to a customer with a commission that exceeds industry standards B) Failing to state all the facts related to a security C) Marking up a security by 10% more than industry standards with the customer's knowledge and consent D) Marking up a security by 5% but indicating to the client that the markup is only 2%

D

Which of the following would be causes for concern about cybersecurity? A broker-dealer keeps all the firm's financial records in a ledger book. A broker-dealer stores some of the firm's financial records electronically. A broker-dealer's agents operate as independent contractors and maintain devices that access personally identifiable information about clients. A broker-dealer's bookkeeper prefers to do the books from home on a personal computer. A) I, II, III, and IV B) I and III C) II and IV D) II, III, and IV

D

Which of the following securities are exempt from registration under the Uniform Securities Act? Municipal securities Government securities Stock or bonds issued by an insurance company authorized to do business in this state A) II and III B) I only C) I and III D) I, II, and III

D All government and municipal securities are exempt from registration requirements under the Uniform Securities Act, as are insurance company securities if the company is authorized to do business in this state

Investment advisers register with the SEC or with the state(s). Which of the following forms is used solely by state-registered investment advisers? A) Form ADV Part 1A B) Form ADV Part 2A C) Form ADV Part 2B D) Form ADV Part 1B

D Form ADV Part 1B asks additional questions required by state securities authorities. Federal covered advisers do not complete Part 1B. All investment advisers complete both Form ADV Part 2A and 2B as well as Form ADV Part 1A.

The Uniform Securities Act would consider an agent's deliberate attempt to deceive a customer to be A) unethical. B) deceit. C) prohibited. D) fraud.

D Here is a case where you must pick the specific legal term. Fraud is the deliberate or willful attempt to deceive a person. Yes, it is deceitful, prohibited, and unethical, but the legal term for this activity is fraud.