Series 66 Chapter 2 Exam Questions
Which of the following examples listed below is not an exempt transaction? [A]The sale of U.S. government securities by a registered government securities dealer [B]A pre-organization subscription transaction [C]A sale of stock through a rights offering to existing shareholders of the issuing corporation if no commission is paid [D]A sale of securities by the executor of an estate
A The sale of US government securities by a registered government securities dealer is not included in the USA's list of exempt "transactions", it is an "exempt security".
When an investment adviser representative (IAR) terminates his/her employment with an investment adviser (IA), the state securities Administrator must be notified: [A]In a prompt manner [B]At the time of IAR registration renewal [C]Only after the time of IAR registration renewal [D]Only if the IAR changes employers to another IA
A When an IAR (or agent) begins or terminates employment, the state securities Administrator must be notified "Promptly."
After receiving a written complaint from a customer, which of the following best describes the timeline within which the agent must work with regards to notification of supervisory personnel as well as changes to information filed with the Administrator? [A]The agent must act promptly. [B]The agent must act within 15 business days. [C]The agent must act within 30 business days. [D]The agent must act within 90 calendar days.
A When it comes to notification of supervisory personnel as well as changes to information filed with the Administrator, the agent must act promptly to report such complaints.
A broker-dealer's state registrations under the Uniform Securities Act expires: [A]on December 31st unless it is renewed [B]on the anniversary date of the initial registration unless renewed [C]when clients no longer exist in that state [D]when it ceases to have an office in the state
A By definition, the B/D's registration expires December 31st unless renewed.
Under the provisions of the Uniform Securities Act, which of the following are true regarding the withdrawal of a registration? I. Generally, withdrawal becomes effective automatically 30 days after the application for withdrawal is filed. II. If a disciplinary proceeding is underway or is instituted, the Administrator may determine when and under what circumstances withdrawal shall become effective. III. Once withdrawal becomes effective automatically, the Administrator no longer has the power to institute disciplinary proceedings against the registrant. [A]I and II only [B]I and III only [C]II and III only [D]I, II, and III
A Choices I and II are correct regarding withdrawal of registration but choice III is not true because the administrator can still institute disciplinary actions even though registration has been withdrawn.
Exempt securities are exempt from which of the provisions of the Act? I. Advertising filing requirements. II. Registration requirements. III. Anti-fraud provisions. [A]I and II [B]II and III [C]I and III [D]All
A Exempt securities are exempt from the filing of advertising and registration. Nothing is exempt from anti-fraud.
An entrepreneur who has some background in the finance industry decides to open up an IA firm. The individual brings in several finance professionals as partners in the firm, and solicits several IARs as potential employees, all of which say they would bring a book of clients with them. Which of the following are accurate of this scenario? I. The IA firm will be required to submit the name, address, and proposed method of doing business for the new IA firm. II. The IA firm will be required to submit the names, addresses, business background, and any regulatory actions related to the partners of the IA firm. III. The IA firm will be required to submit the names, addresses, business background, and any regulatory actions related to all IARs who were solicited to work at the IA firm. IV. The IA firm will be required to submit the names, addresses, business background, and any regulatory actions related to clients who transferred to the IA firm with the hiring of a solicited IAR. [A]I and II only [B]I, II, and III only [C]II, III, and IV only [D]I, II, III, and IV
A For INITIAL registration, an IA firm would have to submit the firm's name, address, and proposed method of doing business. As well, the names, addresses, business background, and regulatory actions taken against any key persons, which would include partners, would have to be submitted. Though there are obligations with regards to due diligence and registration related to IARs and customers, these standards are not as high as those for key persons to the business. The firm would not be required to submit all of the items listed for potential employees or new customers.
Under the Uniform Securities Act, Investment Adviser Representatives can be exempt from having to register in a State if the IAR has no office in the State and does not direct business to: [A]More than 5 clients [B]More than 6 clients [C]More than 7 clients [D]More than 10 clients
A If an IAR has no office but has more than 5 clients in a State, the IAR must register in that State. Institutional investors and officers of the IA are not counted when determining the number of clients the IAR has in a State.
Under the Uniform Securities Act, registrations expire [A]every December 31, unless renewed. [B]one year from their effective date, unless renewed. [C]two years from their effective date, unless renewed. [D]three years from their effective date, unless renewed.
A Registration is renewed annually at year-end (Dec 31st) thereafter.
According to the Uniform Securities Act, an investment adviser may legally have custody of money or securities belonging to a client I. If the Administrator has not prohibited this practice. II. If the investment adviser has notified the Administrator that he or she has custody. III. As long as the adviser does not also have discretionary authority over the account. [A]I only [B]I and II only [C]I and III only [D]II and III only
B Choices I and II are correct regarding an Adviser's custody of client funds. Choice III is incorrect because Advisers generally have discretionary authority over client accounts.
If an agent sells a security to a customer, the security must be: [A]Listed on a national securities exchange. [B]Registered with the SEC. [C]Registered or exempted from registration in each applicable state. [D]None of the above.
C In order for an agent to sell a security, the security must either be registered or exempt from registration.
A small IA firm is a 2-person shop. Mr. and Mrs. Smith run their firm together. Mrs. Smith handles the advisory side of the business while Mr. Smith handles the clerical and compliance side of the business. Mr. Smith has health issues two weeks prior to Christmas and he is out of work for over two months. Mrs. Smith does not handle the clerical aspects of the business and does not bring in any outside help. She stumbles upon a letter regarding renewal of registration of the firm as she sorts through mail from late December. Which of the following is accurate regarding this scenario? [A]Unless Mr. Smith had already sent in renewal documents, it is likely that in his absence, the registration of the firm has lapsed as of December 31st, and continued operation may be in violation of the Uniform Securities Act. [B]Even if Mr. Smith had not already sent in renewal documents, it is unlikely that registration has lapsed, because initially, the firm was registered in the middle of a calendar year. [C]Unless Mr. Smith sends in the documents, it is likely that the firm will be in violation, since Mrs. Smith is prohibited from handling registration matters for the firm. [D]Even if Mr. Smith had not already sent in renewal documents, Mrs. Smith may still continue to offer investment advice, because under Uniform Securities Act regulations, registration is not required annually.
A If registration paperwork had not already been handled by the IA firm prior to Mr. Smith's absence, it is likely that registration has lapsed and that Mrs. Smith would be in violation of the Uniform Securities Act by practicing without an active registration. Under the Uniform Securities Act, IA registrations are pro-rated for the first year of operation through December 31st and are renewed annually thereafter. In this instance, Mrs. Smith would be permitted to submit registration renewal documents.
According to the Uniform Securities Act, all of the following are true of registration of securities by filing EXCEPT: [A]The total net worth of the issuer must be $2 million and the issuer also must have achieved net income from operations before allowances for a minimum of 3 of the last 4 preceding fiscal years. [B]The issuer must have a total net worth of $4 million or more. [C]At least one class of securities must be carried by the issuer and held by 500 people or more. [D]For a minimum of 36 months, the issuer must be actively engaged in business operations within the United States.
A Section 302 of the Uniform Securities Act requires an issuer to be actively in business in the United States for at least 36 consecutive months immediately before the filing of the registration statement. The issuer must have a net worth of $4 million, securities held by 500 or more people, or net income from operations before allowances for at least 2 of the 3 preceding fiscal years, NOT 3 OF 4.
Which of the following are accurate statements related to a registration performed by Coordination? I. Paperwork must be filed with the State or States where the securities will be sold. II. Paperwork must be filed with the NASAA (North American Securities Administrators Association. III. Paperwork must be filed with the SEC in accordance with the Securities Act of 1933. IV. Paperwork must be filed with FINRA in accordance with the Securities Act of 1934. [A]I and II only [B]I and III only [C]II, III, and IV only [D]I, II, III, and IV
B A security being sold by Coordination would be registered at the Federal Level and would concurrently be registered at the State levels. The two registrations are "coordinated" at the same time. The Federal registration would be performed under the Securities Act of 1933. Registration paperwork would NOT need to be filed with the NASAA, FINRA, or under other securities acts.
According to the Uniform Securities Act, a person who has no place of business in a particular state need not register as an investment adviser if: I. The person's clients are only broker-dealers and insurance companies. II. The person's retail clients in that state do not exceed 15 in number. III. The person is qualified as a chartered financial analyst. IV. During any 12-month period, business communications are not directed to more than five clients in that state. [A]I, II [B]I, IV [C]III, IV [D]I, III, IV
B According to the Uniform Securities Act, a person does not have to register as an Investment Adviser if their only clients are broker-dealers and insurance companies, or if during any 12 month period, they do not direct communications to more than 5 clients in that state.
An Administrator decides to revoke an exemption which was previously offered in the Administrator's state. Because abuses of this exemption have been taking place for several years, the Administrator decides to pre-date the revocation, making this revocation retroactive. This will allow the Administrator to prosecute those who abused the exemption. Which of the following is TRUE of this scenario? [A]These actions are within the scope of the Administrator's authority. [B]The Administrator is permitted to issue revocations with relation to exemptions, but is not permitted to do so retroactively. [C]The Administrator is permitted to issue revocations with relation to exemptions, but must provide prior notice to all affected parties when such revocations are performed retroactively. [D]The Administrator is permitted to issue revocations with relation to exemptions but may only do so once annually.
B Administrators have the authority to deny or revoke exemptions without prior notice to parties affected. No hearing would be necessary either. However, the Administrator is NOT permitted to issue orders that are retroactive.
Under the provisions of the Uniform Securities Act, which of the following is NOT required for a pre-organization subscription to be an exempt transaction? [A]There may be no more than 10 subscribers. [B]The offer of the security may not be advertised. [C]No commission may be paid to anyone for soliciting potential subscribers. [D]No payment may be made by any subscriber.
B Advertising is acceptable when Pre-organization Subscriptions are offered.
Under the Uniform Securities Act, which of the following is not true with regard to the registration requirements of a Broker-Dealer? [A]If a broker-dealer files for initial registration in the middle of a year, they will be required to pay the filing fee. [B]Any agent that is a partner, officer, or director of the broker-dealer must register with the Administrator separately from the broker-dealer. [C]A broker-dealer will be required to maintain net capital standards. [D]Registration may be cancelled if the broker-dealer ceases doing business.
B All statements are true except "B". Any agent that is a partner, officer, or director of a broker-dealer is automatically registered with the registration of the broker-dealer firm. This is a function of reducing redundancies in paperwork. These persons and their business history/information must be included in the B/D's registration. However, these persons may still be required to take qualification exams.
Under the Uniform Securities Act, which of the following securities is exempt from state registration requirements? [A]OTC common stock [B]Stock traded on the NYSE [C]Limited partnerships [D]Mortgage bonds
B If a security is listed on a National Exchange, it will be exempt from registration within a state because the listing requirements for the Exchange are more stringent than what any of the states require. Therefore, if the security is qualified to be listed on the exchange, it MORE than meets the state's requirement.
An IAR at a federally covered adviser is registered to do business in California and Nevada. The IAR has her office in California, but also puts on sales seminars in Las Vegas on a somewhat regular basis in order to bring in new clients. The IAR has a moderate number of clients in Nevada and sends advertising related to the seminars to existing clients in Nevada as well as referred prospective clients in the Las Vegas area. Which of the following statements is correct regarding this scenario? [A]The IAR has violated the Uniform Securities Act by operating in more than one state. [B]The IAR has acted in accordance with her registrations and is permitted to advertise to the prospective clients in the Las Vegas area. [C]The IAR has violated the Uniform Securities Act, because people from many states visit the Las Vegas area, and the IAR may end up with clients who are not residents of California or Nevada at a sales seminar. [D]The IAR has not violated the Uniform Securities Act, but would be required to register in all 50 states, because she works for a federally covered adviser.
B In this scenario, the IAR would be required to register in the state in which they have an office, California, and would also be required to register in states where the IAR has clients and/or advertises. Since the details listed show clients in California and Nevada, the IAR is acting in accordance with her registrations. The advertising is permitted as long as it follows the guidelines of the 1940 Act. The IAR would not be required to register in all 50 states because of registration with a federal covered adviser. As well, the IAR has not violated the Uniform Securities Act by putting on a seminar where someone from a state outside of her current registrations may attend. However, if the IAR did start doing business with new clients from a state other than California and Nevada, registration in those states may be required.
According to the Uniform Securities Act a registration by qualification becomes effective [A]60 days after all information is filed with the administrator [B]when the administrator so orders [C]automatically after the offering has been filed with the administrator [D]when the federal registration filing becomes effective
B Registration becomes effective when deemed effective by the Administrator.
An IA must be registered in a state under the USA even if it has no place of business in the state if: [A]its only clients in the state are Investment Advisers. [B]its only clients in the state are considered accredited investors. [C]its only clients in the state are insurers. [D]during a 12 month period, it directs business communications to a maximum of 5 clients in the state.
B Selling to an Accredited investor would require IA registration. The other choices are all expressly exempt from registration.
Brett is an officer of a firm applying for IA registration. Which is true regarding Brett's registration? [A]It requires separate documentation and approval by the State. [B]Filing by the firm automatically constitutes registration of Brett since he is an officer of the firm. [C]Brett would have to be approved by the Administrator. [D]Brett would not be required to be registered at all.
B Under the USA registration of an Investment Advisory Firm automatically constitutes registration of any investment adviser representative who is also partner, officer, or director. The rule does not cover all equity owners of the firm. Those automatically registered may still have to take qualification examinations. Automatic registration is more a matter of avoiding duplication of paperwork.
Under the Uniform Securities Act, a method of registration generally used for new issues whose registration is filed with and/or pending with the SEC is known as [A]Notice Filing registration [B]Coordination registration [C]Qualification registration [D]Initial registration
B Under the Uniform Securities Act, a method of registration generally used for new issues whose registration is filed with and/or pending with the SEC is known as Coordination.
An agent of a broker-dealer is making calls to attempt to sell securities to clients. The agent is located in Maryland and is calling several states in that region. Which of the following is true of this scenario? [A]In this case, the agent only needs to register in the states where offers are directed and clients accept these offers. [B]In this case, the agent needs to register in all states where offers originate as well as all states where offers are directed, regardless of whether or not offers are accepted. [C]As long as buyers travel to Maryland to purchase securities, the agent only needs to register in Maryland. [D]As long as the agent travels to the states where offers are directed, the agent only needs to register in states where offers are accepted.
B When an agent offers to sell a security to a client, the agent must be registered where the offer originates as well as where the offer is directed. Acceptance of the offer does not matter in terms of registration of the agent, and having clients travel or traveling to clients does not alleviate the agent of the duty to be registered in states where offers are originating or where offers are directed.
A Firm is both a Registered Broker-Dealer and a Registered Investment Adviser. When must registration renewals be made by this Firm? [A]The Firm must only renew its Investment Advisory registration annually as of Dec 31st. [B]The Firm must renew its broker-dealer registration annually, as of its initial registration date. [C]The Firm must renew its broker-dealer and Investment Advisory registration annually, as of Dec 31st. [D]The Firm must renew its broker-dealer and Investment Advisory registration annually, as of its initial registration date.
C According to the Uniform Securities Act, regardless of when the Firm initially registered, both registrations expire on December 31st of the year of initial registration unless renewed. Both registrations would have to be renewed annually at year-end thereafter.
The Uniform Securities Act provides exemptions to the registration of various transactions. One such exemption applies to pre-organization certificates or subscriptions. Which of the following is NOT a condition related to the exemption for transactions in pre-organization certificates? [A]No commissions or other remuneration can be paid or given directly or indirectly for the solicitation of prospective subscribers. [B]The number of subscribers to the pre-organization certificates may not exceed ten (10). [C]The number of subscribers to the pre-organization can be as high as fifty (50). [D]No payment may be made by any subscriber.
C All answers are conditions aside from the subscriber number of 50. Any number that exceeds 10 subscriptions exceeds the verbiage of the Uniform Securities Act, which expressly limits the number of subscribers to ten (10).
An issuer files an exempt offering today with no objection from the state Administrator. Five days later the Administrator enters an order to the deny the exemption. The Administrator's action is [A]permitted as the denial was entered within 10 days of the filing. [B]valid and within the authority of the Administrator. [C]is not permitted as no order to deny an exemption can be made retroactively. [D]is prohibited as the denial must be entered within three business days of the filing.
C Although an Administrator may enter an order to deny or revoke exemptions, it may NOT enter the order retroactively.
According to the Uniform Securities Act, an advisory firm that re-organizes mid-year may file an application to register a successor firm [A]only if that successor firm has existed for over one year. [B]only if the successor firm will have been in existence for the year to date. [C]whether or not the successor firm has existed for a full year. [D]only if the successor firm exists for the remaining portion of the year and a three full years following.
C Application for a successor firm can be made regardless of whether or not the successor firm has been established. The successor firm does NOT have to already be in existence when applying for the unused portion of the year of the reorganized firm.
If the status on an agent changes, who is responsible to notify the administrator? [A]Employer [B]Agent [C]Both [D]Neither
C Both the Agent and the Agent's employer are required to notify the Administrator when there are changes regarding the agent or the Agent's employer.
According to the Uniform Securities Act, which of the following is an exempt security as opposed to an exempt transaction? [A]securities in the OTC market [B]the common stock of a European insurance company [C]securities listed on the New York Stock Exchange [D]the debentures of companies incorporated in the state of Delaware
C By definition of the Uniform Securities Act, securities listed on a registered stock exchange are considered to be Exempt Securities. The reason they are exempt is because the listing requirements for the exchanges is more stringent than any state's requirements.
Which of the following is/are true regarding the antifraud provisions of the Uniform Securities Act? I. In a securities transaction, it is not necessary for a deceitful presentation to result in a sale for a violation to have occurred. II. Governmental bodies or political subdivisions are exempt from the antifraud provisions of the Act. III. Fraud is broadly defined and includes not only deceit but also a failure to make adequate disclosure. [A]III only [B]I and II only [C]I and III only [D]I, II, and III
C Choices I and III are correct regarding anti-fraud, but choice II is incorrect because nothing escapes anti-fraud.
Regulated by the Uniform Securities Act, which of the following responses would have to be registered by qualification? I. XYZ Corporation is one year old. A primary offering of its stock will be offered in all states at the same time. II. The RDC Corporation, formed two years ago, originally made an offering of its stock in several states but now wants to make a new offering of stock in just one state. III. SHZ Incorporated plans to offer its stock in one state and therefore will not file a federal registration statement. [A]III [B]I and II [C]II and III [D]I, II and III
C Qualification generally means that the offering is not filed with the SEC, but is "qualified" in the state of issuance. Choice I is incorrect because the stock will be offered in all states. Choices II & III would registered using qualification because they will offer stock in just one state.
State Administrators have certain authority regarding the establishment of requirements related to net capital and registration of broker-dealers. Which best describes this authority? [A]Administrators must establish minimum capital requirements that are greater to those of the SEC. [B]Administrators can act in the public interest, establishing appropriate minimum net capital requirements for broker-dealers. [C]Administrators can only enforce the minimum net capital requirements of the SEC. [D]Administrators have no authority to establish or enforce net capital requirements of broker-dealers.
C Remember that Federal law always preempts state law and that states can never require more than what is required at the Federal level (SEC). The Administrator has discretion as to whether or not to enforce the SEC requirements on net capital but does NOT have the discretion to establish minimum thresholds. The Administrator does have authority, but that authority is limited in scope. For example, say the SEC has a $25,000 minimum net capital requirement for a particular type of firm. A State Administrator has the authority to require $25,000 minimum net capital or not require it at the State Level, but the State Administrator is not permitted to create a minimum net capital that is lower than $25,000 or higher than $25,000 at the State Level.
A security listed on the NYSE would be a(n): [A]Exempt transaction. [B]Security which must be registered in every state. [C]Exempt security. [D]None of the above.
C Securities listed on the NYSE are considered to be exempt from state registration because the listing requirements for the exchange are more stringent than what is required by the states.
Which of the following is true regarding surety bond requirements? [A]A surety bond in excess of $10,000 will be required by the administrator. [B]A surety bond may be required if the broker-dealer's net capital exceeds $15,000. [C]A surety bond may be required by rule for investment advisers. [D]Only agents must post surety bonds.
C Surety Bonds may be required by Administrators and may vary from state to state.
If you are newly registered with a broker-dealer firm on May 5th. when do you have to renew your registration to adhere to Uniform Securities Act guidelines? [A]No later than the first day, January 1st, of the year following initial registration. [B]No later than May 4th of the year following initial registration. [C]No later than the last day, December 31st, of the year that you are initially registered. [D]No later than May 5th of the year following the year of initial registration.
C The Uniform Securities Act specifies that registrations expire on December 31st of each year regardless of the date of initial registration. In order to renew registration, the registrant must submit their renewal on or before December 31st, prior to the start of the next year.
According to the Uniform Securities Act, which of the following factors determine whether the administrator may proceed against an investment adviser for committing securities fraud? [A]The adviser's business address is in that state. [B]The adviser's clients reside in that state. [C]The fraud concerned securities registered in that state. [D]An act which contributed to the fraudulent conduct was done in that state.
D An administrator may proceed against an investment adviser if the fraudulent activity was conducted in the administrator's state.
After initial registration of a Broker-Dealer Firm, all of the following statements would apply to the firm except: [A]The Administrator may conduct investigations within or outside of the state at any time [B]The Firm is subject to record keeping requirements [C]The Administrator may publish information concerning any violation [D]The Firm is only required to file material changes with the State semi-annually
D Broker-dealers are subject to record keeping requirements. The Administrator may conduct investigations within or outside of the state, and may publish information concerning any violation. If there are material changes in the manner in which the Broker-Dealer does business PROMPT notification, not semi-annual notification is required.
Under the Uniform Securities Act, a State Administrator will require all of the following information in the filing of the initial registration of an Agent of a Broker-dealer EXCEPT? [A]The agent's form and place of business [B]The agent's financial condition and business history [C]The agent's conviction of any felony [D]The agent's conviction of a misdemeanor unrelated to securities
D Choices A, B, & C are items which must be included in the initial filing for the registration of an Agent of a Broker-Dealer. Choice "D" would NOT be required since the misdemeanor is unrelated to securities or the securities business. For example, the conviction of a DUI would not have to be included in the initial registration filing.
Under the Uniform Securities Act, if the Administrator does not deny an application for registration and no disciplinary proceeding is underway in regard to it, how long after filing of the application does registration generally become effective? [A]5 days [B]7 days [C]10 days [D]30 days
D If there are no proceedings pending and there is no denial in effect, registration generally becomes effective in 30 days.
Isolated non-issuer transactions are exempt from the registration provisions of the Uniform Securities Act if they are effected: [A]Only by a broker-dealer [B]Only by a stock exchange [C]Only by a registered agent [D]By a person owning the securities to an unregistered broker-dealer
D Isolated non-issuers transactions are generally secondary market trades, whether effected through a broker-dealer or not. Remember that non-issuer means not directly or indirectly for the benefit of an issuer (the company who issued that stock). So in this question they are being tricky by saying the trade is done through an unregistered broker-dealer but that part really does not matter. The thing that makes A, B, and C incorrect is the word "only".
According to the Uniform Securities Act, which of the following is true regarding registration of investment adviser representatives? [A]Representatives are automatically registered when they become employed by a registered investment adviser. [B]A representative's registration remains in effect even during a period when the representative is not employed by a registered investment adviser. [C]Registration in the state where a representative has his or her business office enables the representative to do business in any state. [D]To register, a representative must submit a completed application for registration, a filing fee, and a signed consent to service of process
D Of the choices offered the only choice which is correct is "D". In order to register, an investment adviser representative would have to submit an application, a filing fee, and a signed consent to service of process. Registration is NOT automatic.
According to the Uniform Securities Act, if the administrator prohibits custody of clients' securities or funds by the investment adviser, which of the following would be unlawful: [A]A client gives an adviser a check to pay the advisory fee. [B]The client gives an adviser cash to pay the advisory fee. [C]A registered broker-dealer has custody of a client's securities. [D]A client delivers a stock certificate to an adviser.
D Of the choices offered, the unlawful act would be the delivery of a security to the adviser since the adviser is prohibited from having custody of funds or securities of clients unless such funds are to pay the adviser for their advisory fees. A registered broker-dealer could hold the advisers funds and securities if the adviser cannot do so themselves.
Under the provisions of the Uniform Securities Act, which of the following is true regarding the registration of securities? [A]Registration by coordination becomes effective on a date ordered by the Administrator. [B]The Administrator may require that a prospectus be delivered to every purchaser of a registered security no sooner than the time at which the security is delivered. [C]The effectiveness of a registration statement assures the accuracy of the information contained in the statement. [D]State registration by coordination is only available if a federal registration statement has been filed under the Securities Act of 1933 in connection with the same offering.
D Registration by "Coordination" means that all filings are coordinated for public offering Federal, State, and Regulatory.
Which of the following are exempt from the sections of the Uniform Securities Act which require registration and filing of advertising materials? I. Common and preferred stock issued by a corporation and sold over-the-counter II. Debt securities issued by the United States as well as those issued by the Canadian Government III. Bonds and debentures issued by a corporation and sold over-the-counter IV. Securities such as common stock that are listed on a stock exchange such as the NYSE [A]I and II only [B]II and III only [C]III and IV only [D]II and IV only
D The Uniform Securities Act provides exemptions for US Government Securities, securities issued or guaranteed by the country of Canada, and securities that are listed on national exchanges such as the New York Stock Exchange, American Stock Exchange, and the Midwest Stock Exchange. Corporate equity and debt securities that are sold over-the-counter (not listed) are not necessarily exempt from the registration and filing of advertising, unless these securities qualify for some other exemption. In this case, these corporate securities are not exempt.
According to the Uniform Securities Act, when an agent's registration is revoked for a violation, the administrator may deny any future application submitted by the person for registration by an: I. agent II. broker-dealer III. investment adviser IV. financial and operations principal [A]I, IV [B]II, III [C]I, II, III [D]I, II, III, IV
D When an agent's registration has been revoked, the Administrator may deny an application filed by anyone on behalf of the former agent.
