Series 63 - Simulated Exams
If the client meets the SEC's annual income standard to qualify as an accredited investor
A broker-dealer registered with the SEC has offices in States L, A, and M. The firm has several clients in State G. If the firm does not have a place of business in State G, when would registration as a broker-dealer in that state be required? A) Never, because once a broker-dealer registers with the SEC, state registration is no longer required B) If any of its clients are state-chartered banks C) If the client meets the SEC's annual income standard to qualify as an accredited investor D) If one of its clients was the CDL Corporation Employee Pension Trust with assets in excess of $9 million
not defined as an agent
A president of a bank sells shares of the bank to public investors. Under the Uniform Securities Act, she is A) underwriting the issue in the role of a broker-dealer. B) an investment adviser. C) not defined as an agent. D) an agent.
Securities issued by a federal credit union
According to the Uniform Securities Act, a person representing an issuer in the sale of which of the following securities would have to be registered as an agent? A) Securities issued by a federal credit union B) Municipal bonds C) Securities issued by the Government of Brazil D) Securities of a federally chartered bank
post a surety bond, pay filing fees, and pass an exam
According to the Uniform Securities Act, the Administrator has the power to require a person wishing to register as an agent to A) post a surety bond and pass an exam. B) post a surety bond, pay filing fees, and pass an exam. C) have minimum net capital, pay filing fees, pass an exam, and post a surety bond. D) have minimum net capital, post a surety bond, and pass an exam.
under no circumstances
An Administrator has jurisdiction over an offer to sell securities if it is made in a newspaper published out of his state A) with at least two-thirds of its circulation in the state. B) with at least a third of its circulation in the state. C) with at least half of its circulation in the state. D) under no circumstances.
I, II, and III
An Administrator may summarily suspend a registration pending final determination of proceedings under the Uniform Securities Act. However, the Administrator may not enter a final order without I. appropriate prior notice to the registrant. II. an opportunity for a hearing. III. findings of fact and conclusions of law. IV. prior written acknowledgment of the registrant. A) II, III, and IV B) I, II, and III C) I and II D) I only
An NYSE-listed corporation declares a 2-for-1 stock split
As defined in the Uniform Securities Act, which of the following is not an offer or a sale? A) An NYSE-listed corporation declares a 2-for-1 stock split B) The sale of a warrant C) A contract of sale for a security D) A purported gift of assessable stock
Any charge, conviction, or guilty plea to a misdemeanor involving investments or an investment-related business or bribery, forgery, extortion, or similar offenses
Charles Horse is the CEO of Farrier and Nail, a new broker-dealer applying for registration in a number of states. In completing the application, which of the following events in the CEO's life must be disclosed? A) Financial condition and history including a recent credit report B) Any charge, conviction, or guilty plea to a misdemeanor involving failure to pay child support or alimony or similar domestic offenses C) Any charge, conviction, or guilty plea to a misdemeanor involving investments or an investment-related business or bribery, forgery, extortion, or similar offenses, limited to the past 10 years D) Any charge, conviction, or guilty plea to a misdemeanor involving investments or an investment-related business or bribery, forgery, extortion, or similar offenses
must register by qualification
If Perfect Pasta, Inc., a privately held company in State I that owns four restaurants wants to issue shares to public investors who are residents of State I, the company A) must register by qualification. B) is exempt from registration because there are fewer than 10 restaurants in the state. C) must register by coordination. D) may issue shares under the notice filing procedure available for federal covered securities.
receive a written discretionary power from the customer
If a new customer opens an account with a broker-dealer and tells the agent to buy investments at her discretion, before engaging in any transactions in the account, the agent must A) receive a written discretionary power from the customer. B) designate which investments will be purchased. C) have the customer supply a letter of credit from a bank. D) register as an investment adviser.
by notifying clients of the change in advance
In general, a broker-dealer will disclose any changes to its fee schedule A) by notifying clients of the change in advance. B) within 30 days following the change. C) to the Administrator and then to the clients. D) when requested by the client.
committed to writing and communicated firmwide.
In general, the Administrator would require that a broker-dealer's social media policies be A) limited to defining the responsibilities of supervisory personnel. B) left up to the manager of each branch office. C) updated at least once every three years. D) committed to writing and communicated firmwide.
the NASAA Model Rule on Custody
In instances where an investment adviser has custody or possession of clients' funds or securities, it must comply with A) the SEC's Customer Protection Rule. B) the National Securities Markets Improvement Act of 1996 (NSMIA). C) the NASAA Model Rule on Custody. D) the NASAA Model Rule on Unethical Business Practices of Investment Advisers, Investment Adviser Representatives, and Federal Covered Advisers.
the designated supervisory individual with that broker-dealer
Michal is an agent registered with a broker-dealer in State W. The responsibility for ensuring that Michal's activity as an agent is properly supervised is that of A) the chief compliance officer of that broker-dealer. B) the designated supervisory individual with that broker-dealer. C) an agent of that broker-dealer who was employed by that broker-dealer before Michal. D) the Administrator of State W.
indicate that there are limitations and difficulties to using the system
One way to make money is to buy low and sell high. If an investment adviser has developed a proprietary charting system that has had a very high degree of success in picking stocks near their market bottoms, any advertisement about the system must A) indicate that there are limitations and difficulties to using the system. B) provide customer testimonials evidencing their satisfaction with the system. C) indicate the length of time the system has been in play. D) show performance for at least the past 12 months, including both winners and losers.
to insurance companies
Out-of-state investment advisers with no office in this state are not required to be registered if only giving advice A) on growth issues. B) to insurance companies. C) on securities issued by open-end investment management companies registered with the SEC under the Investment Company Act of 1940. D) on preferred stock.
I, II, III, and IV
Persons not included in the Uniform Securities Act's definition of broker-dealer are I. agents. II. banks. III. issuers. IV. trust companies. A) I and III B) II and IV C) I, II, and IV D) I, II, III, and IV
in the over-the-counter market
Purchases and sales of publicly traded unlisted securities are made A) privately. B) illegally. C) in the over-the-counter market. D) on the unlisted exchanges.
an economics professor at a local community college who gives lectures in the evenings to public groups about portfolio analysis for which he charges a nominal fee
Registration as an investment adviser or investment adviser representative under the Uniform Securities Act is required of A) a tax attorney who, as an incidental part of his tax practice, recommends that his high tax bracket clients investigate the use of municipal bonds in their portfolios. B) an economics professor at a local community college who gives lectures in the evenings to public groups about portfolio analysis for which he charges a nominal fee. C) an agent of a broker-dealer who recommends model portfolios to clients in exchange for them executing their trades through him. D) an officer of a trust company handling investments for trust accounts.
minimum recordkeeping retention periods by registered investment adviser representatives
State securities Administrators may require all of the following except A) minimum net capital requirements on broker-dealers. B) minimum recordkeeping retention periods by registered investment adviser representatives. C) bonding requirements for registered agents who exercise discretion in customer accounts. D) minimum net worth levels on investment advisers with custody of client funds and securities.
As long as the only dealings with this client are with a previously established Canadian tax qualified retirement plan, Steven only has to file an application and a consent to service of process.
Steven is registered as an agent with Maple Leaf Securities, a Canadian broker-dealer located in Toronto with no offices in the United States. One of Steven's clients recently made a permanent move to Florida. Which of the following statements with respect to Steven is correct? A) Steven's current Canadian registration is sufficient to deal with a client who moves to another country. B) Steven and Maple Leaf Securities must register with both FINRA and the State of Florida. C) Under no circumstances is Steven permitted to have any dealings with this client once residence in Florida has been effective for more than 30 days. D) As long as the only dealings with this client are with a previously established Canadian tax qualified retirement plan, Steven only has to file an application and a consent to service of process.
an offer to sell
There is a stock that you believe is perfect for your customer's portfolio. However, the stock is not registered for sale in the customer's state of residence, nor is it exempt from registration. You suggest that the customer should enter an unsolicited order for the stock because you will be able to accept that. This is A) an offer to sell. B) an offer to purchase. C) an offer to sell only if it is accepted. D) an unsolicited trade.
A publisher of a newsletter that is paid to make reports to be used in the sale of specific securities
Under both state and federal laws, there are a number of exclusions from the definition of investment adviser. Which of the following would not qualify for an exclusion? A) An economist who teaches a course in fundamental analysis at a local community college B) A CPA who gives high tax bracket clients a chart showing the tax-equivalent yield of municipal bonds C) A publisher of a newsletter that is paid to make reports to be used in the sale of specific securities D) A personal injury attorney who recommends that clients consult with a CFP for advice on how to deal with the large settlements they receive
a statement by the agent that the security will be listed on an exchange once the company announces its intention to do so
Under the Uniform Securities Act, all of the following are improper actions except A) a two-month delay in delivering the security to the customer. B) an agreement by the agent to repurchase the security from the customer for the same price at a future date. C) a statement by the agent that the security will be listed on an exchange once the company announces its intention to do so. D) excessive transaction costs.
annually, whether or not the adviser has custody or discretion.
Under the Uniform Securities Act, an investment adviser's current clients must be delivered a brochure A) annually, whether or not the adviser has custody or discretion. B) annually, but only if the adviser has neither custody nor discretion. C) within 48 hours of renewal. D) quarterly if the adviser has both discretion and custody.
I and III
Under the Uniform Securities Act, the Administrator has the authority to I. issue stop orders. II. approve new issues. III. review standard registration forms. A) I and II B) I, II, and III C) II and III D) I and III
a drug-related misdemeanor conviction that occurred eight years ago
When an application for registration as an agent is filed, the Administrator has the right to inquire about any of the following except A) an adjudication by the SEC five years ago. B) a conviction for a securities-related misdemeanor six years ago. C) a drug-related felony conviction that occurred seven years ago. D) a drug-related misdemeanor conviction that occurred eight years ago.
Fortune Income Fund, a closed-end investment company traded on the NYSE
Which of the following prospective clients of a registered investment adviser is exempt from the requirement to receive delivery of the adviser's brochure? A) Fortune Investment Advisers, a registered investment adviser B) Fortune Investment Securities, a registered broker-dealer C) Fortune Income Fund, a closed-end investment company traded on the NYSE D) Fortune Global Hedge Fund with assets of over $500 million
I and IV
According to the Uniform Securities Act, which of the following would be considered exempt transactions? I. The sale of an unlisted corporate bond by an executor of an estate II. The gift of 100 shares of a NYSE-listed stock from a father to his minor child III. Preorganization certificates subscribed to by 14 institutional investors during a 12-month period for which no payment has been made IV. An unsolicited order from an individual client to purchase a nonexempt, unregistered security A) III and IV B) I and II C) I and IV D) II and III
when informed by the broker-dealer that the agent's registration is effective.
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) immediately. B) when informed by the broker-dealer that the agent's registration is effective. C) within 48 hours. D) when informed by the Administrator that the representative's registration is effective.
publishing a notice of the registration in one or more newspapers in the state
As part of the registration process as a broker-dealer in a state, the Administrator may require A) submission of a list of all of the broker-dealer's existing clients. B) publishing a notice of the registration in one or more newspapers in the state. C) net capital exceeding that required by the SEC. D) records be kept for a longer period than required by the SEC.
both he and Lacolle Investments must obtain a limited registration in NH and VT.
François is an agent with Lacolle Investments, a broker-dealer located in Lacolle, PQ, and registered with the Quebec Securities Commission. François has several customers who summer in the White Mountains of New Hampshire and the Green Mountains of Vermont. For François to serve these customers during those months, A) both he and Lacolle Investments must obtain a limited registration in NH and VT. B) both he and Lacolle Investments must obtain a limited registration in NH and VT and limit transactions to those in the customers' self-directed retirement accounts (RRSPs). C) he is covered by the snowbird exemption because neither he nor his broker-dealer maintain a place of business in the U.S. D) only he must obtain a limited registration in NH and VT.
an investment of money in a common enterprise with the expectation of profit from the managerial efforts of others.
In the Howey decision, the U.S. Supreme Court held that a security must represent A) an interest in a publicly traded corporation whose managers are engaged in a regulated business enterprise. B) an investment of money in a common enterprise with the expectation of profit from the managerial efforts of others. C) an investment of money in a common enterprise with the expectation of profit from the efforts of the investor. D) an investment of money in a common enterprise with the expectation of profit or tax deductible losses from the managerial efforts of others.
An agent of a broker-dealer registered in the state
The Affray Compassionate Finance Company (ACFC) is offering $100 million of 150-day commercial paper for sale in State L. The paper is available in minimum denominations of $100,000 and has been rated AA by a leading rating organization. Who of the following would be required to register as an agent in State L in order to legally sell this security in the state? A) An agent of a broker-dealer registered in the state B) An investment adviser who recommends this security to clients C) Because this security is exempt from registration, offers and sales can be made without registration as an agent. D) An employee of the Affray Compassionate Finance Company who receives a 1% commission on sales
as an agent of the issuer.
The president of a manufacturing company sells shares of the company's common stock to the public and receives a commission substantially lower than others selling that stock. Under the Uniform Securities Act, the president is acting A) as a broker-dealer. B) as an agent of the issuer. C) as an agent of a broker-dealer. D) in a capacity that excludes her from the definition of an agent.
be registered as a representative of an investment adviser and have passed the appropriate NASAA exam for IARs.
To transact business in a state as an investment adviser representative, a person must A) be registered as a representative of an investment adviser and have passed the appropriate NASAA exam for IARs. B) be an associated person of an investment adviser who maintains a place of business in the state. C) be registered as a representative of an investment adviser and have passed the appropriate FINRA exam for IARs. D) have passed the Series 63 agent exam and the appropriate NASAA exam for IARs.
have a history of repeatedly delaying the delivery of securities to its customers.
Under the NASAA Statement of Policy on Dishonest or Unethical Business Practices of Broker-Dealers and Agents, it would be considered a prohibited practice for a broker-dealer to A) fail to maintain the required net capital. B) have a history of repeatedly delaying the delivery of securities to its customers. C) maintain an office in the state but fail to register with the Administrator. D) inform customers that past performance is no guarantee of future results.
a nonexempt transaction
Under the Uniform Securities Act, when an IAR acting in the capacity of trustee of a family trust executes a transaction on behalf of the trust, it is A) an exempt security. B) a violation of the trustee's fiduciary responsibility. C) an exempt transaction. D) a nonexempt transaction.
I and III
Under the Uniform Securities Act, which of the following are true regarding the registration of a successor firm? I. The successor firm need not be in existence when the application for registration is filed. II. A filing fee is required with the application. III. The successor firm's registration will be effective for the unexpired portion of the year. A) I and II B) II and III C) I and III D) I, II, and III
III and IV
Which of the following investment adviser compensation arrangements are permitted under the Uniform Securities Act? I. The value of a client's account at the start of the year is subtracted from the value at the end of the year. The investment adviser's compensation is 5% of the difference. II. The investment adviser charges an annual fee of $2,000, but the agreement calls for a waiver of the fee if the client's portfolio value has not increased by at least $20,000. III. The investment adviser charges a fee of 1% of the average value of the account portfolio during the year. IV. The investment adviser charges a flat fee of $1,000 if the client's portfolio assets are $100,000 or more or $2,000 if the client's assets increase to $200,000 or more. A) III and IV B) III only C) I and II D) I and IV
I, II, and IV
Which of the following persons are excluded from the definition of, or exempt from registration as, a broker-dealer under the Uniform Securities Act? I. A broker-dealer with no office in the state that effects trades exclusively with other broker-dealers in the state II. A trust company with an office in the state that deals with the general public III. A broker-dealer with no office in the state that has no more than five retail clients resident in the state within the past year IV. A broker-dealer with no office in the state that effects securities trades exclusively with trust companies or other broker-dealers A) I, II, and IV B) I, II, III, and IV C) I and II D) III and IV
I and III`
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 A) II and IV B) I and III C) I and II D) III and IV
Promising services that an agent cannot realistically perform because of his broker-dealer's limitations
Which of the following practices could be considered fraudulent under the Uniform Securities Act? A) Failing to inform the firm's principal of frequent verbal customer complaints B) Altering the customer's order at the request of a customer, which subsequently results in a substantial loss C) Promising services that an agent cannot realistically perform because of his broker-dealer's limitations D) Participating in active trading of a security in which an unusually high trading volume has occurred
to a lawyer as an incidental part of his legal practice
A transactional exemption would be available when a sale is made in all of the following situations except A) to a broker-dealer by a nonaffiliated broker-dealer. B) by a federal marshal to individual investors. C) to a lawyer as an incidental part of his legal practice. D) to a federally chartered credit union.
requiring a broker-dealer to maintain records for a period longer than specified in the Securities Exchange Act of 1934.
All of the following may be required of broker-dealers by the post-registration provisions of the Uniform Securities Act except A) the Administrator may require the maintaining of correspondence for a specified period of time. B) requiring a broker-dealer to maintain records for a period longer than specified in the Securities Exchange Act of 1934. C) the Administrator may require them to file financial reports. D) the Administrator may require the filing of any form letters sent to prospective investors.
a successor firm is always exempt from filing a consent to service of process until the renewal date
All of the following statements regarding registration of broker-dealers under the Uniform Securities Act are true except A) a successor firm is exempt from paying registration fees until the renewal date. B) a successor firm is always exempt from filing a consent to service of process until the renewal date. C) no broker-dealer can be required to meet financial requirements in excess of those of the SEC. D) broker-dealers with discretion over client accounts may be required to post a surety bond.
would be defined as an investment adviser representative
An individual has been employed by a broker-dealer to make cold calls to solicit prospects for the firm's new wrap fee program. Under the Uniform Securities Act, it is true to state that this individual A) would be defined as an investment adviser representative. B) is not defined as an investment adviser representative because she is only making cold calls. C) does not need supervision because she is only making cold calls. D) would be defined as a wrap fee adviser.
amending the Form ADV
An individual is an agent for a broker-dealer. He takes and passes the appropriate examinations and forms a sole proprietorship investment adviser. About a year later, he terminates his registration with the broker-dealer. This action would require A) terminating the IA registration. B) qualifying by re-examination. C) amending the Form ADV. D) affiliating with another broker-dealer within 30 days.
neither New Jersey nor New York
An investor who resides in New York reads an ad for advisory services in a newspaper published in New Jersey. More than 80% of the newspaper's circulation over the past 12 months has been in the state of New York. According to the Uniform Securities Act, an offer has been made in A) New Jersey. B) New Jersey and New York. C) neither New Jersey nor New York. D) New York.
the broker-dealer has evaluated these securities and believes they would be suitable for inclusion for retirement planning.
Authorized Retirement Investments (ARI) is a registered broker-dealer. ARI publishes a list of securities it approves for inclusion in IRAs. This means A) the broker-dealer has consulted with the regulatory bodies and has received approval from them to recommend these securities for IRAs. B) the broker-dealer has committed an unethical business practice because use of the word approved is prohibited. C) an agent for the broker-dealer can place these in clients' IRAs, knowing that the suitability requirements have been met. D) the broker-dealer has evaluated these securities and believes they would be suitable for inclusion for retirement planning.
his clients, none of whom are residents of New York, receive investment advice as an integral part of his legal services.
Peter Smith, a prominent securities lawyer living in Connecticut, conducts his securities law practice full time in New York state. He must register as an investment adviser in New York state if A) he advises his spouse, who also has an office in New York, that her investment in 15 technology stocks is too high. B) his clients, none of whom are residents of New York, receive investment advice as an integral part of his legal services. C) the clients of his law firm are New York residents and seek advice on the construction of trust documents that may be helpful in reducing taxes on the securities in their estates. D) the clients of his law firm are all residents of Connecticut but conduct their business with him in New York.
cannot sell these securities without being registered as an agent of the S&L.
The First Home Savings and Loan Association of State C has a securities offering being made in the state. Deborah is an employee of the S&L and is selling this security to residents of State C. Deborah A) is not required to register as an agent because she is representing the S&L, an issuer of exempt securities. B) can sell these securities only to individuals who are accredited investors without being registered as an agent. C) cannot sell these securities without being registered as an agent of the S&L. D) is not required to register as an agent because the S&L is domiciled in State C.
a Canadian government bond maturing in 10 years
Under the Uniform Securities Act, each of the following is an exempt transaction except A) a customer contacts an agent and places an order for 500 shares of a stock the agent has never heard of; the agent finds the stock and fills the order. B) a Canadian government bond maturing in 10 years. C) XYZ brokerage firm underwrites 1 million shares of ABC and distributes them only to other underwriters. D) a broker-dealer places an entire new issue of securities among 15 different insurance companies.
issue an injunction to force compliance with an Administrator's rule
Under the Uniform Securities Act, the Administrator may do all of the following except A) issue a cease and desist order without a prior hearing. B) issue a stop order to revoke the effectiveness of a registration statement. C) revoke a previously allowed exemption. D) issue an injunction to force compliance with an Administrator's rule.
an amount not in excess of that set by the SEC.
Under the Uniform Securities Act, the Administrator may require a broker-dealer to post a surety bond of A) $10,000. B) $25,000. C) $50,000. D) an amount not in excess of that set by the SEC.
State registration by coordination is available only if a federal registration statement has been filed under the Securities Act of 1933 in connection with the same offering.
Under 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 ensures the accuracy of the information contained in the statement. D) State registration by coordination is available only if a federal registration statement has been filed under the Securities Act of 1933 in connection with the same offering.
A broker-dealer without an office in the state whose sole clients are registered investment advisers
Under the Uniform Securities Act, which of the following is, by definition, a broker-dealer in a state? A) A broker-dealer without an office in the state whose sole clients are insurance companies B) A broker-dealer without an office in the state whose sole clients are registered investment advisers C) An agent effecting transactions for a broker-dealer D) A broker-dealer without an office in the state whose sole clients are the issuers of the securities in the transaction
XYZ broker-dealer with an office in the state whose only clients are banks
Under the Uniform Securities Act, which of the following is, by definition, a broker-dealer in a state? A) An agent effecting transactions for a broker-dealer B) XYZ broker-dealer without an office in the state whose only clients are insurance companies C) A broker-dealer with no place of business in the state who only does business with other broker-dealers D) XYZ broker-dealer with an office in the state whose only clients are banks
Federal covered securities must be registered with the states
Under the Uniform Securities Act, which of the following statements about federal covered securities is not true? A) Federal covered securities must be registered with the states. B) The issuer of a federal covered security may be required to pay fees to the states. C) Federal covered securities include securities sold under Regulation D of the Securities Act of 1933. D) A security issued by an investment company registered under the Investment Company Act of 1940 is a federal covered security.
only the investment adviser representative must notify the Administrator promptly
When an investment adviser representative terminates employment with a federal covered investment adviser and then registers with a different federal covered investment adviser in the state where the individual has an office, A) the investment adviser representative and the employing adviser must notify the Administrator promptly. B) only the terminating investment adviser must notify the Administrator. C) the investment adviser representative and the federal covered advisers must notify the Administrator promptly. D) only the investment adviser representative must notify the Administrator promptly.
Unsolicited orders are defined as exempt transactions under the Uniform Securities Act.
When the Uniform Securities Act refers to unsolicited orders, which of the following is true? A) Unsolicited orders are defined as exempt transactions under the Uniform Securities Act. B) If the order ticket is appropriately marked, the Administrator may not challenge a broker-dealer's assertion that the order was unsolicited. C) Under certain conditions, an Administrator may prohibit a broker-dealer registered in the state from accepting any unsolicited orders. D) A client may not purchase, at her own initiative, securities trading in the secondary market if the agent is otherwise prohibited from soliciting the order.
I, II, III, and IV
Which of the following are federal covered securities? I. A security quoted on the Nasdaq Stock Market II. Shares of an investment company registered under the Investment Company Act of 1940 III. A security offered under the exemption provided by Regulation D of the Securities Act of 1933 IV. A security that has a federally imposed exemption from state securities registration A) III and IV B) I and II C) I and III D) I, II, III, and IV
I and II
Which of the following are not included in the definition of an agent in the Uniform Securities Act? I. A licensed broker-dealer II. An officer of an issuer who only represents the issuer in selling shares to a broker-dealer underwriting the company's securities III. An officer who represents an issuer of non-exempt securities in the sale of those securities to the public without receiving any compensation IV. An employee of a broker-dealer whose only transactions are with institutional clients A) III and IV B) I and II C) I and III D) II and IV
