Series 66 Key Terms

2 types of Agents

1. one who represents a B-D 2. one who represents an issuer of securities

ABC Test

1. provides Advice about securities 2. provides these services as a Business 3. receives Compensation for these services

NASAA

North American Securities Administrators Association responsible for updating the USA, organized in 1919 and is the oldest international organization devoted to investor protection. comprised of 67 state, provincial, and territorial securities Administrators.

State

USA includes a state, commonwealth, territory, or possession of the US (including DC and the commonwealth of Puerto Rico)

USA

Uniform Securities Act

Broker-Dealer

a person in the business of effecting transactions in securities for the accounts of others or for its own account

Investment Adviser Representative

any partner, officer, director, or other individual who is associated with an IA and: - makes recommendations or gives advice regarding securities - manages accts or portfolios of clients - determines which recommendations or what advice should be given - solicits, offers, or negotiates the sale of investment advisory services - supervises employees who perform any of these functions

Investment Adviser

any person (usually a firm) that, for compensation, engages in the business of providing others with securities-related advice, reports, or analysis. must satisfy all 3 parts of the ABC test

Issuer

any person who issues or proposes to issue any security. includes the US, state, local or foreign governments, corps, and partnerships

Person

defined as any legal entity that's not deceased, is not a minor, and is not mentally incompetent. under USA, the term may include individuals, corps, partnerships, sole proprietorships, issuers, and state Administrators (both the office and the individual)

Exempt

if a security is exempt, then it's not required to be registered with a regulator

Non-Exempt

if a security is non-exempt, it may be subject to registration (cannot offer unregistered, non-exempt securities through solicitation)

Security

includes, but is not limited to, common stock, bonds, option contracts, and variable annuities

Agent of a Broker-Dealer

non-clerical individual who represents a B-D in effecting securities transactions. salespersons of B-Ds who effect transactions are considered agents and must be registered.

Agent of an Issuer

non-clerical individual who represents an issuer in effecting securities transactions involving the issuer's securities with the public

Administrator

the state securities regulator (more commonly known as the state Administrator) is the person responsible for not only administering and enforcing the securities laws in a state, but educating investors as well