Unit 11

An individual wishing to register as an agent with a broker-dealer may have to do which of these? Pass an examination. Post a bond. Maintain minimum net capital. Meet minimum state educational requirements.

1 and 2

Which of the following statements are true? An agent must register in the state in which he advertises and solicits a security. To make sales, an agent need not register in a state in which the broker-dealer is already registered. Under no circumstances may an agent register with two unrelated broker-dealers. A secretary for a broker-dealer who, as a courtesy, takes orders for the broker-dealer's clients must be registered.

1 and 4

Which of the following statements is true? An agent may never be simultaneously employed by more than one broker-dealer. An agent must submit separate registrations for each broker-dealer with which she is registered. Certain states prohibit agents from dual or multiple registration. An agent who sells securities in several states must be registered with different broker-dealers in each state.

2 and 3

Under the Uniform Securities Act, which of the following would be considered an agent? A) An individual limiting his sales activity to selling federal covered securities while representing a broker-dealer B) An individual who represents an issuer in an exempt transaction C) An individual who represents an issuer of a security issued by a Canadian province D) A broker-dealer who buys and sells registered securities with the general public

A

A publicly traded corporation offers its employees an opportunity to purchase shares of the company's common stock directly from the issuer. A specific employee of the company is designated to process any orders for that stock. Under the USA, the employee A) may receive commissions, but not a salary, without registration B) must register as an agent if sales-related compensation will be received by the employee, either directly or indirectly C) need not register as an agent of the issuer because the offering is limited to current employees of the issuer D) must register as an agent of the issuer whether or not compensation is involved

B

Which of the following statements best describes the record-keeping requirements of broker-dealers? A) Records shall be maintained and preserved in an easily accessible place for a period of not less than two years from the end of the fiscal year during which the last entry was made on record, the first three of those years in the principal office of the broker-dealer. B) Records shall be maintained and preserved in an easily accessible place for a period of not less than three years from the end of the fiscal year during which the last entry was made on record, the first two of those years in the principal office of the broker-dealer. C) Records shall be maintained and preserved in an easily accessible place for a period of not less than five year from the end of the fiscal year during which the last entry was made on record, the first two of those years in the principal office of the broker-dealer. D) Records shall

B

The Administrator, with proper notice, may examine the financial records of which of the following persons registered in his state?

BDs and investment advisers

Under the Uniform Securities Act (USA), which of the following statements regarding the posting of surety bonds is not true? A) The Administrator can accept securities instead of cash if the posting of a bond is required. B) Bonds may be required for agents of broker-dealers. C) The Administrator requires all broker-dealers to post bonds even if they maintain net capital in excess of minimum amounts. D) The Administrator requires the posting of bonds primarily to cover the cost of civil liabilities associated with violations of the USA.

C

Under the Uniform Securities Act, an individual does not meet the definition of an agent if he is employed by a broker-dealer and only: A) represents the broker-dealer in effecting transactions between the issuer and underwriter. B) trades for the firm's market-making account. C) serves as a partner, officer, or director of the firm with full-time responsibilities in back office management. D) accepts unsolicited orders.

C

Which of the following must register as an agent under the Uniform Securities Act? A) An individual who sells securities of an issuer to the issuer's employees without earning a commission B) A broker-dealer with offices in the state C) A sales assistant who takes orders on behalf of agents in a branch office D) An administrative assistant who provides securities quotes to clients

C

A broker-dealer having no place of business in a state is not required to be registered in that state if the broker-dealer A) is a member of FINRA. B) is a member of the New York Stock Exchange. C) is licensed/registered in its state of residence. D) does no business in that state other than with institutional clients.

D

Section 401(b) of the Uniform Securities Act defines an agent as an individual who represents a broker-dealer or an issuer in effecting or attempting to effect purchases or sales of securities. However, the term agent would not include an individual A) employed by a broker-dealer selling securities on behalf of an issuer. B) representing a non-exempt issuer in the sale of the issuer's securities in a non-exempt transaction. C) employed by the investment banking firm engaged to underwrite a new issue of nonexempt securities. D) employed by an issuer to research industry trends.

D

Under the Uniform Securities Act, the definition of a broker-dealer includes

a person making trades in his own account or in the account of others

During the application process for registration as an agent, the Administrator may request information about the applicant's

citizenship

What document must accompany an initial registration application for those individuals required to register as agents under the Uniform Securities Act?

consent to service of process

A broker-dealer would most likely hire an agent to

sell secs to clients

USATrade Securities, a FINRA member broker-dealer, is registered in 10 Midwest states. Regarding financial requirements, USATrade must meet those of

the SEC

An individual may not act as an agent for more than one broker-dealer

unless the state administrator allows it

Included in the Uniform Securities Act's definition of broker-dealer would be A) issuers of securities. B) a broker-dealer with a place of business in the state whose only clients are insurance companies. C) individuals who are registered as agents. D) savings institutions.

B

Under the USA, the Administrator may do all of the following except A) conduct hearings in public, unless—at the Administrator's discretion and with agreement of all parties—the Administrator decides otherwise. B) mandate the method used to maintain and file records. C) take jurisdiction over any person who sells or offers to sell either when the offer is made in the state or when an offer to buy is made and accepted in the state. D) prescribe form and content of financial statements required under the act.

B

With regard to the state registration requirements of agents of registered broker-dealers, all of the following statements are correct except A) registration is required if they solicit the sale of securities by telephone to fewer than six individuals residing in that state. B) registration is not required in a state where the agent has no place of business and only deals with existing clients who are vacationing in that state. C) registration is required in each state in which the employing broker-dealer has a place of business. D) registration is required when they limit their activity to the sale of exempt securities.

C

Quick and Fast Executions, Inc., a broker-dealer registered with the Administrator, maintains a website describing the services offered by the firm. Which of the following statements would be in compliance with the requirement to maintain certain books and records? A) Because websites tend to be fluid, Administrators only require that they be available for spot-checking. B) The original website design must be retained for a period of at least five years from initial use. C) Retention of any revised design must be kept for a period of at least three years after the initial design's retention period ends. D) The original website design must be retained for a period of at least three years from initial use.

D

Which of the following must register as a broker-dealer under the USA? A) A broker-dealer with no place of business in the state that effects transactions exclusively with issuers of securities in that state B) A broker-dealer with no place of business in the state that has directed offers to clients who have more than 30 days' temporary residency in the state C) A broker-dealer with no place of business in the state that deals exclusively with broker-dealers with offices in that state D) A broker-dealer with a place of business in the state that effects transactions exclusively with broker-dealers registered in other states

D

Angelo lives and votes in State W. He winters in State C, splitting his time 60/40 between the two states. Angelo has a brokerage account with Sunset Investment Securities (SIS) and trades with an agent housed in SIS's State W office. SIS is also registered in States M and I but, having no place of business there, is not registered in State C. In order for Angelo's agent to handle the account, registration as an agent is required

in state W