Series 65

The limit on investment in another investment company's shares:

3%

Proprietary Mutual Funds

A house-brand, or proprietary, mutual fund is created when the bank or brokerage firm that distributes the fund also acts an investment advisor for the fund.

Levy

A levy is the legal seizure of property to satisfy an outstanding debt.

What Is a Primary Offering?

A primary offering is the first issuance of stock from a private company for public sale.

Investment counsel

Advisers may use the term only if their principal business is acting as an investment adviser and a substantial part of their business consists of providing continuous advice based on a client's individual needs.

Under the Uniform Securities Act, which of the following are excluded from the definition of investment adviser

LATE lawyers, attorneys, teachers, engineers

Non-assessable stock

Non-assessable refers to a class of shares that do not allow the issuer to demand additional payment for the shares from stockholders. Most stocks are non assessable

Jim is buying stock through a private placement. Under the Securities Act of 1933, which of the following statements is TRUE?

Private placements are exempt transactions under Regulation D of the Securities Act of 1933 and are therefore exempt from registration.

Investment company act 1940: When do you need to file reports with shareholders and with SEC?

Semiannual = Shareholders Annual = SEC

The powers of the Administrator include the ability to determine

The Administrator can determine minimum, not maximum, net capital for broker-dealers (but not in excess of SEC requirements) and, for investment advisers, net worth.

Is the investment adviser is required to release confidential information under a court subpoena?

Yes

Assessable Stock

a class of equities that a company would issue to investors at a discount to face value in exchange for the company's right to come back to investors for more money at a later date.

An investment adviser making investment decisions within parameters agreed upon with the client is managing the portfolio on

a discretionary basis

Under the Uniform Securities Act, the Administrator may require that a prospectus for a security registered under qualification be sent or given to each person to whom an offer is made

before the sale of the security.

Investment company act 1940: What 3 investment companies?

face amount certificate companies, unit investment trusts and management companies

The Uniform Securities Act requires that a consent to service of process be filed for the registration of

investment advisers and broker dealers

Under Section 401 of the Uniform Securities act, the term agent does not include an individual who represents an issuer in effecting transactions in a security

issued by and representing an interest in or a debt of, or guaranteed by, any bank organized under the laws of the United States, or any bank, savings institution, or trust company organized and supervised under the laws of any state

Certain documents belonging to a federal covered investment adviser must be kept for a period of time after the enterprise closes. Those documents are

the responsibility of the investment adviser

Under the Insider Trading and Securities Fraud Enforcement Act of 1988, a person who buys securities with material, privileged, nonpublic information may be subject to a civil penalty of

up to 3 times the amount of gain or prevention of loss