Unit 3 Quizzes

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

Mountain High Securities is a broker-dealer registered in Wyoming and Colorado with its principal office located in Colorado. With reference to the Uniform Securities Act, it would be correct to state that

Mountain High Securities must meet the recordkeeping requirements of the SEC

Under the Securities Exchange Act of 1934, which of the following would NOT be considered associated with XYZ Corp., a broker-dealer?

Robert, a client who owns 1,000 shares of XYZ's voting stock

If Wallace resigned his position as an agent with Rockland Securities to work for Gibraltar securities, which of the following parties must notify the Administrator of Wallace's move?

Rockland, Gibraltar, and Wallace

Alex Alexander is planning on registering as an agent for a broker-dealer. Which of the following would be the least likely requirement for a successful application?

Submitting fingerprints

An individual has been hired by a person to assist in the selling of securities it is issuing to residents of State A. The individual would be defined as an agent under the Uniform Securities Act if the issuer is

a credit union organized and supervised under the laws of State A.

Under the Uniform Securities Act, the term broker-dealer would include

a person with no office in the state who directs offers to no more than 5 individual residents of the state in any 12-month period

An agent lives in Montana and is registered in Montana and Idaho. His broker-dealer is registered in every state west of the Mississippi River. The agent's client, who lives in Montana, decides to enroll in a 1-year resident MBA program in Philadelphia, Pennsylvania. During the 1-year period, when the client is in Philadelphia, the agent may

conduct business with the client as usual

An agent is registered in Illinois and Ohio. One of her substantial clients has just moved from Ohio to Arizona, and the agent would like to continue to do business with her. Under the Uniform Securities Act, which of the following statements is TRUE? i The agent's broker-dealer must already be registered in Arizona or complete the Arizona registration process within a time period specified by the act. ii The agent must complete the Arizona registration process within a time period specified by the act. iii The agent must ask the Ohio Administrator to request reciprocal registration from the Arizona Administrator. iv The agent must suggest that the client maintain a mailing address, such as a post office box, in Ohio.

i and ii

Under the Uniform Securities Act, an agent registered in one state may transact business in another state in which he is not registered with which of the following? i An existing client visiting the state for a 2-week period ii An existing client who moved to the state 6 months ago iii An existing client who moved to the state less than 30 days prior iv An acquaintance from another state who requests that the agent execute transactions on his behalf

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 a corporation traded on the New York Stock Exchange in selling securities to the public iv An individual who is employed by the Federal Reserve Board to sell Treasury Bills to retail investors

i and iii

Anyone who represents an issuer in effecting transactions between the underwriter and the issuer:

is excluded from the definition of agent under the Uniform Securities Act.

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

Under the USA, the Administrator may do all of the following EXCEPT

mandate the method used to maintain and file records

Sarah has passed her Series 6 qualification exam but not the Series 63. As Jack's assistant, Sarah has frequent telephone contact with Jack's customers to whom she provides account information and current stock quotes. In this situation, Sarah is

not in violation of any applicable statutes

Broker-dealers and investment advisers must keep all of the following records EXCEPT

records of incoming and outgoing telephone calls

When an agent transfers employment from a broker-dealer registered with the SEC to a broker-dealer registered solely in this state

the agent, the former broker-dealer, and the current broker-dealer must all notify the Administrator

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

unless the Administrator, by rule or order, authorizes such employment

If Somerville Discount Securities has its principal office in New Jersey and recently registered a branch office in Minnesota, which of the following statements is TRUE?

Each agent must be registered in the appropriate state before soliciting or taking orders.

Broker-dealers, investment advisers, agents, and investment adviser representatives who use the internet to distribute information on available products and services that are directed generally to anyone having access to the internet and transmitted through postings on bulletin boards, displays on homepages, or similar methods are not deemed to be transacting business in this state for purposes of the Uniform Securities Act solely on the basis of that fact if which of the following conditions are observed?

With the growth of the internet, NASAA developed an interpretive order concerning broker-dealers, investment advisers, agents, and investment adviser representatives using the internet for general dissemination of information on products and services. The primary focus of this order was to set the parameters under which securities professionals could communicate on the internet or use their websites in states in which they were not registered. Meeting all of the requirements stated in the answer is necessary.

All of the following statements regarding registration of broker-dealers under the Uniform Securities Act are true EXCEPT

a successor firm is exempt from filing a consent to service of process until the renewal date

A federally chartered credit union is domiciled in Texas. The credit union is making an offering of securities in Nebraska. To comply with the Uniform Securities Act's exclusion from the definition of agent, any individual offering the security in Nebraska

could not sell without being an agent

Which of the following would be an agent as the term is defined in the Uniform Securities Act? iAn individual representing a registered broker-dealer in the sale of securities to the general public iiAn assistant to the president of a broker-dealer who accepts orders from clients on behalf of the senior partners iiiA subsidiary of a major commercial bank registered as a broker-dealer that sells securities to the public ivAn issuer of nonexempt securities registered in the state and sold to the general public

i and ii

Which of the following statements is NOT true? i A broker-dealer must be a firm or corporation (legal person) as opposed to a natural person (human being). ii An investment adviser must be a firm or a corporation as opposed to a natural person. iii An investment adviser representative (IAR) cannot, under any circumstances, be employed by a registered broker-dealer.

i, ii, and iii

Under the Uniform Securities Act, unless renewed, the registration of which of the following securities professionals expires on December 31? iAgents iiBroker-dealers iiiInvestment advisers ivInvestment adviser representatives

i,ii,iii, and iv

Information required on an application for registration as an agent would include i the form of business (corporation, partnership, LLC, etc.). ii felony convictions, whether securities related or not. iii a statement of financial condition. iv citizenship information.

ii and iv

Under the USA, each of the following is specifically excluded from the definition of a broker-dealer EXCEPT an

investment adviser

A person who has no place of business in this state would not be considered a broker-dealer if he effects transactions in this state exclusively with all of the following except

investment advisers.

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

must register as an agent only if he will receive commissions or remuneration, either directly or indirectly related to the volume of sales

Under the USA, an individual would not be considered an agent while representing the issuer in any of the following transactions EXCEPT

nonexempt, initial public offerings