Unit 4 Quizzes

Which of the following securities is most likely to register by qualification in the state of Virginia?

An offering of common stock by a Virginia-based corporation to Virginia residents only

To which of the following situations does the transaction exemption apply?

The sale of an estate's holding of IBM shares by an executor

According to the Uniform Securities Act, each of the following is a security EXCEPT

a contract in soybean futures

A transactional exemption would be offered when a sale is made by

a sheriff

In the Howey decision, the U.S. Supreme Court held that in order for an investment contract to be considered a security, it must represent

an investment of money in a common enterprise with the expectation of profit from the managerial efforts of others

The Uniform Securities Act is designed to protect the general public and not restrict investment activities of institutional or professional investors. Any offer or sale to any of the following would be considered exempt from the registration and advertising filing requirements of the USA EXCEPT

chief executive officers of companies listed on the NYSE

Which of the following describe indications of interest secured during the 20-day cooling-off period? i Binding on the customer ii Nonbinding on the customer iii Binding on the broker-dealer iv Nonbinding on the broker-dealer

i and iv

Which of the following securities is (are) exempt from registration under the Uniform Securities Act? i Municipal securities iiGovernment securities iii Stock or bonds issued by an insurance company authorized to do business in this state

i, ii, and iii

To be exempt under Rule 506(b) of Regulation D of the Securities Act of 1933, the sale of securities must be limited with respect to the number of

nonaccredited investors to whom the security is sold

Under the Securities Act of 1933, all of the following must sign a registration statement for a new issue of nonexempt securities EXCEPT

the managing underwriter of the issuer

Under the Uniform Securities Act, a registration statement of an issuer must contain all of the following information EXCEPT

the names of all the owners of the company's stock

Under the Uniform Securities Act, a nonexempt transaction may take place in the state only if

the security is registered, exempt, or federal covered

Which of the following securities is (are) NOT subject to state registration under the Uniform Securities Act? i Equipment trust certificates issued by a railroad subject to federal regulation ii Preferred stock of a bank holding company listed on the New York Stock Exchange iii Subordinated convertible debentures issued by the Dominion Electric Company of Canada, a public utility regulated by the Canadian federal government iv Shares of a savings and loan association authorized to do business in the state

i, ii, iii and iv

Which of the following securities are exempt from registration at the state level? i Bonds issued by the American Red Cross ii United States Treasury bonds iii American Advisers Unit Investment Trust iv Common Stock in AAA Commercial Bank, member of the FDIC

i, ii, iii, and iv

When the USA refers to unsolicited orders, which of the following is TRUE?

Unsolicited orders are defined as exempt transactions under the USA.

The Securities Act of 1933 covers all of the following except

blue-sky laws

Section 403 of the USA Act states that the Administrator may, by rule or order, require the filing of any sales and advertising literature addressed or intended for distribution to prospective investors, including clients or prospective clients of an investment adviser unless the security or transaction is exempted by Section 402 or is a federal covered security. This would include any i circulars iiform letters iii investment adviser's website iv prospectus

i, ii, iii, and iv

Which of the following securities are federal covered and exempt from state registration? i Bonds of an issuer whose common stock is listed on the NYSE ii Bonds of an issuer whose common stock is listed on the NYSE American LLC (formerly known as the American Stock Exchange [AMEX]) iii Stock traded on Nasdaq iv Registered investment company securities

i, ii, iii, and iv

Under the USA, an exemption from registration is available to a security listed on any of the following EXCEPT

the Montreal Stock Exchange

A consent to service of process must be filed for registration of i investment adviser representatives ii broker-dealers iii investment advisers iv agents

i, ii, iii, and iv