Securities Registration Quiz II (65)

Which Act can be used to coordinate a securities registration filing under the provisions of the Uniform Securities Act? A Securities Act of 1933 B Securities Exchange Act of 1934 C Securities Investor Protection Act of 1970 D Securities Exchange Act Amendments of 1988

A

An existing customer of an agent who is registered in State Z contacts the agent to inquire about selling 1,000 shares of ABCC Corp. - a thinly traded stock that is sometimes quoted in the Pink Sheets. The agent attempts to locate a buyer for the shares for the customer, but cannot find one. One week later, a new customer contacts the agent, asking him to buy 1,000 shares of ABCC Corp. The agent contacts the existing client to see if he is interested in selling these shares. This action is: A a violation of the Uniform Securities Act B considered to be an offer to buy made by the agent C a conflict of interest that must be disclosed to the existing customer D defined as a contract to sell the shares

B

The Administrator may NOT deny effectiveness to a securities registration if: I the application contains incomplete statements of material fact II an officer of the issuer has previously filed for bankruptcy III the issuer's enterprise is illegal in the State IV the issuer's liabilities exceed assets A. I and III only B. II and IV only C. I, III, and IV D. I, II, III, IV

B

To use Registration by Coordination, an issuer must file a registration statement with the: A Administrator of another State B Securities and Exchange Commission C Both of the above D Neither of the above

B

Under the National Securities Markets Improvement Act of 1996, a "Federal Covered Security" is defined as a(n): A security that must be registered in the State in order to be offered or sold in that State B security that is listed on the New York Stock Exchange C offering of a security made solely to non-accredited investors D security for which filing fees cannot be required to be paid in any State

B

Under the Uniform Securities Act, a structured security issued by an investment bank is a(n): A exempt security B non-exempt security C federal covered security D investment company security

B

Offers of pre-organization certificates are exempt under the Uniform Securities Act if which of the following are TRUE? I Commissions or other compensation may be received in connection with the offering II Commissions or other compensation may not be received in connection with the offering III Advertisements are permitted IV Advertisements are not permitted A I and III B I and IV C II and III D II and IV

C

The sale of securities to an insurance company is exempt under the Act under the: A blue-chip exemption B exempt security C sophisticated investor exemption D non-issuer exemption

C

Which tax-advantaged product is NOT a security? Incorrect answer A. You did not choose this answer. A Variable life insurance B Variable annuity C Fixed annuity D Individual retirement plan

C

If an issuer is registering securities with the SEC under the Securities Act of 1933, the Uniform Securities Act permits registration by ___________

Coordination

Filing of advertising with the Administrator is NOT required for: I U.S. Government securities II Municipal securities III Investment company securities IV NYSE-listed securities A. IV only B. I and II only C. III and IV only D. I, II, III, IV

D

The Administrator, in regards to the registration of securities, may: I impound the proceeds from the sale of the securities until the issuer receives a specified dollar amount II require the filing of original copies of confirmed subscription agreements III require the delivery of a prospectus IV require that the issuer file quarterly reports of sales of the issue A. I and II only B. III and IV only C. II, III, IV D. I, II, III, IV

D

Which of the following information would NOT be found in a registration statement for a security that is going to be registered by qualification in a State? A. Current equity and debt capital of the issuer B. Description of issuer's business, product lines and competitive environment C. Use of proceeds of the offering D. Analysis of company profitability as compared to industry norms

D

A federally covered security is define as one that is

Exchange listed NASDAQ listed Senior Security Sold to qualified purchasers Sold in exempt transactions specified by the securities act of 1933

A fixed annuity is considered to be ____________

Insurance

When are offers of pre-organization certificates exempt under the act?

No commissions are paid for soliciting potential subscribers The number of subscribers is limited to 10 persons No payment is made by any subscriber.

T/F: Advertisements are permitted for offers of per-organization certificates

True

T/F: When the SEC registration becomes effective, following registration by coordination, the state registration is automatically effective as well

True