Unit 8- QBank Questions for Review
II and III
Identify the accredited investors from the list below. I. An individual with a net worth of $800,000 and an annual salary of $150,000 II. A married couple with a net worth of $2 million consisting of net equity in their primary residence of $500,000 and pension plans and other assets worth $1.5 million III. An insurance company IV. A corporation with a net worth of $3 million
bonds issued by the city of Berlin, Germany.
Section 402(a) of the Uniform Securities Act contains a lengthy list of securities that are exempt from the registration and advertising filing requirements of the act. Included in that list would be all of the following except
term life insurance.
The Uniform Securities Act defines all of the following as securities except
A. Debt securities issued by the ABC Savings and Loan Association, organized under the laws of a neighboring state but not authorized to do business in your state
The Uniform Securities Act grants exemptions to the securities of a number of issuers. If you were the Administrator, which of the following securities would not be eligible for an exemption in your state?
Synergy's oil and gas limited partnership units (Synergy, Inc., is the general partner)
Which of the following securities of Synergy, Inc., an issuer whose stock trades on the Nasdaq Stock Market, does not have an exemption from registration with the state?
II and III
Among the many exempt transactions under the Uniform Securities Act are the private placement and the preorganization certificate or subscription. While these two exemptions have several requirements in common, they have which of the following differences? I. The private placement exemption places a limit on the number of sales to retail investors, while the preorganization certificate places a limit on the number of offers to all investors. II. Payment for the purchase may be made in the case of a private placement, while no money changes hands in a preorganization subscription. III. It is expected that noninstitutional buyers of the private placement are purchasing for investment only, while no such requirement exists for the investors in a preorganization certificate. IV. Commissions may be paid on the sale of a private placement to noninstitutional clients, while no remuneration is payable on the sale of a preorganization subscription.
I, II, III, and IV
Under the Uniform Securities Act, certain transactions are exempt from the sales literature and advertising filing requirements. Which of the following would be included in that category? I. Any isolated, nonissuer transaction II. Any sale to a financial institution III. Any transaction by the executor of an estate IV. Any transaction between an issuer and underwriters
a registered security may lawfully be sold in that state.
Under the Uniform Securities Act, it is legal for a brokerage firm to tell a client that
An agent selling U.S. Treasury notes to an individual client
Under the Uniform Securities Act, which of the following would not be considered an exempt transaction?
prior to making the sale.
When a new issue of common stock is registered under qualification, the Uniform Securities Act states that the Administrator may require an agent to present the prospectus for the issue to the offeree
II and III
Which of the following are exempt securities under the Uniform Securities Act? I. Common stock, not listed on any regulated exchange, purchased by an open-end investment company registered under the Investment Company Act of 1940 II. Preferred stock issued by an insurance company authorized to do business in this state III. Municipal bonds issued by Toronto, Ontario IV. Private placements
