AD Series 63 2nd chapter
Which of the following is not considered an exempt security according to the USA?
15-year Mexico City bond
According to the USA, which of the following is considered a security?
A call option on a corn future
When a financial product's cash value or return is based upon the performance of a separate account, it would be considered:
A security
The owner of several barrels of whiskey has placed them in a warehouse and pays the warehouse a storage fee. The warehouse has issued a certificate evidencing ownership of the barrels. The owner now wishes to sell their interest in the barrels to an investor and will exchange the certificates for cash. The investor may present the certificates at the warehouse at a later date to gain possession of the whiskey barrels. This transaction represents the sale of:
A security and is subject to regulation by the State Administrator
According to the Uniform Securities Act, which of the following is the correct definition of a non-exempt security?
A security that must be registered under the Uniform Securities Act
XYZ is a firm that has been registered with the SEC for 5 years. XYZ intends to offer securities in the state using registration by filing/notification. When does the registration become effective?
After a specified number of days
When registration is not required with the state, a security is considered to be:
An exempt security
Which of the following best defines a security?
An investment of money in a common enterprise with the expectation of profit from the efforts of a third party
As defined by the Uniform Securities Act, which of the following is an exempt security?
An unsecured $75,000 large corporation promissory note with a top rating that matures in 120 days
Which of the following securities is exempt from registration under the USA but does not fall under the category of federal covered securities?
City of Atlanta, GA revenue bonds purchased by a resident of Savannah, GA
All the following securities would be exempt from the registration requirements of the Uniform Securities Act, except:
Commercial paper issued with a maturity of 300 days by a corporation that carries the highest possible credit rating
All the following are defined as securities, except:
Commodity futures contracts
Which of the following is an exempt security under the Uniform Securities Act?
Common stock of a railroad
What is the name of the period of time during which a new issue cannot be sold to the public?
Cooling-off period
When selling securities directly to insurance companies, the transactions are:
Exempt from state regulatory control
Which of the following statements is incorrect regarding the filing fee for registering securities?
Failure to pay the fee will not delay the offering
What is the first step in the registration process with the State Administrator?
Filing of a registration statement
Which of the following is not a true characteristic of registration by coordination?
Frequently used when only registering in one state
Which of the following are considered securities according to the USA? I Commercial paper II American depositary receipts III Deutsche mark futures IV Defined benefit plan
I and II
State registration is not required by the National Securities Market Improvement Act for which of the following securities? I Securities traded on Nasdaq II Mutual fund shares III Variable annuities IV Private placement to 15 retail persons in the state
I, II, III, and IV
Which of the following securities would not be subject to the registration requirements of the Uniform Securities Act? I A Canadian government bond II An additional stock issue by an NYSE-listed corporation III Common stock issued by a federally chartered credit union IV A bond issued by a regulated utility
I, II, III, and IV
Which two of the following statements concerning exempt securities and the Uniform Securities Act are correct? I Exempt securities are not subject to the antifraud provisions of the Act II Exempt securities are not subject to the registration provisions of the Act III Exempt securities are not subject to the advertising provisions of the Act IV Exempt securities are subject to the advertising filing provisions of the Act
II and III
Which of the following are considered securities under the Uniform Securities Act? I. An annuity contract with an insurance company that will pay a constant dollar amount for the life of the contract. II. A permanent life insurance policy where premiums paid into the cash value are deposited into a separate account. III. A sale of a life insurance policy to a third party, who will receive the face value of the policy upon the death of the insured. IV. The various products offered by an insurance company which will allow the policyholder to decide how the cash value will be allocated.
II, III, and IV
According to the Uniform Securities Act, if an instrument is determined not to be a security, which of the following would be true? I An agent is prohibited from offering it to retail customers II In order to be sold by an agent, a valid securities license is required III An agent does not need be registered in the state to sell it IV The instrument does not need to be registered in the state in order for it to be sold to the public
III and IV
According to the Uniform Securities Act, which of the following must be true for an exemption to exist for an isolated non-issuer transaction? I It must be indirectly for the benefit of an issuer II It must be only 1 transaction III It must be effected through a broker-dealer IV It must be for the benefit of an entity other than the issuer
IV
Which of the following describes a characteristic of a security?
It involves an investment of money in a common enterprise
Which of the following is a lawful representation to a client regarding a registered security?
It is registered with the Administrator
Which of the following statements regarding registration by notification is true?
It is used by companies already registered with the SEC and publicly traded
Which of the following is not included in the definition of a security under the Act?
Money orders
An interest in which of the following is defined as a security under the Uniform Securities Act?
Multilevel distribution agreements
When a fixed annuity payout is in installments, rather than a lump sum, it is:
Not a security
All the following are required when a security is registered by qualification, except:
Notarized copies of all documents filed with the SEC
Under the USA, all the following are considered exempt transactions, except:
Private placement resulting from offers to 35 or fewer non-institutional investors during any 12-month period where commissions are paid
All the following are federal covered securities, except:
Securities listed on a local exchange that is not registered with the SEC
Under the Uniform Securities Act, an agent would not be engaging in an unlawful transaction if they:
Sold unregistered, non-exempt securities in an exempt transaction
Pursuant to the Uniform Securities Act, the Administrator may suspend a registration for all the following, except:
The Administrator discovers, after the registration has gone into effect, that it was not accompanied by the proper filing fee
When using registration by notification, all the following would be included, except:
The name and address of all investors
Which of the following statements concerning unregistered, non-exempt securities is correct?
These securities may be sold to institutions and retail investors, provided the trade is done on an unsolicited basis
Which one of the following meets the definition of a security?
Transferable shares
If an Administrator wishes to deny the registration of a new securities offering, they must identify at least:
Two reasons
A corporation has filed an application to register a new stock offering in Arizona using the qualification method. Under the Uniform Securities Act, when will the registration become effective?
When determined by the Administrator
A distiller places barrels of whiskey into a storage facility where it will age for a number of years before being sold. To finance the cost of storage, the distiller sells legal title to the barrels to an investor. The investor may choose to take physical possession of the barrels, continue to allow the storage facility to hold them, or resell the title to another investor. The evidence of this legal title is called a(n):
Whiskey warehouse receipt
