Securities Registration Quiz I (50)

Which of the following securities can be registered by qualification in a State? I Limited Partnership II Fractional Interest in an Oil and Gas Program III Certificate of Deposit for a security IV Real Estate Investment Trust A I and IV only B II and III only C I, II, III D I, II, III, IV

D

Who can file an application to register securities

The Issuer The Broker-Dealer The person on whose behalf the offering is being made

A registration statement which has been filed for a security: I is effective for 1 year II remains in effect if the issuer cancels the sale of the issue III remains in effect if a "stop" order is issued by the Administrator A I only B I and II C II and III D I, II, III

A

A customer of a broker-dealer is a sophisticated investor and is interested in purchasing the shares of XYZZ Corporation, a company that has recently gone public and is thinly traded in the Pink OTC Market. The customer contacts his agent to buy the shares, but the agent does not see any shares offered in the market so he contacts one of the officers of the company to see if that officer has shares that she wishes to sell. The officer agrees to sell some of her shares under Rule 144, so the broker recontacts the customer to tell him that he has found the shares that the customer wishes to buy. In this scenario, the agent has: A violated the Uniform Securities Act B made an offer to sell to the customer C made an offer to buy to the customer D effected an exempt transaction with the officer

B

The gift of an assessable security is defined under the Uniform Securities Act as a(n): A exempt transaction B sale of a security C unsolicited transaction D issuer transaction

B

Under the Uniform Securities Act, the State Administrator has the power to deny registration to a: A Federal Covered Adviser B security issued by a not for profit organization C security issued by a bank in the business of giving investment advice for compensation D security issued by an insurance company organized under the laws of the state

B

All of the following statements are true about unsolicited customer transactions effected through a broker-dealer EXCEPT: A the Administrator may require that the customer acknowledge the transaction with a written statement B the transaction is exempt under State law C no commissions may be paid to the broker effecting the transaction D the transaction is defined as a "non-issuer" transaction

C

If an issuer offers a Federal Covered security in a State, the State Administrator may require the issuer to: I register the issue in the State II pay a filing fee in the State III file documents relating to the issue in the State A I only B II only C II and III D I, II, III

C

Which of the following is NOT a federal covered security? A An offering made over-the-counter of $250,000,000 of 10% convertible debentures of ACME Corporation, a company whose common stock is listed on the American Stock Exchange (NYSE American) B A private placement of $250,000,000 of debt backed by automobile finance company receivables sold to investment managers that are qualified purchasers C An offering of $250,000,000 of General Obligation bonds by the City of New Orleans to the residents of Louisiana D An offering of $250,000,000 of common shares of a mutual fund that will be offered to the general public

C

All of the following are exempt securities under the Uniform Securities Act EXCEPT: A U.S. Government bonds B Investment grade commercial paper maturing within 9 months C Bank issues D Corporate stocks

D

An issuer has filed a registration statement in a State for a new issue of securities that is effective and sale of the issue has started. The issuer finds that there is great demand for the offering and wishes to increase the number of shares being issued. In order to do this: I a new registration statement must be filed with the State, if it is within 6 months of the date of sale II an amendment must be filed, as long as it is within 6 months of the date of sale III an additional filing fee must be paid, but no late registration fee is required IV both an additional filing fee and a late registration fee must be paid A I and III B I and IV C II and III D II and IV

D

Filing of advertising with the Administrator is required for which one of the following? A U.S. Government securities B Municipal securities C Investment company securities D Options Clearing Corporation securities

D

If a registration is found to be incomplete, which of the following statements are TRUE? I The issuer must send the Administrator a complete new filing II The issuer must send the Administrator an amendment to the original filing III A new consent to service of process is required IV A new consent to service of process is not required A I and III B I and IV C II and III D II and IV

D

Which of the following securities are EXEMPT under the Uniform Securities Act? I Industrial Loan Association Issues II Insurance Company Issues III Federal Credit Union Issues IV Bank and Savings and Loan Issues A I and II only B III and IV only C I, III, and IV D I, II, III, IV

D

Which of the following is a non-exempt security under Uniform State Law? A NASDAQ listed issues B Church bonds C Equipment Trust Certificates D Corporate bonds offered to fewer than 5 investors

D Corporate bonds offered to 5 or fewer investors would qualify as an exempt transaction; not as an exempt security.

T/F: If the issuer cancels the sale of the issue, the registration becomes void. However, if a stop order is entered, the registration will still remain in effect and the sale of the issuer will continue.

False

T/F: Municipal bonds are NOT an exempt security and count as a federally covered security

False

T/F: Corporate stocks are EXEMPT under the uniform securities act and thus must be registered in the state

False

True or False: Unsolicited customer transactions effected through a broker-dealer are NON-EXEMPT under State law.

False

True or False: The Administrator must, within 5 days after receipt of a written request from any person specified in the order, set down the matter for a hearing.

False 15 days

True or False: Along with US Government, Municipal, and Investment company securities, Options Clearing Corporation securities are exempt from the filing of advertising with the state

False Options Clearing Corporation securities are NOT exempt from the filing of advertising with the state

T/F: An application to register securities may ONLY be filed by the Broker Dealer and the Issuer

True

T/F: Federally covered securities are registered at the federal level and are not required to be registered in each state

True

T/F: Registration by qualification can be used for ANY security

True

True or False: Corporate bonds of issuers that're exchange listed are exempt securities

True

An application to register securities may be filed by the: I Broker-Dealer II Agent III Issuer IV Investment Adviser A I and III B II and IV only C I, II, III D I, II, III, IV

A

The effectiveness of a registration may be summarily postponed or suspended as long as the Administrator: I upon entry of the order promptly notifies each person specified II files a copy of the order in each State where the security has been offered III gives the reasons for the postponement or suspension IV within 5 days after the receipt of a written request from a person that is the subject of the order, sets the matter down for a hearing A I and III only B II and IV only C I, III and IV D I, II, III, IV

A

What is an offer/offer to sell?

Any attempt to offer to dispose of a security, or a solicitation of an offer to buy a security or an interest in a security, for value.

True or False: If no hearing is requested and non is ordered by the administrator, the order remains in effect until it is modified or vacated by the administrator

True

What're the exempt securities under the Uniforms Securities Act?

US Government Bonds Bank Issues Commercial paper maturing w/in 9 months and rated in the 3 highest categories