Series 65 Missin
Which of the following is excluded from the definition of "security" according to the USA? [A]A futures contract in grains[B]A pre-organization certificate[C]A certificate or interest in a mining title[D]Certificates of interest in profit-sharing agreements
A certificate or interest in a mining title
According to the Uniform Securities Act, which of the following is NOT an Investment Adviser Representative? [A]An associate in an SEC-registered investment advisory firm who has a place of business in the state and manages the account of a single client[B]A clerk employed by a state-registered investment advisory firm[C]A director in a state-registered investment advisory firm who determines specific recommendations for clients[D]A vice president of a state-registered investment advisory firm who supervises employees who solicit clients for the firm
A clerk employed by a state-registered investment advisory firm Persons who provide clerical services only do not have to be registered and are not included in the definition of an Investment Adviser Representative.
Which of the following persons would be included in the definition of an "investment adviser" under the Uniform Securities Act? [A]A financial planner who gives advice on fixed life insurance policies for an hourly fee.[B]A lawyer who gives investment advice as part of his or her estate planning practice.[C]A college professor who gives investment advice to other professors for an established flat fee.[D]An accountant who gives investment advice as part of his or her tax practice.
A college professor who gives investment advice to other professors for an established flat fee. The college professor is not excluded from the definition of an IA as a "teacher" if he or she as advising for a fee. A person is only an IA if he or she gives advice about securities, not life insurance.
All of the following would be considered to be excluded from the definition of an Investment Adviser under the Uniform Securities Act except? [A]An IA who gives advice about bank securities for an advisory fee[B]Accountants whose advice is incidental to the practice of their profession as an accountant[C]A college professor who teaches courses on finance and discusses specific securities during class[D]A bank which charges a fee for advice provided to clients
An IA who gives advice about bank securities for an advisory fee Lawyers, accountants, teachers, and engineers whose advice is incidental to the practice of their profession would be excluded from the definition of Investment Adviser. As well, banks, savings institutions, trust companies, and investment companies would also be exempt, even when charging fees. Publishers of general advice in a newspaper would also be exempt. An IA who received compensation for giving advice related to securities would have to be registered as an Investment Adviser.
Effecting purchases or sales of which of the following would require registration as an agent under the Uniform Securities Act? [A]A Fixed Annuity[B]A Whole Life Insurance Product[C]Units of a Limited Partnership[D]Futures on Corn
Futures on Corn
According to the Uniform Securities Act, which of the following would be specifically excluded in the definition of a broker-dealer? [A]Investment Advisers and Investment Adviser Representatives[B]Accountants[C]Lawyers[D]Issuers
Issuers Of the choices offered the only one that is "specifically" excluded from the definition of broker-dealer is an issuer.
According to the Uniform Securities Act, the definition of "a person" would include: an individual an unincorporated organization a political sub-division of a government [A]I[B]I, III[C]II, III[D]I, II, III
[D]I, II, III Since the Uniform Securities Act uses a very broad definition of "person", all choices offered are included in their definition.
An investment adviser is defined under the Uniform Securities Act to be any person who is compensated for engaging in the business of advising others as to the value of all of the following EXCEPT: [A]an investment contract[B]a fixed annuity contract[C]a certificate of interest in any profit sharing agreement[D]a certificate of interest in an oil, gas, or mining title or lease
a fixed annuity contract The USA defines a "security" to include all of the above except a fixed annuity contract. A fixed annuity contract is not defined as a security.
Under the Uniform Securities Act, which of the following definitions best describes a Broker-dealer? [A]Any legal entity[B]Any individual who represents a firm or issuer in effecting or attempting to effect purchases and sales of securities.[C]Any person engaged in the business of effecting transactions in securities for the accounts of others or for the firm's own account.[D]Any person who, for compensation, engages in the business of advising others as to the value of securities or the advisability of investing in, purchasing, or selling securities.
Any person engaged in the business of effecting transactions in securities for the accounts of others or for the firm's own account. A Broker-Dealer is any person engaged in the business of effecting transactions in securities for the accounts of others or for the firm's own account (Examples include Morgan Stanley and Merrill Lynch).
With respect to securities, the word "Guaranteed" under the Act means: [A]Guaranteed as to performance results.[B]Guaranteed as to price.[C]Guaranteed as to payment of principal, interest, or dividends.[D]Guaranteed as to the accuracy of statements.
Guaranteed as to payment of principal, interest, or dividends. Guaranteed means a guarantee as to the payment of principal, interest, or the payment of dividends.
Which of the following would NOT be considered a "Sale" under the Uniform Securities Act? A grandfather gives his grandson 100 shares of common stock for his 21st birthday. A customer opens a margin account and pledges stock in the account to buy on margin in the account. A company in bankruptcy is re-organizing and shares of stock are exchanged for another security in this process. A broker/dealer loans stock to a customer. [A]I and II only[B]II and IV only[C]I, II, and III[D]I, II, III, and IV
I, II, III, and IV Each of the items described would not be considered a "sale" for purposes of the Uniform Securities Act. The grandfather giving the gift of stock is a bona fide gift. Pledging securities as collateral in a margin account is not considered a sale. Securities exchanged for other securities by a company in bankruptcy would only be considered an exchange, not a sale. A broker/dealer lending stock to a customer would not be a sale, however if this customer then went on to sell the stock short, a sale would have occurred at that point in time.
An IA, who is compensated for their services, must register under the USA if advice rendered relates to which securities listed below? Treasury Bonds issued by the United States of America Bonds issued by a local school district Corporate bonds where the stock of the issuer is listed on the NYSE [A]I only[B]I and II only[C]II and III only[D]I, II, and III
I, II, and III Under the Uniform Securities Act, there are no exemptions from registration related to giving advice on specific securities. Because of this, all IAs must be registered when giving advice on any of the securities listed. In the Investment Advisers Act of 1940, there is a specific exemption for Federal Covered Investment Advisers who solely give advice on Government Securities. Be sure to differentiate between the two acts.
An individual would be considered an "investment adviser" according to Uniform Securities Act regulation if they were compensated for advice relating to which securities? Advice on fixed annuities Advice on Government Securities such as T-Bonds Advice on bank-issued securities Advice on Open End Investment Companies (Mutual Funds)
II, III, and IV only According to the Uniform Securities Act, there are no exemptions from registration for persons giving advice relating to any securities. In other words, an individual, giving advice for compensation, would be required to register when giving advice on anything deemed a security under the Uniform Securities Act, regardless of whether it is an exempt security or involves an exempt transaction. Fixed annuities are not considered securities and would not be included in the list.
According to the Uniform Securities Act, which of the following would be specifically excluded in the definition of a broker-dealer? [A]Investment Advisers and Investment Adviser Representatives[B]Accountants[C]Lawyers[D]Issuers
Issuers Of the choices offered the only one that is "specifically" excluded from the definition of broker-dealer is an issuer.
Agent is best defined by which of the following individuals? [A]One representing a broker-dealer, effecting sales or purchases for that broker-dealer.[B]One who solely performs transactions of covered securities.[C]One who solely performs transactions in securities that are exempt.[D]One who makes a business out of dealing with issuers in securities that are covered.
One representing a broker-dealer, effecting sales or purchases for that broker-dealer. The best answer is one representing a broker/dealer in effecting sales or purchases for that broker/dealer. In each of the other answers, performing transactions is ambiguous (are we effecting, or only entering orders for these transactions). As well, there are cases where a person who represents an issuer in effecting transactions in securities that are exempt or covered may be excluded from the definition of an agent (issuer and broker/dealer exclusions).
You work for the only branch of Johnny's Broker-Dealer which is located in State X. Several of your agents have accounts in nearby State Y. Johnny's Broker-Dealer would only have to license its agents in State Y if clients in State Y were [A]other broker-dealers.[B]government employees of State Y.[C]registered investment advisers.[D]financial institutions or banks.
government employees of State Y. Other broker-dealers, registered investment advisers, and financial institutions such as banks do not warrant the need for licensing in the outside state, in this case State Y. Regardless of who employs them, individuals not falling into any exclusionary list, must be represented by agents that are properly licensed in their respective states.
