Series 65 Part One

The Uniform Securities Act contains a number of exemptions from registration of securities. Which of the following do not qualify for any of those exemptions? 1 A bond issued by a corporation 2 A bond issued by the city of Athens, Greece 3 A bond issued by the province of Manitoba 4 A security issued by a credit union authorized to do business in the state

1 AND 2

Which of the following is considered a sale of securities under the Uniform Securities Act? 1 Redemption of mutual funds shares worth $10,000 2 Dividends of common stock for which no consideration was given for the dividends 3 With the approval of the board of directors, an exchange of common stock for the stock in another company under a merger 4 Disposition of stock for which cash consideration is received

1 AND 4

Which of the following investment vehicles is NOT considered a security under the Uniform Securities Act?

Annuities with a fixed rate of return

As used in the Uniform Securities Act, which of the following entities would NOT be included in the term "institutional investor"?

Any accredited investor

An exempt security or transaction is exempt from the registration requirements and the requirements for filing of advertising and sales literature. It is not exempt from the antifraud provisions of the act.

DO NOT APPLY

State laws provide for exclusions from the definition of investment adviser. Which of the following persons is specifically excluded under the Uniform Securities Act?

IAR - are you an adviser? no

Bryan, an agent registered with a broker-dealer, buys 1,000 shares of XYZ Corp. in his own account. In recommending XYZ Corp. to his customers, Bryan informs them that he believes in the company so much that he put his own money in the stock. This practice is

Not ethical

Which of the following is NOT true regarding the Securities Exchange Act of 1934?

The act bars the use of arbitrage by broker-dealers.

Under the Securities Act of 1933, all of the following must sign a registration statement for a new issue of nonexempt securities EXCEPT

The registration statement, which is an issuer document, must be signed by members of the board, as well as by the CEO and the CFO. It is also signed by the lawyers and accountants representing the issuer who express their opinions on the legal and accounting aspects of the proposed new issue. U4LO3

The Uniform Securities Act would consider which of the following insurance products to be a security?

Variable life insurance

A client of an investment adviser needs a bridge loan and approaches the IA to see if the firm is interested. Because the IA is not in the business of lending money, a special agreement is drawn up specifying the terms of the loan. Under NASAA's Model Rule dealing with Unethical Business Practices of Investment Advisers, Investment Adviser Representatives, and Federal Covered Advisers

the loan could only be made after the advisory contract was terminated

An Administrator may deny or revoke a security's exemption

without a hearing if the issuer is given an opportunity for a hearing after the revocation

All of the following activities comply with the requirements for agency cross transactions EXCEPT

after proper written disclosure, an adviser recommends the transaction to both the seller and the buyer CANT BE BOTH

An investment adviser is required to disclose to a client the amount of compensation received from which of the following third parties? Compensation on the client's transactions executed through a broker-dealer Compensation received from an issuer of a security recommended to the client Compensation received from any nonsecurities products recommended to the client

all

Regarding the use of testimonials in advertising, all of the following are true except

an investment adviser may use a testimonial, but only if it comes from someone who is not an existing client

An individual is currently registered as an agent with a broker-dealer. If the agent would like to offer wrap fee programs through the firm, all of the following statements are correct EXCEPT

it would be an investment advisor (not true)