Series 66 Chapter 1 Exam Questions
According to the Uniform Securities Act, which of the following are defined as securities? I. U.S. Government bonds II. Limited partnership interests III. certificates of deposit on a security IV. shares of stock issued by a corporation [A]All choices [B]I, II, III only [C]III, IV only [D]II, IV only
A All choices offered are classified as securities under the Uniform Securities Act
An investment adviser manages a portfolio with AUM of $125 million. Due to significant market disruption the AUM falls to $85 million by the end of the year. As a result, which of the following must the investment adviser do? [A]Withdraw its federal registration as an investment adviser. [B]Freeze all customer withdrawals until AUM stabilize. [C]Solicit new customers until amount of assets under management level reaches at $90 million. [D]Renew its registration with the SEC.
A An investment adviser that manages an investment portfolio with assets under management (AUM) of $110 million or more must register with the SEC. However, if the AUM falls below $90 million the adviser must withdraw its federal registration unless an exception exists.
You work at a broker-dealer. One of the agents at your broker-dealer gets a phone call from a prospective client who wants the agent to make an offer of sale on a security that the agent cannot offer. The agent tells the prospective client that he cannot make an offer of sale but that he will accept an offer to buy. According to the Uniform Securities Act, the agent [A]has technically offered to sell the security. [B]has not technically offered to sell the security. [C]has technically offered to sell, but only if the client is given a prospectus. [D]technically offered to sell but only if the agent accepts payment for the security.
A Any solicitation of an offer to buy is considered to be an "offer" under the U.S.A. Because the agent has informed the prospective client that he will accept an offer to buy, the agent has "offered" to sell the security.
An 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.
A 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).
Which of the following would be considered individual investors? I. A retired public employee, collecting retirement from a pension and managing a Traditional IRA with a broker-dealer firm. II. An individual currently employed by a large corporation who speculates with discretionary funds in a personal account held at an online broker-dealer. III. A broker-dealer firm that places large orders with an affiliate to fulfill orders for unspecified clients. IV. An investment company that offers mutual funds to clients. [A]I and II only [B]I and IV only [C]I, II, and IV only [D]I, II, III, and IV
A The definition of an individual is an important distinction. Generally, firms and individuals need not register if they are only doing business with financial institutions. However, if a firm or individual is doing business with individual investors, generally that firm or individual will be required to register in all states where they do business. Any firm or agent working with individuals, which would include public and private sector employees, would be required to register in states where they do business unless the firm or agent qualifies for an exemption.
In regards to the Uniform Securities Act, which of the following statements is/are true? I. A broker-dealer's primary business is effecting securities transactions for clients or for the broker-dealer's own account. II. A broker-dealer may be either an individual or a firm. III. A broker-dealer may not also be registered as an investment adviser. [A]I and II [B]I and III [C]II and III [D]I, II, and III
A Under the Uniform Securities Act, a broker-dealer means any person engaged in the business of effecting transactions in securities for the accounts of others or for his own account.The Uniform Securities Act uses the term "person" within the definition of a broker-dealer, and the definition of "person" can include both individuals and business entities (firms).A broker-dealer is not automatically also registered an investment adviser when they register as a broker-dealer, but it is false to state that a broker-dealer may "not" also be registered as an investment adviser. Many broker-dealer firms are also registered as investment advisory firms.
According to the Uniform Securities Act, which of the following is a federal covered security? [A]Pennsylvania state bonds offered outside of Pennsylvania [B]A fixed annuity [C]A futures contract [D]Securities issued by a non-profit organization
A Under the definition of federal covered security municipal bonds (Pennsylvania) offered outside the state of issue are included whereas the other choices are NOT federal covered.
All of the following would be defined as a security under the Uniform Securities Act except: [A]bank note [B]precious metals [C]variable annuity [D]warrant
B 'A', 'C', and 'D' are securities. Precious Metals would be classified as a commodity and not a security.
The term "Investment Adviser" includes: [A]A person who publishes a financial newspaper with a paid circulation. [B]Anyone who directly or indirectly gives financial advice to clients for compensation. [C]A lawyer who gives investment advice incidental to the practice of his profession. [D]A person who acts as an agent for a bank or trust company.
B An Investment Adviser is anyone who receives compensation for giving investment advice to clients.
All of the following would be considered an offer or sale of a security under the Uniform Securities Act except: [A]the disposition of an interest in a security for value [B]a bona fide pledge [C]a purported gift of assessable stock [D]a bonus of one share of common stock given on account of the purchase of a corporate debenture
B Any bona fide pledge or loan is NOT considered to be a sell or sale.
Under the Uniform Securities Act a "sale" would include which of the following? I. Receipt of a stock dividend II. A gift of securities of stock subject to future assessments III. A pledge of securities as loan collateral IV. Receipt of rights to buy another security [A]I & III [B]II & IV [C]I, II & III [D]I, II, III, IV
B Any contract of sale or contract to sell a security for value would be considered to be a Sell or Sale. This includes receiving a security as a bonus for buying another security, receiving rights or warrants to buy another security, and a gift of assessable stock. Receipt of a stock dividend or pledging securities as collateral for a loan would not be considered to be a sell or sale.
According to the Securities Act of 1933, which answer best describes what happens when a security is considered a federal covered security? [A]When a security is considered federally covered, it becomes an eligible investment for an ERISA pension plan. [B]When considered a federal covered security, the filing of registration of the security by the issuer is only necessary with the SEC. [C]When considered a federal covered security, a state's Administrator has a decreased amount of authority pertaining to review of the security during an offering in that state. [D]When considered a federal covered security, rating agencies automatically rate such securities in the top tier of their rating systems.
B Federal covered securities are covered under federal law (the Securities Act of 1933), and they must register with the SEC. Since the federal law preempts state law, states are not permitted to require registration of these securities. The Administrator of a state would still have the power to review the security for certain violations (fraud and deceit). Rating agencies take many factors into consideration and being federal covered does not automatically raise a security's rating. ERISA plans invest in many different securities.
Which of the following characteristics of a federal covered adviser separate a state-level investment adviser from a federal covered investment adviser, according to both state and federal law? I. The firm has registered under the Investment Advisers Act of 1940. II. The firm has registered in multiple states. III. The firm advises multiple investment companies registered under the Investment Company Act of 1940. IV. The firm only provides advice about U.S. Government Securities. [A]I and II [B]I and III [C]II and III [D]II and IV
B In order to meet the definition of a Federal Covered Adviser, a firm must be registered with the SEC as a Federal Covered Adviser. Included in the definition of a Federal Covered Adviser are IA firms that provide advice to registered investment companies (companies registered under the Investment Company Act of 1940), and IA firms that manage assets totaling more than $25 million (mandatory SEC figure increased to $110 million with Dodd-Frank, but new numbers are not necessarily reflected in exam due to legal disputes between states and feds). Firms registered in multiple states do not automatically meet the definition of a Federal Covered Adviser. Also, firms that only provide advice on US Government Securities are exempt from registration under the Investment Advisers Act of 1940.
Jack is not registered as an agent of a broker-dealer but in talking to potential clients makes an untrue statement with regard to a security he is trying to offer to the potential client. Which of the following is true with regard to Jack's behavior? [A]Jack is in violation of the Uniform Securities Act if the client decides to purchase the security being offered. [B]Jack is in violation of the Uniform Securities Act. [C]Jack is not subject to the Uniform Securities Act. [D]Jack is not subject to the Uniform Securities Act if the client decides to purchase the security from someone else.
B In the USA's definition of "Person" it states that "any person" is in violation of the Act if they make any untrue statement of material fact, therefore "B" is the best answer.
Under the Uniform Securities Act, which of the following are NOT included in the definition of a "security"? I. Certificates of Interest II. Fixed annuities III. Real Estate Investment Trusts IV. Endowment policies [A]I & III [B]II & IV [C]I, II, & III [D]I, II, III, IV
B In the USA, Certificates of Interest and Real Estate Investment Trusts ARE included in the definition of a security. Endowment Policies and Fixed Annuities are NOT included in the definition of a security. Endowment Policy is a specialized insurance product that acts like a savings plan and can be used to meet specific goals like a child's college education.
Under the Uniform Securities Act, which of the following would be included in the definition of a broker-dealer? I. A firm, who for compensation, directly engages in the business of advising others as to the value of securities. II. A firm who engages in the business of effecting transactions in securities for the accounts of others. III. A firm who engages in the business of effecting transactions in securities for the firm's own account. IV. A firm, who for compensation, engages in the business of advising others as to the value of securities through publications or writings. [A]I & IV [B]II & III [C]I & III [D]II & IV
B The USA's definition of Broker-dealer states that a broker-dealer is any person in the business of effecting transactions in securities for the accounts of others or for its own account.
According to the Definitions listed under the Uniform Securities Act, which of the following is a broker-dealer? [A]Any person who represents a broker-dealer or issuer in effecting or attempting to effect purchases or sales of securities. [B]Any person engaged in the business of effecting transactions in securities for the account of others or for his own account. [C]Any person who, for compensation, engages in the business of advising others, either directly or through publications or writings, as to the value of securities or as to the advisability of investing in, purchasing, or selling securities. [D]Any person who issues or proposes to issue any security.
B The Uniform Securities Act defines a broker-dealer as any person engaged in the business of effecting transactions in securities accounts for the account of others or for his own account. The person representing the broker-dealer would be an agent, not a broker-dealer. The person engaged in advising others would be an investment advisory firm. The person issuing or proposing to issue securities would be an issuer.
Under the Uniform Securities Act, if an investor has received warrants to purchase additional shares of common stock, the receipt of those warrants by the investor would: [A]be considered a gift. [B]be considered a sale. [C]be considered a loan. [D]be considered unethical.
B Under the USA's definition of "sell" or "sale," when an investor receives warrants from the issuer after they purchase another security, receipt of the warrants would be considered a sell or sale, because the only way the investor got them was first buying the other security. Receipt of warrants when the investor purchased another security, such as a debenture, would NOT be defined as a bona fide gift.
A broker-dealer firm has no other clients and no place of business in State X. The broker-dealer would have to register in State X if they had which of the following as a client in State X? [A]Investment Companies [B]A client with $1,000,000 under management with the Firm [C]Banks [D]Profit-sharing Plans
B Under the USA, it is unlawful for a firm to transact business in a state as a broker-dealer unless it is registered in the state or exempt from registration. The exemption applies to broker-dealers who sell exclusively to sophisticated institutional investors including registered investment companies. If a broker-dealer had a client with $1,000,000 under management, the firm would have to be registered, because this client does not fit into any of the exemptions.
Under the provisions of the Uniform Securities Act, an individual representing an issuer is not an agent if the issuer is I. a government. II. an insurance company. III. a bank. [A]I and II only [B]I and III only [C]II and III only [D]I, II, and III
B Under the Uniform Securities Act's definition of an "agent", an individual is excluded from the definition if they represent an issuer in effecting transactions in U.S. Government securities and securities issued by U.S. banks. Insurance companies are not included in the exclusions.
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.
C 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).
Under the Uniform Securities Act definitions, an Agent is any individual who represents a Broker-Dealer in effecting or attempting to effect purchases or sales of securities. This definition refers to employees of a brokerage firm who execute transactions in the purchase or sale of securities to the investing public. Agents are normally compensated [A]A percentage of the profits earned in the account [B]A management fee which is charged annually [C]A commission per transaction executed [D]A portion of the underwriting syndicate's spread
C Agents of broker-dealers are normally paid a commission per transaction executed on behalf of the agent's clients.
Broker-Dealer Inc. is located in State A. Indie is an individual who represents Broker-Dealer Inc. in State B as an independent contractor. In this case, Indie is [A]not considered an agent of Broker-Dealer Inc, because Indie is an independent contractor and not a direct employee of Broker-Dealer Inc. [B]considered an agent of Broker-Dealer Inc, but would not have to register in State B, due to the independent contractor status. [C]considered an agent of Broker-Dealer Inc and both Broker-Dealer Inc and Indie would have to register in State B. [D]considered an agent of Broker-Dealer Inc, but only Indie would be required to register in State B due to the independent contractor status.
C An agent is any individual who represents a BD as an employee or independent contractor in a state. Regardless of whether an agent is considered an independent contractor or a direct employee of a broker-dealer firm, both the agent and the broker-dealer firm would have to be registered in the state or states where business is conducted. Here, both Indie and Broker-Dealer Inc would be required to be registered in State B.
Eric has been acting as an investment advisor and giving investment advice to several individual clients about the securities issued by banks. Eric charges his clients an advisory fee for this advice. Under the definitions of the Uniform Securities Act Eric would: [A]Be required to register as an Investment Advisor because he is calling himself an investment adviser. [B]Be exempt from registration as an Investment Advisor since he is only giving advice about bank securities. [C]Be required to register as an Investment Advisor because he is charging an advisory fee for his advisory services. [D]Be exempt from registration as an investment advisor since Banks are excluded from the definition.
C Banks, publishers, and lawyers whose advice is incidental to the practice of their profession would be excluded from the definition of Investment Advisor but anyone who received compensation for giving advice related to securities would have to be registered as an Investment Advisor. Be careful not confuse the fact that "Banks" are not included in the definition of IA BUT any IA giving advice about investments IN BANKS would have to register if they are receiving compensation.
A broker-dealer has agents who work with individual investors in California. The broker-dealer and all of the agents are located in Arizona. Which of the following registrations are required in this scenario? I. Because the broker-dealer is not located in California, it does not need to register in California. II. Because the broker-dealer does business with individuals in California, it must be registered in California. III. Because the agents are not located in California, the agents do not need to register in California. IV. Because the agents do business with individuals in California, the agents must be registered in California. [A]I and III only [B]I and IV only [C]II and III only [D]II and IV only
C Broker-dealers and agents must register in states where they have offices. Broker-dealers and agents must also register in states where they conduct business with individual investors, regardless of whether or not the firm or the agent has a physical office in that state. In this scenario, both the broker-dealer firm and the agents working for the firm must register in California. Certain exemptions exist regarding this scenario when the firm and agents only deal with financial institutions. However the scenario presented does not have any applicable exemptions.
According to the Uniform Securities Act, a corporation would not be an investment adviser if it: [A]was located outside the state in which the advice was rendered and only charged a fee periodically. [B]charges less than $600 per year in advisory fees. [C]gives advice exclusively on fixed annuity contracts. [D]gives advice exclusively on registered mutual funds.
C Fixed annuity contracts do not fall under the definition of a security according to the USA. The corporation would not be required to be an investment adviser when dealing in fixed annuities only.
Which of the following falls within the definition of "broker-dealer" for purposes of the Uniform Securities Act? [A]A person who, for compensation, engages in the business of advising others, either directly or through publications, as to the value of securities and/or the advisability of investing in securities. [B]An individual who represents an issuer in effecting or attempting to effect purchases and sales of securities. [C]A person engaged in the business of effecting transactions in securities for the account of others or for his own account. [D]An individual employed by or associated with an investment adviser who makes recommendations or renders advice regarding securities.
C If a person, which includes individuals, is engaged in the business of effecting transactions in securities for their account or for the accounts of others, that person or individual would fall under the definition of a broker-dealer under the Uniform Securities Act.
Which of the following represents the level of assets under management at which an investment adviser must register with the SEC? [A]$90 million [B]$100 million [C]$110 million [D]$150 million
C Investment advisers that manage portfolios with assets under management (AUM) of at least $110 million MUST register with the SEC. These would be considered federal covered advisers.
Which of the following is the Uniform Securities Act definition of a "guarantee"? [A]Guaranteed means any guarantee, by an issuer, investment adviser, or broker-dealer. [B]Guaranteed means that regardless of actual performance, the client will, at a minimum, receive their principal back. [C]Guaranteed means guaranteed as to payment of principal, interest, or dividends. [D]Guaranteed means that regardless of actual performance, the client will, at a minimum, receive their principal and the guaranteed return.
C The Uniform Securities Act definition is, "Guaranteed means guaranteed as to payment of principal, interest, or dividends."
According to the Uniform Securities Act, exclusions from the definition of broker-dealer include: I. an issuer II. a person that has a place of business in a state and only does transactions in securities with financial institutions III. agents for the broker-dealer IV. agent for an issuer [A]I [B]I, II, IV [C]I, III, IV [D]I, IV
C The definition of a broker-dealer under the Uniform Securities Act specifically excludes choices I, III, and IV. Choice II would have to be registered as a broker-dealer since they have a place of business in the state.
Under the Uniform Securities Act, a person who, for compensation, engages in the business of advising others, either directly or through publications, as to the value of any securities or as to the advisability of investing in any type of securities is defined as: [A]An agent [B]A publisher [C]An Investment Adviser [D]A broker-dealer
C Under the USA, a person who, for compensation, engages in the business of advising others either directly or through publications as to the value of any securities or as to the advisability of investing in any type of securities, including Government securities, is defined as an Investment Adviser. Remember that the 1940 Act has an exclusion for advisers who only work with US Government Securities, but the USA does NOT have the same exclusion.
An individual who represents an issuer in effecting transactions in an interest in a limited partnership would be defined as which of the following? [A]A registered investment adviser [B]A registered broker-dealer [C]An agent of an Issuer [D]An Investment Company
C Under the Uniform Securities Act, an individual who represents an issuer which is effecting transactions in the sale of interests of a limited partnership would be considered an agent.
An individual working at a broker-dealer firm accepts orders and executes orders for limited partnership interests in oil and gas programs. The Uniform Securities Act states which of the following? [A]This individual must be registered, because all employees at a broker-dealer firm are required to be registered if they have any contact, clerical or otherwise, with clients. [B]This individual need not be registered, because limited partnership interests are not considered "securities" under the Uniform Securities Act. [C]This individual must be registered, because limited partnership interests are considered "securities" under the Uniform Securities Act. [D]This individual need not be registered, because the individual is only dealing with one type of security and therefore qualifies for an exemption.
C Under the Uniform Securities Act, certificates of interest in an oil and gas program are considered to be "securities". Any time that an individual is accepting orders and executing orders for "securities", such activities will require registration under the Uniform Securities Act. Individuals do not need to be registered if they have clerical contact with clients. There are many scenarios where an assistant to an agent, or a secretary at the firm may be in contact with clients, but do not need to be registered under the Uniform Securities Act. There is no exemption related to the number of products/securities an agent sells. In other words, even if only dealing with one type of security under the Uniform Securities Act, an agent must be registered.
According to the Uniform Securities Act, "person" may refer to: [A]only an individual. [B]only an individual or a partnership. [C]almost any entity. [D]only an individual, a partnership, a corporation, or an association.
C Under the Uniform Securities Act, the definition of "person" is very broad and includes almost any type of entity.
The definition of "broker-dealer" in the Uniform Securities Act would properly apply to [A]a bank that is state-chartered and provides services to other financial institutions. [B]a company which, as part of business operations, issues securities to the public. [C]a person who is in the business of advising others about securities for compensation. [D]a firm that is in the business of effecting securities transactions for other peoples' accounts.
D A firm that is in the business of effecting securities transactions for the accounts of others is functioning as a "broker" within the definition of "broker-dealer." A bank is specifically excluded from this definition. Investment Advisers are not broker-dealers (The same firm can be both a broker-dealer and an adviser, but would have to be providing both services).
When can an agent represent more than one broker-dealer? [A]Permission is received from only one of the broker-dealers. [B]At any time, permission is not required from either of the broker-dealers. [C]Permission is received from the Insurance Commissioner. [D]Generally, this is a prohibited practice.
D A person may not represent more than one broker-dealer at the same time. The supervisory requirements would become too complicated if a person carried dual registration.
According to the Uniform Securities Act, the definition of "fraud" would include which of the following? I. fraud pertaining to federal securities statutes II. fraud pertaining to states securities statutes III. common law deceit [A]II only [B]I, II [C]II, III [D]I, II, III
D All choices offered are included in the Uniform Securities Act's definition of "fraud".
Which of the following activities may an applicant for registration as an agent of a broker-dealer perform while their application is still pending? [A]They may engage in unsolicited order execution of securities. [B]They may engage in the execution of limited partnership orders which are exempt from state registration. [C]They may engage in the sale of mutual funds as long as it is without compensation. [D]They may engage in the sale of fixed annuity contracts.
D An applicant for registration as an agent of a broker-dealer may not perform any of the functions of an agent until the registration is accepted. This applicant may sell fixed annuity contracts because these contracts are issued by insurers and are not considered securities for broker-dealer purposes.
Which of the following would NOT be considered a "Sale" under the Uniform Securities Act? I. A grandfather gives his grandson 100 shares of common stock for his 21st birthday. II. A customer opens a margin account and pledges stock in the account to buy on margin in the account. III. A company in bankruptcy is re-organizing and shares of stock are exchanged for another security in this process. IV. 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
D 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 individual represents the Canadian government and its provinces when the government and provinces are issuing securities and effecting transactions related to the issue of these securities. When it comes to the regulations and definitions of the Uniform Securities Act, which of the following is TRUE? [A]The actions of the individual would be those of a broker-dealer, and the individual would be required to register as such. [B]The actions of the individual would be those of an agent, and the individual would be required to register as such. [C]The actions of the individual would be those of a broker-dealer, but the individual would qualify for an exclusion due to the issuer/securities. [D]The actions of the individual would be those of an agent, but the individual would qualify for an exclusion due to the issuer/securities.
D Individuals who represent issuers in the distribution of securities and effect transactions in such securities typically fall under the definition of an "agent" for purposes of the Uniform Securities Act. In certain cases, these individuals qualify for an exclusion or exemption from the definition of "agent" and would not have to register. Representing the Canadian Government or a Canadian Province would allow the individual to qualify for an exclusion. Exclusions are limited, however, to those representing US Government and Municipal Securities, Canadian Government/Province Securities, Bank Securities, Promissory Notes at 9 months, and certain Investment Contracts related to employee stock plans. Remember that insurance securities and federal savings and loan associations do NOT allow the individual to qualify for the exclusion from the definition of agent.
Under the Uniform Securities Act, an investment adviser must be registered in order to provide investment advice as to the value of securities. Giving advice about which of the following would NOT require that the person be registered as an IA? [A]Rights and Warrants on common stock [B]Investment Contracts [C]An interest in a profit-sharing plan [D]Fixed Insurance and/or Endowment Policies
D Investment advisers are required to be registered if they give advice about the value of or investing in securities. Of the choices offered, only Insurance and/or Endowment Policies are NOT included in the definition of a security. Therefore the IA would not be required to be registered as an IA to talk about fixed insurance products and/or endowment policies.
Under the Uniform Securities Act, which of the following would NOT be an offer or a sale? [A]A contract of sale for a security [B]A gift of assessable stock [C]The sale of a warrant [D]Negotiations for a merger
D Negotiations could result in an offer to sell or an offer for sale, but the "negotiation" of a deal is not an offer.
A broker-dealer, with its place of business being in New York, places an ad in the Wall Street Journal. The Journal is freely circulated in all fifty states. Which of the following is true? [A]An offer is being made in New York. [B]An offer is being made in every state but New York. [C]An offer is being made in all fifty states. [D]No offer is being made.
D Since 2/3rds of the offering is outside of NY, it would not be an offer.
All of the following persons are included in the definition of an "investment adviser representative" under the Uniform Securities Act except: [A]Someone who manages client's accounts and portfolios while employed by an investment adviser [B]Someone who provides investment advice to clients while employed by an investment adviser [C]Someone who receives compensation for transactional business [D]Someone who is employed by an investment adviser as a clerk or receptionist
D The Uniform Securities Act defines an investment advises representative as an individual who renders securities advice, manages client's accounts, or portfolios is employed by an investment adviser. Someone who is employed as a clerk or receptionist is excluded from the definition.
According to the Uniform Securities Act, the definition of agent includes: I. a person who effects securities transactions where no commission are paid. II. a person affiliated with an insurance company handling the sale of a new security. III. a person who sells registered securities. IV. a person who sells securities listed on a national exchange. [A]I, III [B]I, II [C]II, III, IV [D]All
D The definition of Agent includes all four choices since each involves a securities transaction. Although choice I is misleading, it is correct because the definition does not directly address "commissions being paid" as a requirement of being an agent.
According to the Uniform Securities Act, an Agent is any individual who represents a Broker-Dealer or an Issuer in effecting or attempting to effect purchases or sales of securities including all of the following except: [A]Common stock [B]Right and Warrants [C]Certificate of Interest in a Limited Partnership [D]Securities issued by a State Bank
D Under the Uniform Securities Act, an Agent is any individual who represents a Broker-Dealer or an Issuer in effecting or attempting to effect purchases or sales of securities unless the securities or transactions are exempt. Securities issued by a State Bank are included in the list of exempt securities under the Act.
Under the Uniform Securities Act, the definition of investment adviser representative includes all of the following except [A]Sales representatives [B]Managers of sales representatives [C]Directors who determine which securities recommendations will be made to clients [D]Clerks
D Under the Uniform Securities Act, the definition of an investment adviser representative does not include receptionists or clerks.
