Series 66 Key Terms
2 types of Agents
1. one who represents a B-D 2. one who represents an issuer of securities
ABC Test
1. provides Advice about securities 2. provides these services as a Business 3. receives Compensation for these services
NASAA
North American Securities Administrators Association responsible for updating the USA, organized in 1919 and is the oldest international organization devoted to investor protection. comprised of 67 state, provincial, and territorial securities Administrators.
State
USA includes a state, commonwealth, territory, or possession of the US (including DC and the commonwealth of Puerto Rico)
USA
Uniform Securities Act
Broker-Dealer
a person in the business of effecting transactions in securities for the accounts of others or for its own account
Investment Adviser Representative
any partner, officer, director, or other individual who is associated with an IA and: - makes recommendations or gives advice regarding securities - manages accts or portfolios of clients - determines which recommendations or what advice should be given - solicits, offers, or negotiates the sale of investment advisory services - supervises employees who perform any of these functions
Investment Adviser
any person (usually a firm) that, for compensation, engages in the business of providing others with securities-related advice, reports, or analysis. must satisfy all 3 parts of the ABC test
Issuer
any person who issues or proposes to issue any security. includes the US, state, local or foreign governments, corps, and partnerships
Person
defined as any legal entity that's not deceased, is not a minor, and is not mentally incompetent. under USA, the term may include individuals, corps, partnerships, sole proprietorships, issuers, and state Administrators (both the office and the individual)
Exempt
if a security is exempt, then it's not required to be registered with a regulator
Non-Exempt
if a security is non-exempt, it may be subject to registration (cannot offer unregistered, non-exempt securities through solicitation)
Security
includes, but is not limited to, common stock, bonds, option contracts, and variable annuities
Agent of a Broker-Dealer
non-clerical individual who represents a B-D in effecting securities transactions. salespersons of B-Ds who effect transactions are considered agents and must be registered.
Agent of an Issuer
non-clerical individual who represents an issuer in effecting securities transactions involving the issuer's securities with the public
Administrator
the state securities regulator (more commonly known as the state Administrator) is the person responsible for not only administering and enforcing the securities laws in a state, but educating investors as well