green light exam 2 study guide with complete solutions
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Course
Green light
Institution
Green Light
green light exam 2 study guide with
complete solutions
Which of the following statements is NOT TRUE concerning agency cross trades? -
Answer️️ -a client may provide verbal authorization for up to 10 days is NOT TRUE.
An agency cross transaction is one in which the adviser acts as broker fo...
green light exam 2 study guide with
complete solutions
Which of the following statements is NOT TRUE concerning agency cross trades? -
Answer✔️✔️-a client may provide verbal authorization for up to 10 days is NOT TRUE.
An agency cross transaction is one in which the adviser acts as broker for both sides of
the trade. Advisory clients must provide written consent before an adviser may affect
the first agency cross transaction. This is a blanket consent and covers future agency
cross transactions until the client revokes consent, which can be done at any time.
Which of the following situations would constitute an assignment of an investment
advisory contract requiring client approval?
The investment adviser is a partnership with three partners, one of whom dies
The investment adviser is a partnership with seven partners, three of whom retire, while
another dies
The investment adviser changes from a sole proprietorship to a LLC
A corporation acquires 60% of the assets of the broker-dealer parent of an investment
adviser - Answer✔️✔️-answer is II, III, and IV.
If the adviser is organized as a partnership, the death, resignation or retirement of a
**minority** of the partners does not constitute a change of control or management—
roman numeral (I). However, the investment adviser does need to notify its clients if the
composition of the partnership changes.
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