Definition of "persons" under the Uniform Securities Act correct answers Governments, government agencies, human beings
What is not considered a person under the USA? correct answers An equitable interest in a corporation
Terms that describe persons who are human beings under the USA correct ...
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Definition of "persons" under the Uniform Securities Act correct answers Governments,
government agencies, human beings
What is not considered a person under the USA? correct answers An equitable interest in a
corporation
Terms that describe persons who are human beings under the USA correct answers natural
persons, individuals
The model law that most states have adopted as the basis for their securities regulations correct
answers Uniform Securities Act (USA)
Definition of the term "state" under the USA correct answers any state, territory, or possession of
the United States
All persons who are state securities-registered must renew their registrations each correct
answers Dec 31
How state registration fees are assessed under the USA correct answers annually, not pro-rated
for partial years
Upon the merger of a broker-dealer with another firm, when the state registration fee is due
correct answers A fee is assessed on the next Dec 31; the surviving firm receives a carry-over
registration and does not pay a fee at the time of the merger
Under the USA, agents of two firms that merge retain their registration and are associated with
correct answers the successor firm
The type of client notification required when a registered person changes his/her firm association
correct answers None. Information does not need to be sent to clients. However, the change must
be promptly updated with the Administrator.
When a registered person must notify the Administrator about any changes to information in
his/her registration, such as firm association or address correct answers Promptly
State registration requirements for fingerprints and character affidavits consists of correct
answers no requirements; fingerprints and character affidavits are not required with registration
at the state level
The type of convictions that can result in statutory disqualification of a state registration correct
answers conviction for any felony in the past 10 years and conviction of any securities- or
money-related misdemeanor in the past 10 years
,Regulatory action that can result in a statutory disqualification from registration correct answers
An injunction by the SEC, state securities Administrator, or self-regulatory organization
During an application for securities registration, a personal bankruptcy must be reported if it
occurred during correct answers the past 10 years; bankruptcy is not a statutory disqualification,
but it must be disclosed
When a personal bankruptcy can be grounds for denying or revoking a securities registration
correct answers when the applicant is currently insolvent (bankrupt)
The period during which a state Administrator may suspend or revoke a registration based on
information submitted on an application correct answers only during the first 90 days of
registration (after 90 days, inaccuracies in the application cannot be used to justify a denial of
registration)
When an application for securities registration normally become effective correct answers noon,
30 days after filing (however, the Administrator may accelerate or delay effectiveness)
The time period during which an agent can continue doing business with a client under an
existing state registration, after that client moves to a new state correct answers 30 days
The type of state registration or renewal application that must include a consent to service of
process correct answers only the initial registration, not renewals
The scope of the permission granted by an agent under a consent to service of process correct
answers The agent agrees to accept service on civil actions related to the securities industry. The
consent does not include criminal actions or civil actions outside the industry
The impact of a broker-dealer's registration suspension on its registered employees is correct
answers all registrations of its employees are suspended until the firm's registration is reinstated
The jurisdiction of FINRA in registering Investment Advisors is correct answers None. The SEC
and state register and regulate Investment Advisors
Obtaining state registration with an Administrator means that a broker-dealer has qualified to
correct answers lawfully sell securities in the state of registration
The role of the Administrator in verifying the truth and accuracy of a broker-dealer's registration
filing is correct answers None. The administrator does not imply that the registration is true and
accurate-only that the firm has made sufficient disclosure to sell securities
A broker-dealer can charge a client for a service only when correct answers the service has been
performed (not when it is promised, requested, or contracted)
The situation in which a broker-dealer can charge a client a mark-up is when correct answers it is
selling securities from its own account, acting as a principal
, The situation in which a broker-dealer can charge a client a mark-down is when correct answers
it is buying securities from its own account, acting as a principal
A broker-dealer charges customers mark-ups and mark-downs when trading securities as correct
answers a principal (for its own account)
A broker-dealer can charge customers trading commissions when trading securities as correct
answers an agent (i.e. matching the customer with a buyer or seller on the other side of the trade)
A broker-dealer is allowed to charge a customer both a commission and a mark-up on the same
trade in what circumstances? correct answers Never
A student who sells US Treasury bonds to other students must register as a broker-dealer because
correct answers treasuries are securities. Entities that sell securities in the US must be registered
as broker-dealers, or as registered agent of broker-dealers
A broker-dealers application for securities registration must disclose these employees' salaries
correct answers Never. The application need not include salaries of officers, directors, or
employees
For purposes of meeting registration requirements, firms that offer omnibus accounts to other
broker-dealers are acting as correct answers Securities broker-dealers, not Investment Advisors.
Omnibus accounts are considered brokerage products
For regulatory purposes, offering securities as an employee bonus or inducement to buy goods
and services is considered correct answers a sale of securities - not a gift of securities. As such,
these sales require the giver to be registered as a broker-dealer or agent.
The point in time when a broker-dealer or agent must register in a state, in order to sell securities
to a customer who lives in that state is when correct answers the offer of securities is made (not
when sales are closed). The registration must be effective to offer securities in a state
By SEC rule, the minimum net capital for a full-service (carrying) broker-dealer is correct
answers $250,000
When a broker-dealer's net capital exceeds the amount required under federal law, the maximum
surety bond that a state administrator may require is correct answers Zero (if the firm's net capital
exceeds the federal requirement, the administrator cannot require the firm to post a bond)
The maximum net capital or surety bond that a state administrator can require a broker-dealer to
post is correct answers the amount required under federal law, the Securities Exchange Act of
1934
In calculating a broker-dealer's net worth, the types of assets that should be included are correct
answers financial assets and tangible assets, such as computer equipment and furniture
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