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Wellcare ACT Mastery Exam Review
Questions and Answers (Verified Answers)
1.Exempt securities must re-establish their exemption annually in order tobe sold lawfully in the state. ANS remember this
2.A material fact is deliberately omitted in a sales presentation because itwas publicly known 4 years ago = PROHIBITED ANS remember
3.A registration statement for new issues of securities under the USA iseffec- tive for more than one year after its effective date ANS if the issuer orbroker/dealer offering the securities has an unsold allotment
4.covering those instances where an investment adviser might act an as
agent for both sides of a trade involving his advisory clients. In order to
perform in this manner, the USA ANS prohibits the IA from making the
recommendation to BOTH sides.
5.16. State securities Administrators can require ANS agents to post a
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surety bond if they have discretion over client funds and securities.
6.Uniform Securities Act imposes certain recordkeeping requirements uponregistered broker/dealers. Among the records that must be retained are allof these EXCEPT ANS unsolicited testimonials from customers.
7.able to split commission with principal under same roof ANS remembethat
8.A person applying for an initial registration as an agent might be asked
to provide all of the following ANS -proposed method of doing business.
-a consent to service of process.
-citizenship information.
NOT REQUIRED; fingerprints
9.According to the Uniform Securities Act, agents may NOT ANS (1) act as
custo- dian of a customer’s funds and securities **
(2)share commissions from the purchase or sale of securities with any
agent not registered as an agent for the same broker/dealer, or for a
broker/dealer under direct or indirect common control.
(3)share in the profits and losses of an account without written consent
of the client and authorization from the employing broker/dealer.
(4)mply that a conservative investment strategy will guarantee a
specific investment result will be achieved.