FREE FINANCE AND STUDY GAMES ABOUT 2ND SERIES 63

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FREE FINANCE AND STUDY GAMES ABOUT 2ND SERIES 63

EXAM QUESTIONS

Actual Qs and Ans Expert-Verified Explanation

This Exam contains:

-Guarantee passing score -435 Questions and Answers -format set of multiple-choice -Expert-Verified Explanation Question 1: What are the major categoies of federal covered securities that cannot be regulated by state securities administrators?

Answer:

NYSE securities, ASE securities, CSE, Nasdaq, and several other exchanges. Also, an security = in seniority (rights or warrants) or senior to these securities (bonds or prefer stk), sec reg under 1940 act, gov offers, qual purch (priv purch)

Question 2: material information

Answer:

used by a prospective purchaser to make an informed investment decision. Agents must not delibertly withold information.Question 3: how does an adviser avoid conflicts of interest in using commissions to purcahse research from broker dealers?

Answer:

the SEC requires the adviser to disclose soft-dollar arrangements to their clients

Question 4: t or f when a securities professional registers in a state, he must provide the state administrator a list of all the states in which he intends to register.

Answer:

false

Question 5: exempt

Answer:

To be excused from certain requirements.Question 6: t or f fingerprints for b/d, agents, IA and IAR's do not have to be submitted

Answer:

true

Question 7: who are excluded from being labled an IA in the state

Answer:

IA who have office in another state and only deal with broker/dealer in another or other IA or institutional investors including lg employee bene plans, existing clients on vactaion (snowbirds), fimve or fewer clients int the state,anything else admin say

Question 8: who maintains records for the IA and B/Ds

Answer:

the administrator

Question 9: beefing up a clients net worth

Answer:

fictious accounts so a clients net worth to enable him to engage in margin or options trading.

Question 10: cease and desist order

Answer:

used by Admin whenever it appears to him that any registered person has engaged or is about to engage in any act constituting violations of any provision of this act or rule. Can be ordered with or w/o hearing. (just for person not securities)

Question 11: t or f all information must be given to a buyer about a security?

Answer:

false - USA does not require an agent to provide all info about an investment, but only info that is material to making an informed decision.

Question 12: why is exclusion lost when b/d use wrap fees

Answer:

because the wrap fee includes pmt ofro securities advice.Question 13: Agent or not? A person who effects transactions in muni securities on behalf of a b/d

Answer:

Agent Question 14: t or f an administrator can base a denial of a person's registration solely on lack of experience.

Answer:

false - he cannot - however the admin may choose to reg them as a broker/dealer rather than a investment adviser based on experience.Question 15: t or f any b/d registered in several states is alos going to be registered with the SEC

Answer:

true

Question 16: NASAA

Answer:

North American Securities Administrators Association.

Question 17: is it ever okay to borrow from your clients

Answer:

no, not unless the client is a lending professional, brokder/dealer, an affiliate of the professional or a financial institution engaged in the business of loaning money

Question 18: exempt securities

Answer:

securities that are exempt, ex gov and muni secur, secur of US commercial banks and sav instit or trust co, commercial paper with denom of $50k or > and matures in 9 mor or <, Investment contracts in employeee stock purse plan

Question 19: do commercial banks have to register?

Answer:

no, they are subsidiearies of bank holding companies and do not have tot register b/c they are exempt

Question 20: what is prim role of administrator?

Answer:

to admister the securities laws of the state as well as make rules and issue orders in the pblic interest to ensure a well functioning investment climate to the state

Question 21: assessabel stock

Answer:

stock issued below par for which the issuer or creditors have the right to assess sharehodlers for the balance of unpaid par

Question 22: exempt transactions

Answer:

isolated nonissuer, unsolicited brokerage, underwriter, bankrulptcy, guaradian, and conservator, institutional investor trans, and limited offering trans, preorg certif, existing secur holders, trans by pledges, unit secured, control, rescission offers Question 23: What are considered fraudulent practices with regard to invesstment advice?

Answer:

advising person as to the value of securities, employ devoce pr scheme to defraud, engage in deceit of a person,

Question 24: when is excrow of a security necessary

Answer:

as a condition of registration the Admin may require that a security be placed in excrow if the security is issued to w/in past 3 yrs; at a price grossly different than offering pr, or to any person for a consideration other than cash