Term
A broker-dealer is registering a new issue with the Administrator of State A. What information must be sent to the Administrator?
The number of shares
The Articles of Incorporation
The financials
The tax identification number filed with the IRS |
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Definition
The number of shares
The Articles of Incorporation (the charter)
The financials
A tax identification number is not required by the Administrator. |
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Term
| The Uniform Securities Act allows for the splitting of commissions provided that the two agents involved are what and what |
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Definition
| registered in the same state at the same firm |
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Term
| Do advisors to institutional investors need to register if they have a place of business in the state where the institutional client was located? |
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Definition
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Term
| Do advisors to institutional investors need to register if they don't have a place of business in the state where the institutional client was located? |
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Definition
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Term
| If a BD resides in State A, how many clients would they need in State B before they're required to register in State B |
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Definition
| ONE. You can't do any business with a retail investor without registering in their state. |
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Term
| In order for a hedge fund to qualify for a Reg D exemption, it must be offered only to accredited investors, and no more than ____ nonaccredited investors may participate in the offering. |
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Definition
| 35 nonaccredited investors |
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Term
| Accredited Investor definition |
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Definition
- Individual annual income of 200k last two years expecting it to continue
- joint income of 300k expecting it to continue
- net worht of 1 mil |
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Term
| An application for BD registration withdrawal generally becomes effective ___ days after it was filed. |
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Definition
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Term
| The Administrator has _____ after a BD registration is withdrawn to begin revocation or suspension proceedings against the firm. |
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Definition
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Term
| How many persons can participate in an exempt private placement in a 12 month period? |
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Definition
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Term
| How many institutional accounts can participate in an exempt private placement in a 12 month period? |
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Definition
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Term
| When an agent leaves one broker-dealer to work for another broker-dealer, who must notify the administrator? |
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Definition
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Term
| difference between limited and full discretionary accounts |
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Definition
| full means the agent can withdraw funds |
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Term
| when can an agent receive a fee for using his services in a discretionary account |
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Definition
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Term
Investment advisers with no place of business in a state and a limited number of noninstitutional clients need not register
True or False |
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Definition
| True. IAs can deal with up to 5 investors (noninstitutional) without registering in that state |
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Term
| registration of securities by the issuers expire: |
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Definition
| one year from effective date |
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Term
| BD/agent registrations expire |
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Definition
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Term
Under the Uniform Securities Act, which of the following choices is NOT a security?
Non-traded REITs
Stock futures
Keogh Participation Units
Options on currency futures |
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Definition
Stock Futures!
Under the Uniform Securities Act, futures, forwards, currencies, and commodities are not considered securities. Although futures are not securities, options on futures are. While a Keogh Plan is not a security, a participation unit in the plan is defined as a security. A real estate investment trust is a security regardless of how or if it is traded. |
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Term
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Definition
| an investment advisor not an agent |
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Term
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Definition
| An investment adviser registered with the SEC |
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Term
| Who (investment advisers) MUST register with the SEC |
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Definition
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Term
| Who (investment advisers) is generally exempt from SEC registration? |
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Definition
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Term
| If an IA has less than 100mm AUM, why would they need to register federally (what circumstance) |
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Definition
| they do business in a state that wouldn't require them to register. in other words, they'd be otherwise entirely unregistered in a place of business |
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Term
An advisory fee that increases and decreases proportionately
with the investment record of an appropriate securities index
is called a(n): |
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Definition
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Term
| An order ticket must include (3/4) |
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Definition
the client's account number
the price and time at which the order was executed
and the time the order was entered (to the extent feasible). |
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Term
Under the Uniform Securities Act, a state's Administrator may require the filing of which of the following documents by rule or order?
i Form letters
ii Pamphlets and/or circulars
iii A prospectus |
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Definition
All of the above
The state Administrator may require all of these items to be filed as long as the do not involve federal covered securities, exempt securities, or securities sold as part of an exempt transaction. |
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Term
| _______ ________s refer to the right of the state Administrator to inspect or review any records, both within and outside the state, in order to carry out the provisions of the Uniform Securities Act. |
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Definition
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Term
| The withdrawal of an agent's registration generally becomes effective ____ |
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Definition
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Term
| When a broker-dealer is acquired by another broker-dealer, when will the agents' registrations expire? |
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Definition
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