Book Wrong Answers Flashcards
Under the USA, which of the following statements regarding registration of a successor firm is true?
The registration of the successor firm will be effective until the December 31 renewal date
A publicly traded corporation offers its employees an opportunity to purchases shares of the company’s common stock directly from the issuer. A specific employee of the company is designated to process orders for that stock. Under the Uniform Securities Act, the employee
Must register as an agent if he will receive commissions or remuneration either directly or indirectly
In which of the following cases must the required documentation be received prior to any account activity?
Discretionary account with a broker dealer
Which of the following is not a factor when communication to be distributed to the public is either being reviewed or approved by the broker dealer?
Whether the piece will be distributed in written form or on the firm’s website
If a broker dealer is selling shares of an affiliated company, under which of the following conditions could the broker dealer sell these shares to an account over which the broker dealer has discretion?
If specific authorization is received from the customer
A customer of a broker dealer purchases 100 shares of KAPCO common stock. The trade confirmation sent to the customer must include
Whether the broker dealer acted as an agent or principal
An Administrator has jurisdiction over an offer to sell securities if it was made in a newspaper published within the state with no more than
Two-thirds of its circulation outside the state
Although the Administrator has great power, the USA does place some limitations on the office. Which of the following statements regarding those powers are true?
In conducting an investigation, an Administrator can compel the testimony of witnesses
An Administrator may deny the registration of a securities professional who has been convicted of a felony within the past 10 years but must provide, if requested in writing, a hearing within 15 days
When making an offer of a new issue that is in registration to a prospective client, an agent claims that his registration with the Administrator is proof of his qualifications, under USA
Claiming his registration is approved by the Administrator subjects this agent only to civil liability if a sale results
If an agent chooses to appeal an Administrator’s order, when must the agent file for review of the order with the appropriate court?
Within 60 days after the entry of the order
