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S 66 > Ch. 1 > Flashcards

Ch. 1 Flashcards

1
Q

Identify who is considered a person under the USA.

A

Business entities, issuers, estates, governments, individuals (e.g., clients, IARs and agents)

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2
Q

A securities firm that executes trades for its own account or the accounts of others is deemed a _______.

A

Broker Dealer

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3
Q

T/F: The Uniform Securities Act is exactly the same law in every state.

A

F; the USA is a model law, not the actual law of any state

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4
Q

Identify the acronym: NASAA

A

North American Securities Administrators Association

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5
Q

What is the three pronged test for determining whether a firm meets the IA definition?

A

ABC
A= advice/analyses
B= business
C= compensation

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6
Q

T/F: States may make rules that are more restrictive than SEC (federal) rules.

A

F; NSMIA prohibits states from making laws that are more restrictive than existing federal requirements

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7
Q

Identify who IS NOT considered a person under the USA.

A

Minors, incompetents, securities, and the deceased are NOT considered persons.

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8
Q

T/F: Puerto Rico is a member of NASAA

A

T

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9
Q

Who is the official that monitors and administers a states securities laws?

A

The Administrator or Commissioner

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10
Q

Identify the acronym: NSMIA

A

National Securities Markets Improvement Act

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11
Q

When acting in a __________ capacity, a firm is assuming risk.

A

Principal

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12
Q

Identify the acronyms IA

A

Investment Advisor

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13
Q

T/F: The US Virgin Islands are a member of NASAA

A

T

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14
Q

What is the ABC Test for investment advisors?

A

The test that defines an IA as a firm that provides Advice as a part of a Business for Compensation

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15
Q

Who enforces the Uniform Securities Act?

A

The Administrator

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16
Q

How is a firm acting if it is trading for, or from, it’s own inventory?

A

As a principal/dealer

17
Q

T/F: Blue Sky Laws apply to broker dealers and agents operating within a state.

A

T

18
Q

What are the three components that must be met for a firm to be defined as an IA?

A
  1. Provide advice regarding securities
  2. Do so as a business
  3. Receive specific compensation (the ABC test)
19
Q

Under the provisions of the USA, how is the institutional investor designation made?

A

Under the USA, an institutional investor is any person designated by rule or order of the Administrator

20
Q

How is a firm acting if it effects trades on behalf of its customers, without taking the other side of the trade?

A

Agent or broker

21
Q

What is the general definition of an investment banker?

A

A firm that provides advice/analyses regarding securities, as a part of a business, and for compensation

22
Q

T/F: The District of Columbia is a member of NASAA.

A

T

23
Q

What rules govern the registration of an issue in any state in which it will be offered?

A

Blue Sky Laws

24
Q

When acting in an ________ capacity, firms assist customers, but do not assumed risk.

A

Agency

25
Q

T/F: A firm producing investment research for BDs to deliver to its clients is considered an IA under the USA.

A

T; since advice is being provided, as a business, and compensation is received, the ABC test is met

26
Q

List the entities that make up NASAA

A

All 50 states, the US Virgin Islands, Puerto Rico, Washington DC, Canada and Mexico

27
Q

What is a principal trade?

A

A trade involving a firm ( BD or IA) buying or selling securities for its own account at its own risk.

28
Q

According to the USA, who is included under the term “person”?

A

Any legal entity, including individuals (clients/agents/IARs), BDs, issuers, corporations and partnerships

29
Q

The _______ ________ ___________ __________ is an organization consisting of state Administrators.

A

North American Securities Administrators Association

30
Q

According to the USA, who is included under the term person?

A

Any legal entity, including individuals (clients/agents/IARs), BDs, IAs, issuers, corporations, and partnerships.

31
Q

What is the general definition of an issuer?

A

Any person who issues or proposes to issue a security, such as government entities and corporations.

32
Q

Identify two significant creations that are credited to the National Securities Markets Improvement Act (NSMIA).

A

Federal Covered Advisers and Federal Covered Securities

33
Q

Identify the acronym: USA

A

Uniform Securities Act

S 66 (12 decks)

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