Chapter 1 - Laws, Regulations, and Guidelines Overview Flashcards
1
Q
Broker-Dealer
A
Any person in the business of effecting securities transactions for the accounts of others or for its own account
2
Q
Investment Adviser (ABC Test)
A
Provides ADVICE about securities as a BUSINESS for COMPENSATION
3
Q
‘33 Act regulates:
A
Issuers
4
Q
NSMIA
A
National Securities Markets Improvement Act of ‘96
- federal law
- defines federal covered securities and advisers
- reduces duplication of state/federal regulation
5
Q
Person
A
A legal entity such as corporation, partnership, unincorporated organization, government, political subdivision and certain trusts
-DOES NOT INCLUDE children, minors, mentally incompetent, or deceased persons
6
Q
State
A
Any US state, possession, or territory including Washington D.C., Puerto Rico
7
Q
NASAA
A
North American Securities Administrators Association
- creates/writes/updates USA
- writes this exam
8
Q
‘34 Act regulates:
A
Stock market
9
Q
IA Act of ‘40 regulates:
A
IA registration
