Crunch Time : Chapter 1

Question 1

What is the definition of a person?

Answer 1

A person does not include a minor or an individual who is mentally incompetent.

This definition is relevant in legal and financial contexts.

Question 2

Who must be registered when selling securities publicly?

Answer 2

An agent of an issuer who is compensated for selling securities publicly must be registered.

Registration is typically required to ensure compliance with regulatory standards.

Question 3

Is an agent of an issuer of exempt securities subject to registration?

Answer 3

No, an agent of an issuer of exempt securities is not subject to registration.

Exempt securities often have different regulatory requirements.

Question 4

What is required of an agent of a broker-dealer involved in exempt securities?

Answer 4

An agent of a broker-dealer who is involved in the purchase or sale of an exempt security is subject to registration.

This requirement helps maintain oversight in securities transactions.