Crunch Time : Chapter 8 Flashcards
What can the Administrator issue but not an injunction?
A cease-and-desist order
A gift of assessable stock is considered both an _______ and a sale.
offer
The exercise of a stock option is considered a _______.
sale
Is the Administrator of State A required to notify the Administrator of State B if it begins an investigation in State B?
No
The Administrator can provide evidence of violations to the state’s attorney or district attorney, but cannot _______.
initiate criminal proceedings
What does the Administrator have jurisdiction over?
An offer to buy or sell a security made or accepted in his state
An offer is made in a state if it _______.
originated in, or was directed to and received in, the state
Registration can be denied if an individual has been convicted of a _______ in a foreign country within the past five years.
securities violation
What is a statutory disqualification event related to an insurance license?
The revocation of a person’s insurance license within the past 10 years
The Administrator can _______ witnesses both inside and outside the state.
subpoena
The Administrator may cancel a registration without _______.
prior notice or the opportunity for a hearing
A letter of rescission is good for _______ days.
30
After 30 days, a client cannot bring _______ related to a letter of rescission.
civil action
Willful violations of the USA are subject to criminal penalties of up to _______ years in prison.
three
What is the maximum fine for willful violations of the USA?
$5,000
For civil liabilities, a client must bring suit within _______ from the date of the violation.
three years
Civil liabilities include the purchase price, interest, court costs, and _______.
attorney’s fee
Civil liabilities are reduced by any _______ received.
income
What type of income can reduce civil liabilities?
Interest or dividends
