Final 3

Question 1

What is the window the SEC has to grant or deny a registration?

Answer 1

45 days

Question 2

Does giving advice about real estate make you an investment advisor?

Answer 2

No, investment advisors only give advice about securities

Question 3

Are estate planners investment advisors?

Answer 3

No

Question 4

Are pension consultants investment advisors?

Answer 4

Yes

Question 5

Can an investment advisor ever give or recieve a loan from a customer?

Answer 5

Never

Question 6

Can an investment advisor every loan money to employees?

Answer 6

Yes

Question 7

Does a customer have to sign a statement acknowledging recept of the brochure?

Answer 7

Yes

Question 8

Can investment advisers accept gifts?

Answer 8

Yes

Question 9

Does advising customers about selecting a b/d qualify as giving advice about investing?

Answer 9

no

Question 10

Can offerings of pre-organization certificates involve commission?

Answer 10

No

Question 11

Can offerings of pre-organization certificates use advertising?

Answer 11

Yes

Question 12

What is the maximum number of investors of a pre-organization certificate?

Answer 12

10

Question 13

What do growth investors look for?

Answer 13

earnings growth or growth in market price; ignore fundamental and technical factors

Question 14

Can an investment advisor change the IAR of a customer account without customer permission?

Answer 14

Yes

Question 15

When must 8K reports be filed?

Answer 15

4 days

Question 16

What is synonymous with agent?

Answer 16

broker and middleman

Question 17

Can an agent be registered with two broker dealers?

Answer 17

Not usually, unless affiliated; otherwise must be registered with both

Question 18

Are mutual fund dealers broker dealers?

Answer 18

Yes

Question 19

Can promotional materials be attached to a prospectus?

Answer 19

No

Question 20

if a sectretary takes orders a b/d are they an agent?

Answer 20

Yes

Question 21

If a b/d does not charge for investment advice must they register as investment advisers?

Answer 21

No

Question 22

What is the primary risk associated with municipal bonds?

Answer 22

Legislative risk

Question 23

How many days does a customer have to back out of a contract under NASAA rules?

Answer 23

5 days

Question 24

Can prior recommendations be shown in advertising?

Answer 24

No

Question 25

What risk can be diversified away?

Answer 25

non-systematic risk