Questions I had no clue from Quizes

Question 1

What is the maximum fine for a violation under the USA?

Answer 1

5k is the maximum fine for a violation under the USA

Question 2

What is the maximum prison term for a violation under the USA?

Answer 2

3 years is the maximum prison term for violations under the USA.

Question 3

What can cause the Administrator to “CANCEL” registration

Answer 3

Registration being canceled is NON punitive(not punishment)

Something like being declared mentally incompetent would be cause for cancellation but not fraud or violations…

Question 4

What is the Statute of Limitations for Civil Liability?

Answer 4

The statue of limitations for civil liability is THE EARLIER of 3 years after the date of the sale or 2 years after discovery of the violation.

So if a sale took place 09/01/14 and on 10/01/15 it was realized the seller was liable the statute of limitations would run out on 09/01/17 (3 yrs from sale) because that date is earlier than 10/01/17(2 years from discovery)

Question 5

Administrator Jurisdiction

Answer 5

The Administrator has jurisdiction from the state in which the offer was made, received and accepted.

So if an agent made an offer to a client when the client was on vacation in another state, then the next day from a new state the client accepted the offer the Admin of the state the agent was in would have jurisdiction (home state) the Admin of the state the offer was received(first state vacationed in) and the Admin of the 3rd state (accepted in) would all have jurisdiction

Question 6

Stop order

Answer 6

An Administrator may NOT summarily issue a stop order without prior notice and opportunity for a hearing.

Question 7

Underwriters and Sellers “discounts” refers to their compensation

Answer 7

Underwriters and Sellers “discounts” refers to their compensation.

Question 8

What is the statute of limitations for CRIMINAL matters?

Answer 8

5 years

Question 9

No outside endorsements are ever allowable. I.E. a celebrity can not endorse an IA on a commercial

Answer 9

No outside endorsements are ever allowable. I.E. a celebrity can not endorse an IA on a commecial

Question 10

Commissions on unlisted stock

Answer 10

If a stock isn’t listed on an exchange(unlisted) and not on Nasdaq it will probably carry a higher commission than usual so that must be disclosed at SOLICITATION as well as confirmation. (commissions must always be disclosed at confirmation regardless of listing)

Question 11

What are the 5 exempt securities that if representing the issuer the individual is excluded from the definition of Agent?

Answer 11

1. Security Issued by US, an state or province as well as Canada “ “
2. Securities from Governments that US has diplomatic relationships with (not their provinces tho)
3. Banks, Savings Inst, Trust companies etc
4. Commercial paper top rated in denominations of 50k or more maturing in 9 months or less
5. Investment contracts issued in connection with emp stock purchase, savings, pensions or profit sharing plans