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Series 65 > UNIFORM SECURITIES ACT > Flashcards

UNIFORM SECURITIES ACT Flashcards

0
Q

Rights and warrants are considered securities under the USA act

A

True rights and warrants must be registered under the act

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1
Q

True or false: notes and evidence of indebtedness such as mortgages, etc. have to be registered under the act

A

True. Notes and evidence of indebtedness are included in the definition of securities under the act. Note collateral trust certificates

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2
Q

True or false: voting trust certificates must be registered under the act

A

True

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3
Q

True or false certificates of deposits of securities such as ADRS must be registered under the act

A

True. ADRs are defined as securities

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4
Q

True or false investment contracts (such as options, etc.) must be registered under the act

A

True. Investment contracts are defined as securities under the act

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5
Q

True or false variable life insurance and variable annuity products are considered securities under the USA act

A

True. Very willing you Woodys and variable life insurance are considered securities

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6
Q

Fixed life insurance products are considered securities

A

False. Fixed annuities and life insurance products are not considered securities under the USA act

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7
Q

True or false commodity futures contracts is considered a security

A

False

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8
Q

True or false jewels precious metals are included in the definition of security

A

False. Jules and precious metals are not included in the definition of security under the USA act

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9
Q

True or false: real estate investments are considered securities under the act

A

FALSE. real estate are not included in the definition of securities under the USA act

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10
Q

True or false: endowment policies are included in the definition of securities under the USA

A

False. These are excluded from the definition of securities

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11
Q

Define ex-date

A

The DX – dividend date determines whether an investor will receive the dividend

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12
Q

Prior to repurchasing shares in the open market, a corporation would require approval from:

A

The corporation would require approval from its Board of Directors

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13
Q

What is the formula for current yield (stock equity)

A

Current yield = annual dividend /market value

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14
Q

What is the holding period return (H PR)

A

..

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15
Q

Which debt security would be considered to have the greatest interest rate risk!?

A

Zero coupon bonds have the greatest interest rate risk

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16
Q

What is active portfolio management?

A

Active portfolio management uses fundamentals in an attempt to exceed the performance benchmark

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17
Q

Define sharpe ratio

A

The Sharpe ratio is the risk – adjusted rate of return relative to portfolio volatility

18
Q

What sector would be appropriate for investors looking forward to diversification in non-domestic markets?

A

Emerging markets

19
Q

Which industries are most affected by changes in interest-rate?

A

Highly – leveraged industries such as utility companies

20
Q

Warrants are issued with which type of new issue?

A

..

21
Q

When would a stock begin trading “X – dividend”?

A

The second business day prior to the record date

22
Q

Define surety bond requirements under the USA

A

Surety bond requirements are determined by the state administrator and maybe deposited in cash or securities under the USA

23
Q

True or false investors with 5% or more ownership of outstanding shares in any one company must file a report with the SEC

A

True according to the exchange act of 1934 investors with 5% or more ownership of an equity security registered under the act must file form 13 – D

24
Q

A case of fraud against and IAR is permitted to move forward without the participation of the customer in the following 3 conditions:

A

1.if the customer gets into an accident and is in a coma; 2.if the customer dies; 3.if the customer travels to a foreign country and has no access to communications

25
Q

What are institutional investors?

A

Institutional investors of those designated as such by the state administrator by rule or order

26
Q

A State administrator may deny an application if the broker-dealer applicant: A) has been convicted; B) Has been suspended by another exchange; C) Has been investigated by another state administrator

A

B) being suspended by another exchange is sufficient grounds for denying an application

27
Q

True or false: an employee of an IA whose role involves supervising IAR’s must register under the USA act

A

True

28
Q

True or false: a B/D and their agents who provide incidental securities advice and receive no compensation for such must register under the USA

A

F

29
Q

True or false: employees of an IA who solicit only sales of fixed annuities must register under the USA

A

False. Fized annuity products are not considered securities into the act

30
Q

True or false: I companies providing investment advice regarding securities issued by Manx, savings institutions, investment companies, trust companies must register under the act

A

True

31
Q

True or false: publishers of news with general information about securities must register under the act

A

Fall

32
Q

True or false: publishers of content that answer questions from specific investors about specific securities must register under the act

A

True

33
Q

True or false lawyers, accountants, teachers, engineers who have part-time businesses offering securities advice for compensation must register under the act

A

True if the advice provided by those in the L a TE professions is not incidental to their business they must register under the act

34
Q

True or false banks, savings and loan companies, trust companies, investment companies who receive compensation for providing security’s advice must register under the USA

A

False. No registration required for the listed institutions under the USA act

35
Q

True or false: a broker-dealer paid for investment advice and paid commissions for transactions effected on behalf of retail investors must register under the USA

A

True

36
Q

True or false employees of a broker-dealer whose role does not involve making recommendations or handling trades must register under the act

A

Falls. I’m registered employees whose roles are clerical in nature are exempt from registration

37
Q

True or false: geologists and astronomers who provide securities advice incidental to their professional practice must register under the act

A

True professionals providing incidental securities advice or not lawyers accountants teachers or engineers must register under the USA

38
Q

True or false partners, officers, directors of broker-dealers and issuers whose role include effecting transactions must register under the act

A

True.

39
Q

True or false: persons who represent issuers and affecting principles, officers, directors and employee investment transactions must register under the act

A

Balls. Agent for issuers to provide investment services for their own employee investment accounts are exempt from registration

40
Q

True or false: an agent who advises on investment in municipal securities, investment contracts, promissory notes, Canadian government securities, insurance company securities, US government securities must register under the act

A

Balls. Agent to provide advice only on exempt securities do not register

41
Q

True or false: a professional who determine suitability of investment vehicles to retail investors must register under the act

A

True.

42
Q

True or false: investment advisors with five retail clients or permanent residents of state tax must register as investment advisers in State ex under USA

A

False. Investment advisers are exempt from registration and state next because they have five or fewer we tell clients who are residents of the state

Series 65 (3 decks)

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