UNIFORM SECURITIES ACT Flashcards
Rights and warrants are considered securities under the USA act
True rights and warrants must be registered under the act
True or false: notes and evidence of indebtedness such as mortgages, etc. have to be registered under the act
True. Notes and evidence of indebtedness are included in the definition of securities under the act. Note collateral trust certificates
True or false: voting trust certificates must be registered under the act
True
True or false certificates of deposits of securities such as ADRS must be registered under the act
True. ADRs are defined as securities
True or false investment contracts (such as options, etc.) must be registered under the act
True. Investment contracts are defined as securities under the act
True or false variable life insurance and variable annuity products are considered securities under the USA act
True. Very willing you Woodys and variable life insurance are considered securities
Fixed life insurance products are considered securities
False. Fixed annuities and life insurance products are not considered securities under the USA act
True or false commodity futures contracts is considered a security
False
True or false jewels precious metals are included in the definition of security
False. Jules and precious metals are not included in the definition of security under the USA act
True or false: real estate investments are considered securities under the act
FALSE. real estate are not included in the definition of securities under the USA act
True or false: endowment policies are included in the definition of securities under the USA
False. These are excluded from the definition of securities
Define ex-date
The DX – dividend date determines whether an investor will receive the dividend
Prior to repurchasing shares in the open market, a corporation would require approval from:
The corporation would require approval from its Board of Directors
What is the formula for current yield (stock equity)
Current yield = annual dividend /market value
What is the holding period return (H PR)
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Which debt security would be considered to have the greatest interest rate risk!?
Zero coupon bonds have the greatest interest rate risk
What is active portfolio management?
Active portfolio management uses fundamentals in an attempt to exceed the performance benchmark
Define sharpe ratio
The Sharpe ratio is the risk – adjusted rate of return relative to portfolio volatility
What sector would be appropriate for investors looking forward to diversification in non-domestic markets?
Emerging markets
Which industries are most affected by changes in interest-rate?
Highly – leveraged industries such as utility companies
Warrants are issued with which type of new issue?
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When would a stock begin trading “X – dividend”?
The second business day prior to the record date
Define surety bond requirements under the USA
Surety bond requirements are determined by the state administrator and maybe deposited in cash or securities under the USA
True or false investors with 5% or more ownership of outstanding shares in any one company must file a report with the SEC
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
A case of fraud against and IAR is permitted to move forward without the participation of the customer in the following 3 conditions:
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
What are institutional investors?
Institutional investors of those designated as such by the state administrator by rule or order
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
B) being suspended by another exchange is sufficient grounds for denying an application
True or false: an employee of an IA whose role involves supervising IAR’s must register under the USA act
True
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
F
True or false: employees of an IA who solicit only sales of fixed annuities must register under the USA
False. Fized annuity products are not considered securities into the act
True or false: I companies providing investment advice regarding securities issued by Manx, savings institutions, investment companies, trust companies must register under the act
True
True or false: publishers of news with general information about securities must register under the act
Fall
True or false: publishers of content that answer questions from specific investors about specific securities must register under the act
True
True or false lawyers, accountants, teachers, engineers who have part-time businesses offering securities advice for compensation must register under the act
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
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
False. No registration required for the listed institutions under the USA act
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
True
True or false employees of a broker-dealer whose role does not involve making recommendations or handling trades must register under the act
Falls. I’m registered employees whose roles are clerical in nature are exempt from registration
True or false: geologists and astronomers who provide securities advice incidental to their professional practice must register under the act
True professionals providing incidental securities advice or not lawyers accountants teachers or engineers must register under the USA
True or false partners, officers, directors of broker-dealers and issuers whose role include effecting transactions must register under the act
True.
True or false: persons who represent issuers and affecting principles, officers, directors and employee investment transactions must register under the act
Balls. Agent for issuers to provide investment services for their own employee investment accounts are exempt from registration
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
Balls. Agent to provide advice only on exempt securities do not register
True or false: a professional who determine suitability of investment vehicles to retail investors must register under the act
True.
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
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
