Uniform Securities Act Administrative Procedures Quiz

Question 1

A customer in Montana receives the Wall Street Journal, in which an offer of security is made. The Wall Street Journal is not published in Montana. And has no office in Montana. Which statement is true?
A. An offer of securities has been made in Montana
B. No offer of securities has been made in Montana
C. And offered to sell has been made only to subscribers of the journal
D. And offered to sell has only been made to Montana residence if at least 50% of the papers total circulation is in that state

Answer 1

B.

For a newspaper offering to come under the jurisdiction of the state administrator, it must be published in the state, and have at least one third of its circulation in that state. The Wall Street Journal is published outside of Montana, so no offer of securities has been made in Montana

Question 2

Actions that are violations of the uniform securities act could cause that individual to be subject to:
A. State government anti-fraud provisions
B. Federal government anti-fraud provisions
C. Common law deceit provisions

Answer 2

All of the above

Question 3

In most states persons convicted of fraudulent actions involving an offer of securities may be:
A. Find $1000
B. Find $5000
C. Imprisoned for three years
D. Imprisoned for five years

Answer 3

Both B and C

Question 4

The administrator is permitted to do which of the following during an investigation?
A. Subpoena witnesses and documents within that state
B. Subpoena witnesses and documents in another state
C. Without a prior hearing, may issue a cease and desist order against any person
D. Without a prior court hearing enjoying the person from any prohibited acts

Answer 4

A B and C

Question 5

Mis-statement of material facts in a securities registration are violations of the act for all of the following persons except:
A. Underwriters
B. Directors of issuers
C.  Agents
D. Issuers

Answer 5

C
Agents are not involved in the filing of registration statements for securities therefore they are not responsible for the contents of the registration statement however, if she were is directors of is yours and underwriters are all involved in preparing a securities registration statement and have liability for material omissions

Question 6

The statute of limitations on criminal suits from the ledge fraudulent violations of the uniform securities act is how many years?

Answer 6

Five years

Question 7

The statute of limitations on civil suits arising from alleged violations of the uniform securities act is:

Answer 7

Two years of discovery