Unit 5

Question 1

offer

Answer 1

attempt to solicit the purchase
attempt to dispose of a security
sale of rate, warrant or convertible security applies

Question 2

sale

Answer 2

transfer for value

the bonus of warrants or stock apply

Question 3

what is considered both an offer and sale

Answer 3

gift of assessable stock

Question 4

what isn’t sale

Answer 4

gift of NON-assessable stock
stock dividends or splits
bona fide pledge or loan

Question 5

administrator has power over any offer to buy or sell that

Answer 5

originated
directed
accepted

in administrators state

Question 6

when the administrator does not have jurisdiction

Answer 6

merely because a check was mailed or certificates were sent from the administrator’s state

Question 7

administrator actions

Answer 7

issue cease and desist without hearing
if it ignored, courts can issue an injunction

summary order to postpone or suspend registration
until final determination ir reached
don’t need prior notice or hearing
must hold hearing within 15 days of request *

may investigate and subpoena in any state where registered whether or not the firm has an office in the state

Deny suspend or revoke the license
must be in the publics best interest and something else

same for securities registration

Question 8

*

the final order of the administrator

Answer 8

appropriate prior notice
opportunity for hearing
written findings

Question 9

cancellation of registration can occur if

how long does the administrator retain jurisdiction

Answer 9

registration ceased doing business
deceased
mentally incompetent

admin retains jurisdiction for one year

Question 10

rights of buyer fees

Answer 10

can get back money plus reasonable interest- income

get court costs back

Question 11

improper advice fees back

Answer 11

can recover fees
losses on recommendations
interest- income
court fees

Question 12

right of rescission

Answer 12

30 days notice

if buyer receives offer of rescission and fails to accept or reject within 30 days, can’t sure

Question 13

statute of limitations civil

Answer 13

must be within 2 years of discovery or 3 years of violation, whichever occurs first

Question 14

criminal penalties fines and jail

Answer 14

5000 fine, 3 years jail

state of limitations 5 years for criminal

Question 15

how many days to appeal the order

Answer 15

60 days

an appeal does not act as a stay unless rules otherwise by the court

Question 16

net worth does not include the following as assets

Answer 16

goodwill, franchise rights, patents, copyrights, marketing rights, and all other assets of intangible nature; home, home furnishings, automobile(s), and any other personal items not readily marketable in the case of an individual; advances or loans to stockholders and officers in the case of a corporation; and advances or loans to partners in the case of a partnership.

can be furniture if not home furniture