Unit 7

Question 1

the test on trading in a clients account is excessive depends on

Answer 1

trading is in line with clients investment objectives and financial resources

Question 2

true or false- provisions of the uniforms securities act cannot be waived?

Answer 2

true

Question 3

what is found on an order ticket?

Answer 3

account number, execution price, time of order entry, time of execution or cancellation, terms and conditions

Question 4

true or false: reporting inside information to an administrator is appropriate?

Answer 4

false

Question 5

true or false only licensed people can get paid for securities sales?

Answer 5

true

Question 6

what does section 28(e) of the securities exchange act of 1934 deal with

Answer 6

soft dollar compensation from broker dealers to investment advisers

Question 7

four things that will prohibit a fund from being referred to as no-load

Answer 7

-any front end load
-any cdsc
-a 12b-1 charge in excess of .25% of average net funds assets per year
-a service fee in excess of .25% of average net fund assets per year

Question 8

true or false: sharing if commissions by agents or two unrelated firms is prohibited?

Answer 8

true

Question 9

true or false it is unethical to compare savings accounts to money market mutual funds?

Answer 9

true