Weekend Sale - Limited Time 70% Discount Offer - Ends in 0d 00h 00m 00s - Coupon code: sntaclus

examout.co

Ari Gaunt is a registered agent employed by Small &Associates Broker-Dealers. He has been notified of a hearing regarding the revocation of his license for making unauthorized trades on some of his clients’ accounts.

Which of the following statements is necessarily true?

A.

If Ari is found guilty and has his license revoked, Small & Associates will have its license revoked as well and must reapply for reinstatement by filling out an application and paying the requisite filing fees.

B.

If Ari is found guilty and has his license revoked, Small & Associates will be subject to a fine.

C.

If Ari is found guilty and has his license revoked, he can appeal the decision in a court of law if he files the appeal within sixty days.

D.

The Administrator of the state can assess Ari with both civil and criminal penalties.

Stu Pede is an agent with broker-dealer Cavalier. A customer calls with a request to establish a classic IRA and asks for Stu’s advice regarding where the money in the IRA should be invested. Stu suggests a municipal bond fund, explaining to his client that the interest income earned on it will be tax-free at the federal level, and some of it may even be tax-free at the state and local levels.

Has Stu engaged in any prohibited practices?

A.

Yes. Stu is an agent with a broker-dealer. He is not an investment adviser representative and is not allowed to make recommendations regarding investments to the firm’s clients.

B.

No. Although Stu has given investment advice, it was solicited by the client, and Stu received no additional compensation for the advice.

C.

Yes. Municipal bonds are not suitable investments for a classic IRA, and Stu can have his license revoked or suspended.

D.

No. Although municipal bonds are not suitable investments for a classic IRA, Stu obviously didn’t know this and is merely guilty of stupidity.

No: 192

The maximum monetary civil liability that a person who has violated a securities law can be expected to pay is

A.

the original investment + a state-deemed appropriate interest rate + court costs and reasonable attorneys’ fees + any state-determined “pain and suffering” award.

B.

the original investment + a state-deemed appropriate interest rate + court costs and reasonable attorneys’ fees + any state-determined “pain and suffering” award - any income the victim has received on the investment.

C.

the original investment + a state-deemed appropriate interest rate + court costs and reasonable attorneys’ fees - any income the victim has received on the investment.

D.

the original investment + a state-deemed appropriate interest rate + court costs and reasonable attorneys’ fees + any income the victim has received on the investment.

Which of the following conditions is necessary for an act involving securities fraud to be considered criminal and subject to criminal penalties?

A.

The act extended across state lines.

B.

The perpetrator willfully committed the fraudulent act.

C.

The victim(s) lost a combined total of at least $25,000 because of the act.

D.

The Administrator decides to send the case to criminal court.

You have recently discovered that a security you purchased has not been registered with the state, nor is it exempt from registration. You can file a civil claim against the seller as long as you do so within

A.

five years.

B.

three years from discovery or five years from the event, whichever comes first.

C.

two years from discovery or three years from the event, whichever comes first.

D.

one year from discovery.

A margin transaction refers to a transaction

A.

that is illegal under the guidelines of the Uniform Securities Act.

B.

in which the client borrows some of the money that he is investing.

C.

in which a registered agent makes trades on a customer’s account without that customer’s knowledge.

D.

Both A and C are true statements.

Carrie is a registered agent employed by CanDo Broker-Dealers. Her uncle is a minister who regularly refers his parishioners to Carrie, in return for which Carrie has agreed to donate a quarter of her commissions from these transactions to the parish.

Is Carrie doing anything illegal?

A.

No. Carrie is just donating some of her commissions back to the church, and transactions with

B.

Yes. Carrie is splitting her commissions with an entity that is not affiliated with her broker-dealer

C.

It depends. As long as the church parishioners are aware of the arrangement between Carrie and

D.

It depends. If the church itself is a client of CanDo’s, then it is considered to be affiliated with

Which of the following statements regarding the registration of broker-dealers and investment advisers is true?

A.

Investment advisers are required to register with both the state and the SEC, while broker-dealers may be registered with only one or the other.

B.

Investment advisers must always be registered with the SEC to conduct business; broker-dealers may be registered with either an individual state or the SEC or both.

C.

Investment advisers are required either to be registered with a state or with the SEC, while broker-dealers must be registered both with the SEC and the state.

D.

Both investment advisers and broker-dealers must be registered with the SEC and with the states in which they have offices.

Which of the following persons would not be required to register with the state as an agent under the guidelines of the Uniform Securities Act (USA)?

A.

Keith is a salaried employee of Middlesex County in Massachusetts who sells revenue bonds issued by the county to the public.

B.

John is employed by TrustUs Corporation to sell shares of the firm’s stock to the firm’s employees and receives a commission on the shares he sells.

C.

Stefan is a sales representative for SecureMoney Broker-Dealers and sells only mutual fund shares.

D.

Preetham is part-owner of SecureMoney Broker-Dealers and executes the purchase and sale of securities for the firm’s customers.

The Uniform Securities Act (USA) is

A.

a body of laws governing the purchase and sale of securities within a single state.

B.

a set of guidelines for individual states to follow when formulating their own securities’ laws.

C.

a group of laws requiring state-issued securities, such as municipal bonds, to be registered with.

D.

federal legislation that requires all states to adopt the same registration requirements for all.