Chapter 1 Part 2 Flashcards Preview

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Flashcards in Chapter 1 Part 2 Deck (20)
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1
Q

An agent of a bd is defined as

A

a nonclerical individual who represents a broker-dealer in effecting securities transactions.

2
Q

Without exception, salespersons of broker-dealers effecting securities transactions are considered

A

agents and 1nust be registered.

3
Q

However, not every employee of a broker-dealer is considered an agent and subject to registration. An individual \vho provides

A

only inforrnation relating to prices and sales of securities or performs clerical tasks, such as filing paperwork or answering the phone, is not considered an agent.

4
Q

An agent of an issuer is

A

a nonclerical individual who represents an issuer in effecting securities transactions in the issuer’s securities with the public.

5
Q

An investment adviser {IA) is

A

any person {usually a firm, rather than an individual) who, for compensation, engages in the business of advising others as to the value of securities or the advisability of purchasing or selling securities.

6
Q

The advice may be given

A

directly, or through publications or writings.

7
Q

To meet the definition of an investment adviser, a person must satisfy all

A
  1. Providing Advice about securities 2. Providing these services as a Business 3. Receiving Compensation for these services
8
Q

An investment adviser representative {IAR) is any pmtner, officer, director, or other individual associated with an investment adviser who:

A

• Makes recommendations or gives advice regarding securities • Manages accounts or portfolios of clients • Determines which recommendations or what advice should be given • Solicits, offers, or negotiates the sale of investment advisory services • Supervises employees who perform any of these functions

9
Q

Investment advisers and investment adviser representatives are also referred to as

A

registered investment advisers (RIAs) and registered investment adviser representatives (RIARs).

10
Q

State securities rules and regulations are governed by

A

the Uniform Securities Act (Blue-Sky Laws).

11
Q

The USA is a

A

model law, which means that il is nol the actual law of any one state, but rather a blueprint or template that each stale may customize to suit its own needs.

12
Q

While the securities laws of most slates are based on the Uniform Securities Act released in

A

1956

13
Q

The stale securities regulator, more commonly known as the state

A

Administrator, is the person responsible for administering and enforcing the securities laws in a state as well as educating investors.

14
Q

The fundamental miission of a state securities regulator is to

A

protect the consumers who purchase securities or pay for investment advice within the state.

15
Q

In some states, a special official, such as the

A

Securities Comissioner, may carry out the Administrator’s duties, while in other states these Functions may Fall under a more comprehensive office such as the Secretary of State.

16
Q

NASAA has been given the responsibility of

A

updating the Uniform Securities Act as well as maintaining the content of the Series 65 Examination.

17
Q

Organized in 1919, NASAA is the

A

oldest international organization devoted to investor protection.

18
Q

NASAA’s current membership is comprised of

A

67 state, provincial, and territorial securities Administrators in the 50 states, the District of Columbia, the U.S. Virgin Islands, Puerto Rico, Canada, and Mexico.

19
Q

Additionally, NASAA has released

A

a number of Model Rules and Statements of Policy that clarify various provisions of the USA.

20
Q

As with the USA, these Model Rules and Statements of Policy are

A

not the actual law of any one state, although many of the states have chosen to adopt at least some of them.

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