Which of the following individuals would be defined as an agent under the Uniform Securities Act quizlet?

Which of the following persons is defined as an agent by the Uniform Securities Act?

• A) Clerk at a broker/dealer who is authorized to take orders. B) Silent partner of a broker/dealer. C) Secretary of a branch office sales manager. D) Broker/dealer executive who does not solicit or transact business.

A)Anyone who solicits or receives an order while representing a broker/dealer is an agent. Silent partners, administrative personnel, and executives of broker/dealers with no sales responsibilities are not agents under the terms of the USA because they do not solicit or receive orders.

Under the Uniform Securities Act, the definition of a broker/dealer includes a(n):A) person in the business of making trades in his own account or for the accounts of others.B) agent handling principal transactions with major institutional clients. C) trust company when executing transactions in accounts in which it does not act in a fiduciary capacity. D) authorized representative of the issuer who receives a commission

A)A broker/dealer is defined as any individual or firm in the business of making trades in its own account or for the accounts of others.

Under the USA, an individual is an agent when effecting transactions with an issuer's existing employees if commissions or other remuneration related to the sale are paid. Therefore, there are cases where the employee would have to register as an agent. When the individual is paid a straight salary for this work, no registration is required.

Under the Uniform Securities Act, a person representing an issuer in the sale of which of the following securities would NOT have to register as an agent?

1. Short term highly rated commercial paper.
2. Municipal bond. 3.U.S. bank issue. 4.Investment contract issued in connection with an employee's stock purchase, savings, pension, profit-sharing, or similar benefit plan.

Under the Uniform Securities Act, an individual is subject to registration as an agent if he engages in transactions between an issuer of a non-exempt security and:

• A) the underwriters.
• B) savings institutions or trust companies.
• C) an individual investor with assets in excess of $1 million. D) an insurance company.

C)A person representing an issuer in an exempt transaction does not have to register as an agent. Transactions between an issuer and an underwriter, an insurance company or a banking institution are exempt. Transactions with investors, not meeting the definition of institutional investor, even a wealthy investor, are not exempt and require registration as an agent.

Regardless of whether the security is exempt or the transaction is exempt, one must be licensed in any state which is the domicile of a client placing an order. One does not have to be registered as an agent in every state the B/D is, only in those where she expects clients to reside.

According to the USA, under what circumstances is an employee of a licensed broker/dealer in a state allowed to sell exempt securities as an unregistered agent?A) The transaction is exempt.B) The employee is not paid any commission or salary.C) Under no circumstances is an employee of a licensed broker/dealer in a state allowed to sell exempt securities as an unregistered agent.D) The securities are federal covered securities.

C)It is unlawful for a person to transact business on behalf of a broker/dealer unless that person is registered as an agent in the state. Only individuals selling on behalf of the issuer may qualify to be exempt from registration as an agent.

A president of a bank sells shares of the bank to public investors. Under the Uniform Securities Act, he or she is:

• A) an agent under the Uniform Securities Act.
• B) not defined as an agent under the Uniform Securities Act.C) a broker/dealer for the bank.D) an investment adviser.

B)Any individual selling securities on behalf of an issuer of an exempt security (bank securities are exempt) is not an agent under the USA.

According to the USA, a person representing an issuer in the sale of which of the following securities, would NOT have to be registered as an agent?

1. Commercial paper. 2.Municipal bonds. 3.Securities of a federally chartered bank. 4.Securities issued by the Government of Brazil.

all)An individual is not considered an agent when representing the issuer in each of the cases cited. For purposes of the exam, unless otherwise stated, all commercial paper is considered to mature in 270 days or less.

An issuer employs its officers and directors to sell newly issued shares of the company to the public. To comply with the USA, the officers and directors would have to be registered as agents of:

• A) neither a broker/dealer nor the issuer because the transactions are exempt.
• B) the issuer. C) the broker/dealer. D) the broker/dealer and the issuer.

B)Unless something in the question indicates that the securities being issued are exempt, employees, including officers and directors, who sell shares of their companies to the public fall under the definition of agent under the USA.

Under the Uniform Securities Act, an employee of a licensed broker/dealer firm is allowed to sell securities as an unregistered agent when:

• A) the transactions are exempt.
• B) the employee is not paid any commission or salary.C) under no circumstances. D) the securities are exempt.

C)It is unlawful for a person to transact business as a representative of a broker/dealer unless that person is registered, even if the securities are exempt.

Under the Uniform Securities Act, which of the following is a broker/dealer?

• A) Corporation that sells interests in an oil and gas limited partnership to investors with the proceeds going to the issuer.
• B) Agent. C) Issuer. D) Credit union that sells its own stock.

A)A broker/dealer is any person that buys or sells for the accounts of others or for his own account. In this case, an entity structured as a corporation is selling a security in the form of limited partnership units and is therefore a broker/dealer. A broker/dealer is not an issuer or an agent.

An individual would NOT be considered an agent under the USA if he engaged in which of the following?

1. An unsolicited transaction for a stock listed on the NYSE. 2.Transactions between an issuer and ordinary investors in a non-exempt security. 3.A transaction between an issuer and the underwriters. 4.Transactions between savings institutions or trust companies and an issuer.

III IV)An individual who effects securities transactions on behalf of a broker/dealer is defined as an agent. A person is excluded from the definition of an agent who is representing an issuer in exempt transactions, transactions between issuers and underwriters, and transactions with existing employees in which no commissions are paid. An unsolicited transaction is exempt, but because it is a nonissuer transaction, the agent must be registered.

Which of the following is included in the definition of a broker/dealer under the Uniform Securities Act?

• A) Agent.
• B) Out-of-state broker/dealer with no office in this state that services only other broker/dealers located in this state. C) Issuer of securities. D) One who effects securities transactions for his own account or on behalf of others.

D)Only one who is in the business of effecting transactions for his account or on behalf of others fits the definition of a broker/dealer. All of the other choices are specifically excluded from the definition.

Under the Uniform Securities Act, an agent registered in one state may transact business in another state in which he is not registered with which of the following? 1.An existing client visiting the state for a 2-week period. 2.An existing client who moved to the state 6 months ago. 3.An existing client who moved to the state less than 30 days prior. 4.An acquaintance from another state who requests that the agent execute transactions on his behalf.

I III)An agent may conduct business in a state in which he is not registered if an existing client is visiting in that state or if the client has moved to the state within the past 30 days.

As long as the agent is properly registered in the customer's state of residence, (and he must be if this is an “existing” customer), transactions made in another state being visited by the client do not require the registration of the agent. A customer living in State B can only be called by an agent registered in that state, whether or not the securities are exempt. There is no de minimis exemption for broker/dealers or agents.

There is no de minimis exemption for broker/dealers or agents.

An investor who trades securities for her own account is a(n):

• A) broker/dealer who does not need to be registered at the state level.
• B) public customer who does not need to register.
• C) broker/dealer and must register with the state.
• D) agent for a broker/dealer and must register in each state doing business.

B)Investors who trade solely for their own accounts are public customers who do not need to register.

Which of the following can be substituted for a surety bond?

• A) Real estate.
• B) Cash or marketable securities.
• C) Cash or commodities.
• D) Commodities, cash, or securities.

B)If an investment adviser exercises discretion or has custody of securities, a cash bond or marketable securities may be used instead of a surety bond.

State securities law generally limits agents to employment with a single broker/dealer unless:

• A) permission has been granted by the SEC.B) permission is received from both broker/dealers regardless of Administrator approval.C) multiple employment is widespread and does not require specific Administrator approval. D) the Administrator, by rule or order, authorizes employment with more than one broker/dealer.

D)The USA generally limits agents to single employment unless the Administrator, by rule or order, authorizes multiple affiliations.

Included in the USA’s list of exempt securities are those issued by any building and loan or similar association organized under the laws of any state and authorized to do business in this state. Therefore, an individual who is employed by the issuer of exempt securities to sell those securities is excluded from the definition of agent.

Under the USA, which of the following is considered a broker/dealer in a state?

• A) An agent effecting transactions for a broker/dealer.
• B) A broker/dealer with no place of business in the state who only does business with other broker/dealers. C) XYZ broker/dealer with an office in the state whose only clients are insurance companies. D) First Federal Company Trust.

C)Regardless of who its clients are, XYZ is considered a broker/dealer because it has an office in the state

According to the USA, a person must register as a broker/dealer in a state if he had which of the following? 1.No place of business in the state, but clients who relocated their official residence to that state more than 30 days ago. 2.No place of business in the state but dealt exclusively with broker/dealers in that state. 3.No place of business in the state but effected transactions exclusively with issuers of securities in that state. 4.A place of business in the state.

You must be licensed in both insurance and securities to sell variable annuities or to split commissions. Commissions on securities transactions may only be split with registered agents of the same or affiliated broker/dealers.

Under SEC Release IA-1092, the term investment adviser does NOT include which of the following?

1. A broker/dealer who charges for investment advice. 2.A publisher of a financial newspaper with regular and general circulation. 3.A person who sells security analysis. 4.A CPA who, as an incidental part of his practice, suggests tax-sheltered investments to wealthier clients.

II IV)A publisher of a financial newspaper and a CPA who, as an incidental part of his practice, suggests tax-sheltered investments to high tax bracket clients are not investment advisers.

Which of the following individuals are defined as an agent under the Uniform Securities Act?

Which of the following individuals is excluded from the definition of an agent under the Uniform Securities Act quizlet?

Which of the following would not be considered an agent under the Uniform Securities Act?

Which of the following is defined as a broker