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| Section | Weight | Objectives |
|---|---|---|
| Regulation of Investment Advisers | 5% | - Federal vs state adviser regulation - Investment adviser registration rules |
| Regulations of Securities and Issuers | 9% | - Issuer regulation principles - Securities registration and exemptions |
| Regulation of Investment Adviser Representatives | 5% | - IAR registration and obligations - Recordkeeping and contract standards |
| Regulation of Broker-Dealer Agents | 13% | - Agent registration requirements - Associated person regulations |
| Communication with Customers and Prospects | 20% | - Disclosure requirements - Advertising and correspondence rules |
| Regulation of Broker-Dealers | 12% | - Federal and state registration standards - Broker-dealer regulatory requirements |
| Ethical Practices and Obligations | 25% | - Conflicts of interest and fiduciary duties - Fraudulent and unethical conduct |
| Remedies and Administrative Provisions | 9% | - State Administrator authority - Enforcement and penalties |
Mr. Bigwig, CEO of HiGrowth Corporation, meets with the president of BigFee Investment Bankers and arranges for BigFee to underwrite an Initial Public Offering (IPO) for the firm. When the IPO comes to market, GetErDone Broker-Dealers is part of the selling group, which handles the sale of the stock to the public.
In this scenario, which party is acting as a dealer?
Correct Answer: C 🗳️
Explanation: Only visible for TestkingPass members. You can sign-up / login (it's free).
Which of the following practices would be prohibited in connection with the sale of investment company shares?
I. selling a client shares of a load stock fund when a no load stock fund with the same investment objective exists II. selling the client shares of five S&P 500 Index mutual funds, offered by different fund families III. encouraging a client to swap his money between two funds in the same family without informing him that this creates a taxable event
Correct Answer: C 🗳️
Explanation: Only visible for TestkingPass members. You can sign-up / login (it's free).
Your client calls you with a market order to purchase 500 shares of the stock of Oracle and asks when payment will be due. If today is Wednesday, September 15th, you inform the client that payment is due on
Correct Answer: B 🗳️
Explanation: Only visible for TestkingPass members. You can sign-up / login (it's free).
You have passed the necessary exams (congratulations!) and are applying for registration as a securities agent.
It is already the end of September. Therefore, you must pay
Correct Answer: D 🗳️
Explanation: Only visible for TestkingPass members. You can sign-up / login (it's free).
Which of the following statements would not be in violation of NASAA rules regarding the sale of investment company shares?
I. "Investing your money in shares of this money market mutual fund is identical to putting your money in a savings account at a bank, except the money market fund provides a higher return." II. "Our U.S. government bond fund is invested only in government bonds issued by the U.S. government and is, therefore, a risk-free investment." III. "You are investing $22,000 in this fund today. The fund has a 5% load at this investment level, but if you sign a letter of intent to invest another $3,000 within the next 13 months, your load will be reduced to 4%. If something comes up and you can't invest the extra $3,000 within 13 months, you will only need to pay the difference in the two loads."
Correct Answer: B 🗳️
Explanation: Only visible for TestkingPass members. You can sign-up / login (it's free).
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