Series 63 2 || Already Graded A+.
broker dealer correct answers any person engaged in the business of effecting transactions in
securities for the account of others or for his own account.
Broker-dealers with no place of business in a state are not required to register in that state if their
only clients in that state are correct answers life insurance companies.
broker dealers are firms where correct answers agents work
when acting on behalf of their customers ( buying and selling securities for clinets' accounts --
broker dealer act as correct answers agent capacity
when broker dealer buy and sell securities from their own account ( proprietary accts), they act in
a correct answers principal capacity as dealers
another function of a broker dealer is the underwriting of new issues, this practice is known as
correct answers investment banking
broker dealer are regulated by correct answers the states and SEC
Person not included in the broker dealer definition correct answers agents ( who work for Broker
Dealers)
issuers ( issues the stocks and bonds that BDs sell)
Banks, saving institutions and trust companies ( they are not engaged in broker dealer activities
domestics commercial
financial intuitions
An exclusion from the definition of broker-dealer (meaning registration as one is not required) is
available when there is correct answers no place of business in the state and the only clients are
other BDs or institutions
Even without a place of business in a state, once a broker-dealer has even correct answers a
single retail client residing in that state, registration is required.
The Uniform Securities Act concerns itself with those in the business of executing transactions in
securities, not correct answers real estate, rare coins, commodities, or any other type of
investment that is not a security.
Persons not included in the Uniform Securities Act's definition of broker-dealer are correct
answers agents.
banks.
,issuers.
trust companies.
As defined in the Uniform Securities Act, broker-dealer does not include a person who has no
place of business in this state if he effects transactions in this state exclusively with other BDs,
banks, savings institutions, trust companies, insurance companies, or investment companies as
defined in the Investment Company Act of 1940. The exclusion also applies when the clients are
correct answers employee benefit plans with assets of at least $1 million. This employee benefit
plan is $155,000 shy of the $1 million needed for the exclusion.
Broker-dealers with no place of business in a state are not required to register in that state if their
only clients in that state are correct answers ` institutions, such as banks, investment companies,
and insurance companies.
All of the following statements regarding broker-dealers are true correct answers they act as
agents in executing orders to buy and sell securities on the various stock exchanges in the
secondary market.
they are regulated by the states where they conduct business.
they may act as dealers who buy and sell securities for their own accounts.
investment adviser representatives work for correct answers investment advisers
In compliance with the Uniform Securities Act, a broker-dealer without a place of business in a
state meets the definition of a broker-dealer when correct answers it has fewer than six retail
clients who reside in the state.
Under the USA, you are NOT a broker-dealer if: correct answers 1. you have NO place of
business in the state, AND;
2. your only clients are other BDs, institutions, and issuers of the security involved in the
transaction
Under the USA, you are a broker-dealer if: correct answers 1) you have a place of business in the
state OR
2) you have even one retail client in the state
South Street Investors (SSI) is a broker-dealer registered in State P. It has no offices in State O,
although it does do business in that state. Under the Uniform Securities Act, registration in State
O is required if the client is correct answers an individual meeting the SEC's definition of
accredited investor.
Broker-dealers with no place of business in a state are not required to register in that state if their
only clients in that state are correct answers institutions, such as banks, investment companies,
and insurance companies
, The exclusion also applies when the client is a large (at least $1 million in assets) employee
benefit plan
With the growth of the internet, NASAA developed an interpretive order concerning broker-
dealers, (and investment advisers, agents, and investment adviser representatives), using the
internet for general dissemination of information on products and services. The primary focus of
this order was to correct answers set the parameters under which securities professionals could
communicate on the internet or use their websites in states in which they were not registered
Under the Uniform Securities Act, which of the following statements regarding the business
structure of a broker-dealer are true correct answers It can be a sole proprietorship.
It can be a corporation.
.
It can be a partnership.
A broker-dealer can be structured as any recognized business form. That would include correct
answers a sole proprietorship, a partnership, a limited liability company (LLC), or a corporation
Under the Uniform Securities Act, the term broker-dealer would include correct answers a
person with no office in the state who effects securities transactions with no more than five
individual residents of the state in any 12-month period.
Traditionally, banks have been excluded from the definition of a broker-dealer. However, under
recent federal legislation, a bank is included in the definition if it correct answers bought and
sold securities on behalf of customers in a wholly owned brokerage subsidiary.
A broker-dealer may be structured as correct answers a corporation, a partnership, or a sole
proprietorship.
The snowbird exemption applies when a correct answers broker-dealer (or other securities
professional) does not have a place of business in a state and its only clients in the state are
existing clients temporarily in the state.
investment advisers frequently correct answers also carry registration as a BD.
Unless qualifying for an exemption , any person who meets the defintion of a
___________________ , must register with the state correct answers broker dealer , agent ,
investment adviser, investment adviser representative
to register with the state securities administrator, a person must correct answers - submit an
application
- provide a consent to service of process
- pay filing fees
