A:

A sales representative is permitted to take all of the following actions EXCEPT:

a. Offer investment advice to clients
b. Accept unsolicited orders to trade registered non-exempt securities
c. Solicit orders for unregistered non-exempt securities
d. Place trades requested by a wife who has power of attorney for her husband's account


The correct answer is "c". While a sales representative may accept unsolicited orders for registered non-exempt securities, and may solicit order for registered non-exempt or unregistered exempt securities, he may not solicit orders for unregistered non-exempt securities. And, the sales representative may offer investment advice to clients as long as he does not charge a separate fee for that service.

RELATED FAQS
  1. Under the Uniform Securities Act, which of the following actions is permitted for ...

    The correct answer is d). A sales representative may not make trades in a state unless both the sales representative and ... Read Answer >>
  2. Under the Uniform Securities Act, all of the following are prohibited EXCEPT ... ...

    The correct answer is c. Refusing to follow a client’s instructions and making false statements (or omitting true ones!) ... Read Answer >>
  3. What are unregistered securities or stocks?

    Before securities, like stocks, bonds and notes, can be offered for sale to the public, they first must be registered with ... Read Answer >>
  4. What is the doctor advisory scam?

    U.S. securities law provides certain exemptions that allow privately owned companies to issue shares of unregistered stock ... Read Answer >>
  5. What is an unregistered security scam?

    Each year, millions of Americans lose money to con artists who convince them to invest in companies through "private offerings" ... Read Answer >>
  6. A sales representative solicits and executes a mutual fund trade ...

    The correct answer is c). This would be considered a private securities transaction, which is not permitted. All securities ... Read Answer >>
Related Articles
  1. Personal Finance

    Not Every Financial Advisor Gives Impartial Advice

    Some financial advisors provide advice that benefits them rather than you.
  2. Financial Advisor

    High-Pressure Sales Tactics You Should Be Aware Of

    Beware of financial advisors (and others) who use these common high-pressure sales tactics.
  3. Investing

    Making The Trade: Understand Order Types

    Buying and selling stock can be a lot like buying or selling a car. Traders should use and understand tools such as market orders, limit orders, day orders, and good-'til-canceled orders to ensure ...
RELATED TERMS
  1. Non-exempt Employee

    The term “Non-exempt Employee” refers to a category of employees ...
  2. Legend

    A statement on a stock certificate noting restrictions on the ...
  3. Unsolicited Bid

    An offer made by an individual, company or group of investors ...
  4. Series 11 License - Assistant Representative - Order Processing

    A securities license, administered by the Financial Industry ...
  5. Schedule 14C

    This schedule sets forth the disclosure requirements for information ...
  6. Selling Away

    When a broker solicits you to purchase securities not held or ...
Hot Definitions
  1. Five Cs Of Credit

    A method used by lenders to determine the credit worthiness of potential borrowers. The system weighs five characteristics ...
  2. Straddle

    An options strategy in which the investor holds a position in both a call and put with the same strike price and expiration ...
  3. Trickle-Down Theory

    An economic idea which states that decreasing marginal and capital gains tax rates - especially for corporations, investors ...
  4. North American Free Trade Agreement - NAFTA

    A regulation implemented on Jan. 1, 1994, that eventually eliminated tariffs to encourage economic activity between the United ...
  5. Agency Theory

    A supposition that explains the relationship between principals and agents in business. Agency theory is concerned with resolving ...
  6. Treasury Bill - T-Bill

    A short-term debt obligation backed by the U.S. government with a maturity of less than one year. T-bills are sold in denominations ...
Trading Center