Q:

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.

A:

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 ...
  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!) ...
  3. Under the USA, there are antifraud provisions that apply to securities. Which of ...

    a. Antifraud provisions apply to non-exempt securities only. b. Antifraud provisions apply to exempt securities only. c. ...
  4. What is an unregistered mutual fund?

    An unregistered mutual fund is a general name given to investment companies that are not formally registered with the Securities ...
  5. 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 ...
  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 ...
RELATED TERMS
  1. Non-exempt Employee

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

    Investopedia explains: Unregistered shares are securities that ...
  3. Rule 144

    A Securities and Exchange Commission rule that sets the conditions ...
  4. Legend

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

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

    A securities license, administered by the Financial Industry ...
Hot Definitions
  1. Cover Letter

    A written document submitted with a job application explaining the applicant's credentials and interest in the open position. ...
  2. 403(b) Plan

    A retirement plan for certain employees of public schools, tax-exempt organizations and certain ministers. Generally, retirement ...
  3. Master Of Business Administration - MBA

    A graduate degree achieved at a university or college that provides theoretical and practical training to help graduates ...
  4. Liquidity Event

    An event that allows initial investors in a company to cash out some or all of their ownership shares and is considered an ...
  5. Job Market

    A market in which employers search for employees and employees search for jobs. The job market is not a physical place as ...
  6. Yuppie

    Yuppie is a slang term denoting the market segment of young urban professionals. A yuppie is often characterized by youth, ...
Trading Center