Though there are some portions of the Business Practices section of the test that can get a little confusing, a bit of common sense here can take you a long way. When thinking about fraudulent activity, simply ask yourself, "is this ethical?" If you come up with a common sense answer of no, you have most likely answered the question! 

Exam Tips and Tricks

The USA specifically defines "fraud" as:
An attempt by any person, individual or entity "in connection with the offer, sale or purchase of a security, directly or indirectly:
to employ a device, scheme or artifice to defraud; to make an untrue statement of a material fact or to omit to state a material fact necessary in order to make the statements made, in light of the circumstances under which they were made, not misleading; or to engage in an act, practice, or course of business that operates or would operate as a fraud or deceit upon another person." Let\'s just say, for simplicity\'s sake, that fraud is comprised of lying, cheating and stealing!

The USA also states that the above definition "applies to any securities offer, sale or purchase, including offers, sales or purchases involving registered, exempt or federal covered securities."



Communications with Clients and Prospects

Related Articles
  1. Financial Advisor

    Succeeding At The Series 63 Exam

    Your career as a securities agent begins with this test. We'll show you how to score high.
  2. Insights

    Mortgage Fraud: Understanding and Avoiding It

    Mortgage fraud is dangerous, learn how to detect it.
  3. Retirement

    What Social Security Fraud Costs You

    Taxpayers lose billions of dollars every year, according to Social Security fraud statistics. What to look for.
  4. Insurance

    What is Insurance Fraud?

    Fraud exists in every type of insurance, although the stakes tend to be highest with life insurance.
  5. Personal Finance

    The Series 79 Exam: What It Is And When You Need It

    If you're getting into the field of investment banking, you'll need to know all about the Series 79.
  6. Small Business

    How To Protect Your Small Business From Fraud

    Small business owners are at risk of being scammed. Here's what you need to know to avoid that.
  7. Insights

    How to Protect Yourself From Credit Card Fraud

    Credit card fraud is sharply up. Learn the worst types and how to protect yourself.
  8. Financial Advisor

    Tips on Passing the CFA Level I on Your First Attempt

    Obtain valuable tips and helpful study instructions that can help you pass the Level 1 Chartered Financial Analyst exam on your first attempt.
  9. Investing

    CPA Exam Tips

    Tips for the CPA exam - how to approach it, what to expect, and the time it takes to complete.
  10. Financial Advisor

    Series 63, Series 65 Or Series 66?

    When joining the world of investment professionals, you must take the right exams.
Frequently Asked Questions
  1. How do you calculate r-squared in Excel?

    Calculate R-squared in Microsoft Excel by creating two data ranges to correlate. Use the Correlation formula to correlate ...
  2. What is the Difference Between International Monetary Fund and the World Bank?

    Learn about the International Monetary Fund and the World Bank and how they are differentiated by their respective functions ...
  3. Where Did the Bull and Bear Market Get Their Names?

    The terms bull and bear are used to describe general actions and attitudes, or sentiment, either of an individual (bear and ...
  4. What's the difference between Google's GOOG and GOOGL stock tickers?

    Learn the difference between Google's GOOG and GOOGL ticker symbols. Splitting shares into classes prevents management from ...
Trading Center