Under the Uniform Securities Act, all of the following are prohibited EXCEPT ...

By Investopedia Staff AAA
Q:
Under the Uniform Securities Act, all of the following are prohibited EXCEPT:
a) Omitting a material fact due to time constraints
b) Refusal to follow a client’s instructions
c) Soliciting trades for unregistered exempt securities
d) Making an untrue statement regarding a material fact
A:
The correct answer is c.
Refusing to follow a client’s instructions and making false statements (or omitting true ones!) about material facts are all prohibited. Furthermore, while soliciting trades for unregistered non-exempt securities is prohibited, there is no prohibition for soliciting orders for unregistered exempt securities (such as US Government bonds).

RELATED FAQS

  1. Demonstrate, using equations from the Dupont or similar ratio model ...

    The key to this question is the relationship between margins and turns in the ROE portion of ratio models and formulas. ROE ...
  2. Which of the following strategies is (are) appropriate? I. If a borrower has a fixed ...

    The correct answer is: a) (II) is incorrect because if an investor has floating rate assets and is expecting interest rates ...
  3. John King, a CFA, resides in Jurisdiction A, where the securities laws and regulations ...

    The correct answer is d. Since the Law of Locality applies, and King performs his business in Jurisdiction B (where securities ...
  4. For $800,000 invested today, an insurance company promises to start making perpetual ...

    The correct answer is: A) We must first link the $800,000 today to the period when the perpetuity payments will begin. In ...
RELATED TERMS
  1. Series 79

    A examination to ensure a candidate is qualified to become a ...
  2. Research Analyst

    A person who prepares investigative reports on equity securities. ...
  3. Series 34

    An exam required for individuals seeking to engage in off-exchange ...
  4. Financial Advisor

    One who provides financial advice or guidance to customers for ...
  5. Series 23

    An exam offered by the Financial Industry Regulatory Authority ...
  6. Series 28

    An exam given by the Financial Industry Regulatory Authority ...

You May Also Like

Related Articles
  1. Insurance

    Municipal Bond Tips For The Series 7 ...

  2. Retirement

    6 Proven Tips For Series 6 Success

  3. Insurance

    Tips For Passing The Series 6 Exam

  4. Professionals

    Banker Or Broker: Which Career Is Right ...

  5. Professionals

    Breaking Down Financial Securities Licenses

Trading Center