Q:
Under the Uniform Securities Act, which of the following actions is permitted for a registered sales representative?
a) Make trades in a state where the sales representative is registered, but the broker-dealer is not.
b) Make trades in a state where the sales representative is not registered, as long as the broker-dealer is registered in that state.
c) Solicit trades for non-exempt unregistered securities, as long as the sales representative is registered in the state.
d) Offer investment advisory services as long as no separate fee is charged and the services are incidental to his or her brokerage services.
A:

The correct answer is d).
A sales representative may not make trades in a state unless both the sales representative and the broker-dealer are registered in the state. In addition, they may not solicit trades for non-exempt unregistered securities, (although it is permitted for unregistered exempt securities such as municipal bonds).
A sales representative is permitted to provide investment advisory services, as long as no separate fee is received and the services are incidental to the brokerage services.


RELATED FAQS

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

    A sales representative is permitted to take all of the following actions EXCEPT: a. Offer investment advice to clientsb. ...
  2. 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 ...
  3. A sales representative or broker-dealer that violates the Uniform Securities Act ...

    The correct answer is a. The sales representative or broker-dealer is required to pay interest, court and attorney’s fees ...
  4. ABC Broker-dealer has no office in state and transacts fewer than five trades during ...

    The correct answer is b. Under these circumstances, the broker-dealer is not required to register with the state and the ...
  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. Under the Uniform Securities Act, registration with the Administrator as an investment ...

    The correct answer is c. I is incorrect, since broker-dealers or their agents who don’t receive a fee for making investment ...
RELATED TERMS
  1. Unregistered Shares

    Investopedia explains: Unregistered shares are securities that ...
  2. Global Registered Share

    A share issued and registered in multiple markets around the ...
  3. Registered Representative - RR

    A person who works for a brokerage company that is licensed by ...
  4. Series 72

    An exam administered by the Financial Industry Regulatory Authority ...
  5. Broker-Dealer

    A person or firm in the business of buying and selling securities, ...
  6. Registered Holder

    Shareholders who hold their shares directly with a company.
Hot Definitions
  1. Leverage

    1. The use of various financial instruments or borrowed capital, such as margin, to increase the potential return of an investment. ...
  2. Trumponomics

    Trumponomics is a term for the economic policies of President Donald Trump.
  3. Universal Health Care Coverage

    An organized healthcare system that provides healthcare benefits to all persons in a specified region. Many countries, such ...
  4. Davos World Economic Forum

    The annual meeting of the World Economic Forum hosted at Davos—a small ski town in Switzerland—in January each year is among ...
  5. Smart Home

    A convenient home setup where appliances and devices can be automatically controlled remotely from anywhere in the world ...
  6. Efficient Frontier

    A set of optimal portfolios that offers the highest expected return for a defined level of risk or the lowest risk for a ...
Trading Center