Under the Uniform Securities Act, which of the following actions is permitted for a registered sales ...

By Investopedia Staff AAA
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. The Chairman of Bright Star Life and Casual had a meeting with his broker this afternoon ...

    The correct answer is b) Insider trading would include information that is material and non-public. Certainly, a poor earnings ...
  2. Which statements about common shareholder rights are FALSE? I. A shareholder may ...

    The correct answer is a. I should be the the other way around: convertible bond holders can exchange their bonds for shares. ...
  3. If ABC Company had the following Income Statement figures, what is the Operating ...

    The correct answer is c): The operating margin is a very useful test of the efficiency of corporate management. Operating ...
  4. A customer sells a 6% corporate bond on Tuesday October 4th for regular settlement ...

    Free info on financial certification exams including study guides, exam questions, and much more!
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