Q:

ABC Broker-dealer has no office in state and transacts fewer than five trades during a 12-month period. Given these facts, which of these statements are true?
I. The broker-dealer is required to register with the Administrator
II. The broker-dealer is not required to register with the Administrator
III. The transactions are considered exempt
IV. The transactions are not considered exempt
a) II & IV
b) II & III
c) I & III
d) I & IV

A:
The correct answer is b.
Under these circumstances, the broker-dealer is not required to register with the state and the transactions are considered exempt. This is considered an isolated non-issuer transaction exemption.

MORE FAQS

  1. If a sales representative moves from one broker-dealer to another ...

  2. Under the Uniform Securities Act, registration with the Administrator as an investment adviser is required ...

  3. Which of the following signatures are required on a client’s new account form ...

  4. Which of the following deliveries for a 600 share order, broker-dealer to broker-dealer ...

  5. When a corporation wishes to open a margin account with a broker-dealer ...

  6. A sales representative or broker-dealer that violates the Uniform Securities Act when offering or selling ...

  7. When an agent of a broker-dealer begins employment with another broker-dealer ...

  8. Under the Uniform Securities Act, the Administration is empowered to perform which of the following ...

  9. Federal covered securities are subject to which of the following requirements ...

  10. Which of the following, under the NASD Conduct Rules, would constitute a complaint ...

  11. Which TWO statements are TRUE about writing covered calls? I ...

  12. Which of the following are not types of open-end management investment companies ...

  13. Which statements about common shareholder rights are FALSE? I. A shareholder may exchange shares to ...

  14. Which of the following statements is (are) true with respect to setting the proper constraints in managing ...

  15. Which of the following are tools that are employed by the Federal Reserve in its efforts to control the money supply?

  16. Are dividends the best way to make money for retirement?

  17. How many attempts at each CFA exam is a candidate permitted?

  18. What's the average salary of a financial advisor?

  19. Why is Hong Kong considered a tax haven?

RELATED FAQS

  1. If a sales representative moves from one broker-dealer to another ...

    The correct answer is b. I, II and III are correct since all parties are required to notify the Administrator.
  2. 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 ...
  3. Which of the following signatures are required on a client’s new account form ... ...

    The correct answer is B. While local practices of a broker-dealer might require the client to sign the form, even when opening ...
  4. Which of the following deliveries for a 600 share order, broker-dealer to broker-dealer ...

    The correct answer is a) Good delivery between broker-dealers means “round lots” of 100 shares, or units that can be made ...
  5. When a corporation wishes to open a margin account with a broker-dealer ...

    The correct answer is b. Whenever a corporation opens an account with a broker-dealer, a resolution by the board of directors, ...
  6. 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 ...
RELATED TERMS
  1. Principal Orders

    A type of order carried out by a broker-dealer which involves ...
  2. Upstairs Market

    The trading of securities, such as stocks, that occurs within ...
  3. Broker-Dealer

    A person or firm in the business of buying and selling securities, ...
  4. Stuffing

    The act of selling undesirable securities from the broker-dealer's ...
  5. Average Ticket

    1. For credit card vendors, a business's average ticket refers ...
  6. Exempt Income

    Certain types or amounts of income not subject to federal income ...
Hot Definitions
  1. Derivative

    A security with a price that is dependent upon or derived from one or more underlying assets.
  2. Fiduciary

    A fiduciary is a person who acts on behalf of another person, or persons to manage assets.
  3. Sharpe Ratio

    The Sharpe Ratio is a measure for calculating risk-adjusted return, and this ratio has become the industry standard for such ...
  4. Death Taxes

    Taxes imposed by the federal and/or state government on someone's estate upon their death. These taxes are levied on the ...
  5. Retained Earnings

    Retained earnings is the percentage of net earnings not paid out as dividends, but retained by the company to be reinvested ...
  6. Demand Elasticity

    In economics, the demand elasticity refers to how sensitive the demand for a good is to changes in other economic variables. ...
Trading Center