Location: Chicago
Age: Late-20s
Profession: Investment Representative
Score: 64% - Failed
College major: N/A

The Study Method
Although Jason failed the test, he thought the materials he used were helpful. However, he would recommend taking the practice tests as much as possible.

Exam Question Recall

  • Jason specifically remembered many questions regarding the Blue Sky Laws; there were also several about not accepting cash, ever.
     
  • He remembered a questions about what is not defined as a security - you will want to know the definition of a security inside and out.
     
  • Jason also recalls questions about what is not considered a person under the USA. A similar question will be on the test. In addition, remember that minors are not legal persons.

 

 

Exam Tips and Tricks
The legal definition of "person" is going to show up on the test somewhere, so make sure you know it!

There are two types of persons:
1. A natural person (i.e., a human being); and
2. A legal person (i.e., an entity such as a corporation or government).

Corporations, partnerships, broker-dealers, investment advisers etc. are all referred to as PERSONS, and can violate the USA! Do not let a tricky question regarding who (or what!) is a person fool you on the test!

Though Jason could not remember the exact question, he did recall seeing several that had to do with an agent or broker-dealer registered in one state and being solicited by an individual in another.

Two notes:

  • Unsolicited orders from another state do not require registration in that state; and
     
  • Orders from an existing client from another state do not require registration in the state the client is visiting, so long as the client is not staying for more than 30 days!
     

Licenses are due for renewal when?In most circumstances, licenses are due for renewal at the calendar end of each year. Anyone attempting to effect a securities transaction, or benefiting (i.e., commissioning) from a securities-related transaction, must register with the state!

If He Could Turn Back Time ...
Commenting on what he would have done differently, Jason admitted that he had multiple tapes that he did not use. If he could do it again, he would have listened to the tapes more often, perhaps in the car while he was commuting to work.

Jason also recommended that if you can study with a partner, or in a small group, it would help tremendously. More importantly, study with someone in the same area of the financial industry, with a similar background.

Much like Dave, Jason states that going into the exam with confidence makes a big difference. He listened to the tapes in the car on the way to the exam. He also sat in the car for an hour reviewing the tapes before the exam. In addition, he reviewed four or five pages of notes and simply tried to cram too much information in at the last moment. [Note from Author: In the industry we call this "analysis paralysis", when you simply have too much information at one time. A good idea is to give yourself plenty of time to study before the test, and then get a good night's sleep beforehand. On the morning before the test, go over an outline of the exam or USA, and try to mentally fill in the blanks. Trying to cram an hour before an exam usually does more harm than good!]

Final Words of Advice
Jason's advice for someone about to take the exam was, "Give yourself more than a month to study. You need at least six months. It's probably a good idea to study at least fours hours a day, while giving yourself plenty of time to let the material sink in!"

Jason did not read the materials very thoroughly. Doing what Jason did, study-wise, is probably a sure bet to probably not pass the exam. Sorry Jason!

Jamie

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