FINRA Uniform Securities Agent State Law 2

Question 1

Under the Uniform Securities Act, which of the following transactions is considered a 'non-issuer transaction'?

Accepted Answer

An investor selling previously purchased stock through a broker-dealer

Answer

A non-issuer transaction involves the sale of securities by someone other than the issuer, such as an investor reselling shares in the secondary market.

Question 2

A state securities administrator may deny registration of a broker-dealer if the firm's principals:

Accepted Answer

Have been convicted of a securities-related felony within the past 10 years

Answer

The USA allows the administrator to deny registration if key personnel have been convicted of securities-related felonies within the past 10 years.

Question 3

Which of the following is TRUE regarding the registration of securities under the Uniform Securities Act by coordination?

Accepted Answer

It becomes effective simultaneously with the federal registration under the Securities Act of 1933

Answer

Registration by coordination allows the state registration to become effective at the same time as the federal Securities Act of 1933 registration.

Question 4

An agent who receives a customer order to buy a security but instead purchases the security for the agent's own account and sells it to the customer at a higher price has committed:

Accepted Answer

Interpositioning

Answer

Interpositioning occurs when a broker-dealer or agent places themselves between the customer and the best available market price, profiting at the customer's expense.

Question 5

Under the USA, a 'federal covered adviser' is exempt from state registration requirements but must:

Accepted Answer

File a notice filing and pay fees in states where it has clients above a threshold

Answer

Federal covered advisers are exempt from state registration but must submit notice filings and pay applicable fees in states where they have clients.

(FINRA) FINRA Exams Practice Test

(FINRA) FINRA Exams Practice Test

FINRA Uniform Securities Agent State Law 2