Mrs Daley has just met with her registered investment advisor, Keith Maylor, and opened a new account that she is very excited about. She likes to trade often within the account and feels that she will enjoy major cost savings as a result of the new account structure Keith has set up for her. This is known as:
Answer(s): A
Mrs Daley's new wrap fee account will allow her to pay one specified fee for advisory services and the execution of her transactions. With a traditional managed account program, Mrs. Daley was previously charged advisory fees as well as a commission for each transaction
Peterson Jewels plans to offer $200,000 in securities to finance its expansion to two neighboring states; it does not plan to register federally with the SEC. What method of filing is required at the state level?
Answer(s): C
Peterson Jewels will need to register by qualification and, as is the case with most state securities laws, will need to meet certain conditions and provide pertinent, required information to the state administrator. Most small and local companies who do not plan to register with the SEC will register by qualification
Under the Uniform Securities Act, an investment advisor is asked to furnish financial reports as required by:
Answer(s): D
Under the Uniform Securities Act, the state administrator governs the rules and regulations, including the registration and post-registration requirements, of investment advisory professionals
Who appoints the five commissioners of the Securities and Exchange Commission
The President appoints the five commissioners of the Securities and Exchange Commission with the advice and consent of the Senate. Commissioners are required to serve full-time and are also prohibited from engaging in securities transactions during their term. Furthermore, no more than three of the commissioners may belong to the same political party
Which of the following is NOT true regarding margin accounts?
Answer(s): B
It is acceptable for a broker to open a cash account without obtaining a customer's signature. However, it is not ethical to execute transactions on margin without gaining a customer's signature immediately following the first transaction. All of the other choices are correct
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