GiantMen's Clothiers is registering with the state of Arkansas to issue securities. Because GiantMen's meets the Uniform Securities Act criteria to register by filing, the application will contain all but one of the following. Which is the incorrect choice?
Answer(s): B
As it regulates the filing of securities in the states, the Uniform Securities Act mandates that a statement of eligibility, a statement describing the offering as well as the issuer's name, address and form of organization must accompany the filing. It must also include a copy of the prospectus that was filed with the SEC (not the state administrator)
Josephine Barker is an investment advisor representative with Leading Edge Capital Markets, a federally registered investment advisor in Miami. Most of her clients are located in Florida, Georgia and South Carolina and Josephine plans to open an office in Georgia to service a high-growth area. What will Josephine need to do in order to satisfy registration requirements for the Georgia office?
Answer(s): D
Federally registered investment advisors and their representatives are only required to register, on a state level, with the states in which they operate a place of business. If the advisor or representative maintains a place of business in more than one state, they must be registered in each state. Josephine would not need to register in South Carolina since she does not operate a place of business in that state.
Mandy Edwards owns 100 shares in the PruRock Value Fund. She could use a little extra money and calls the mutual fund company and sells 50 shares. When will she receive her check?
The redemption of shares that have been issued by an open-end investment company, also known as a mutual fund, must be paid to the client within seven calendar days of the request for redemption
Under the Uniform Securities Act, which of the following transactions are considered exempt transactions:
Answer(s): A
All of the above transactions are considered exempt under the Uniform Securities Act except for an offer to sell bonds presented without federal registration. The offer to sell bonds would otherwise be exempt if a registration statement had been filed with the SEC and the state administrator, but a sale of that bond is prohibited until the registration is in effect
Tara is the executor and sole heir for her parents'' modest estate. Upon their death, she receives instructions that she will inherit all of their money on the condition that she invest according to a Prudent Person Rule. Her parents know that Tara has been a bit of a spendthrift and they want her to use her inheritance wisely. Which of the following best represents their philosophy?
Reasonable and prudent are somewhat synonymous in this example. The Prudent Man/Person Rule is an investment standard applied to fiduciaries or trustees to guide their actions. The rule suggests that investment decisions should be made wisely and intelligently, as a prudent person would. The basic premise of the rule is to preserve capital and create a reasonable level of growth
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