Question 1
Anything that can be exchanged for value that involves a risk to the holder; also represents
an investment in an entity managed by a third party
CORRECT ANSWER
security
Question 2
The Supreme Court used the _____ ____ to determine a security.
CORRECT ANSWER
Howey test
Question 3
The Howey test states that a security must meet the following 4 characteristics:
1) It must be an _______ of _____.
2) It must involve a _____ ______.
3) It must give the investor an _______ of a _____.
4) It must entail the _______ of a ____ ____.
CORRECT ANSWER
investment money common enterprise expectation profit management third party
1
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,Question 4
the term, as it is used in the USA, refers to any entity that may enter into a legally binding
contract, and therefore, may transact business in the securities markets
CORRECT ANSWER
person
Question 5
Agreeing to buy or sell a security represents a ______ _____ _____.
CORRECT ANSWER
legally binding contract
Question 6
Examples of a _______: natural person, corporation, trust, government organization,
partnership, joint stock company, sole proprietor, association, unincorporated
organization.
CORRECT ANSWER
person
Question 7
an individual or entity that may not enter into a legally binding contract and therefore may
not transact business in the securities market
CORRECT ANSWER
nonperson
2
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,Question 8
Examples of a _______: a minor, someone deemed to be legally incompetent, a deceased
individual.
CORRECT ANSWER
nonperson
Question 9
a person or a firm that maintains a place of business and affects transactions in the
securities markets for its own account or for the account of others; must be registered in
its home state as well as in the states of its individual clients
CORRECT ANSWER
broker dealer
Question 10
A broker dealer must be registered in its ____ ____ as well as in the states of its ______
____.
CORRECT ANSWER
home state individual clients
Question 11
Broker dealer is NOT: an _____, a ____, a _____ and ____, a person with no _____ of
______ in the state who deals exclusively with financial _______ or ______, a person who
conducts business with ______ clients who do not _____ in the state and are in the state
for less than ____ days.
CORRECT ANSWER
agent bank savings loan place business institutions issuers existing reside 30
3
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, Question 12
An _____ or ______ _______ may only be an individual (natural person) who represents
the issuer or a broker dealer in the purchase and sale or the attempted purchase and sale
of securities with the public.
CORRECT ANSWER
agent registered representative
Question 13
Agents and registered representatives are required to register in their _____ _____, their
state of ______, and the state of _______ of their ______.
CORRECT ANSWER
home state employment residence customers
Question 14
Agents are NOT required to register if:
- They represent the _____ or a _____ _____ in an _______ transaction.
- They represent a _____ or a _____ ___ ____ in the _____ of securities.
CORRECT ANSWER
issuer broker dealer underwriting bank savings and loan issuance
Question 15
Agents who represent _____ _____ are not required to register.
CORRECT ANSWER
4
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Anything that can be exchanged for value that involves a risk to the holder; also represents
an investment in an entity managed by a third party
CORRECT ANSWER
security
Question 2
The Supreme Court used the _____ ____ to determine a security.
CORRECT ANSWER
Howey test
Question 3
The Howey test states that a security must meet the following 4 characteristics:
1) It must be an _______ of _____.
2) It must involve a _____ ______.
3) It must give the investor an _______ of a _____.
4) It must entail the _______ of a ____ ____.
CORRECT ANSWER
investment money common enterprise expectation profit management third party
1
@https://www.stuvia.com/user/thestudyvault
,Question 4
the term, as it is used in the USA, refers to any entity that may enter into a legally binding
contract, and therefore, may transact business in the securities markets
CORRECT ANSWER
person
Question 5
Agreeing to buy or sell a security represents a ______ _____ _____.
CORRECT ANSWER
legally binding contract
Question 6
Examples of a _______: natural person, corporation, trust, government organization,
partnership, joint stock company, sole proprietor, association, unincorporated
organization.
CORRECT ANSWER
person
Question 7
an individual or entity that may not enter into a legally binding contract and therefore may
not transact business in the securities market
CORRECT ANSWER
nonperson
2
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,Question 8
Examples of a _______: a minor, someone deemed to be legally incompetent, a deceased
individual.
CORRECT ANSWER
nonperson
Question 9
a person or a firm that maintains a place of business and affects transactions in the
securities markets for its own account or for the account of others; must be registered in
its home state as well as in the states of its individual clients
CORRECT ANSWER
broker dealer
Question 10
A broker dealer must be registered in its ____ ____ as well as in the states of its ______
____.
CORRECT ANSWER
home state individual clients
Question 11
Broker dealer is NOT: an _____, a ____, a _____ and ____, a person with no _____ of
______ in the state who deals exclusively with financial _______ or ______, a person who
conducts business with ______ clients who do not _____ in the state and are in the state
for less than ____ days.
CORRECT ANSWER
agent bank savings loan place business institutions issuers existing reside 30
3
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, Question 12
An _____ or ______ _______ may only be an individual (natural person) who represents
the issuer or a broker dealer in the purchase and sale or the attempted purchase and sale
of securities with the public.
CORRECT ANSWER
agent registered representative
Question 13
Agents and registered representatives are required to register in their _____ _____, their
state of ______, and the state of _______ of their ______.
CORRECT ANSWER
home state employment residence customers
Question 14
Agents are NOT required to register if:
- They represent the _____ or a _____ _____ in an _______ transaction.
- They represent a _____ or a _____ ___ ____ in the _____ of securities.
CORRECT ANSWER
issuer broker dealer underwriting bank savings and loan issuance
Question 15
Agents who represent _____ _____ are not required to register.
CORRECT ANSWER
4
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