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| Section | Weight | Objectives |
|---|---|---|
| Topic 1: State Securities Acts and Related Rules | 60% | - Uniform Securities Act principles
|
| Topic 2: Regulation of Investment Advisers and Representatives | - Investment Adviser registration
| |
| Topic 3: Ethical Practices and Fiduciary Obligations | 40% | - Client-related rules
|
| Topic 4: Regulation of Broker-Dealers and Agents | - Broker-Dealer definitions and requirements
|
Which of the following is a security as defined by the Uniform Securities Act (USA)?
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Noah Aull is an investment adviser representative with Canto Investment Advisers. A client has called and
told Noah that he heard about a firm that had recently completed an IPO at a party he had attended that
weekend and instructed Noah to purchase shares of the company, which was now trading on the OTC
Bulletin Board. Noah did some research and felt the company was far too risky an investment for this
client, so he did not execute the trade. This turned out to be fortunate for his client since the firm became
insolvent within six months of its IPO. Has Noah done anything wrong?
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Which of the following does not necessarily have to be included in the contract between an investment
adviser and an individual client, according to the Uniform Securities Act (USA)?
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A tombstone advertisement is
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A broker-dealer cannot legally be
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