What is the purpose of the Uniform Securities Act Quizlet?
DEFINITION of 'Uniform Securities Act'. The Uniform Securities Act is a model law created as a starting point for state-level securities regulation. The purpose of the Uniform Securities Act is to deal with securities fraud at the state level and to assist the Securities and Exchange Commission (SEC) in enforcement and regulation. Next Up.
Which of the following is not a securities?
Commodities such as gold, silver, wheat, and pork bellies are not securities. Options to purchase or sell commodity futures, options on stocks, and stocks are securities.
Who is an institutional buyer under the Uniform Securities Act?
An institutional buyer is defined under the Uniform Securities Act as: StatusA A. an institution with at least $100 million of assets available for investment StatusB B. an accredited investor as defined under Rule 506 of Regulation D of the Securities Act of 1933 Correct C. any person defined by the Administrator by rule or order
What is a non-issuer transaction under the Uniform Securities Act?
The resale of limited partnership interests originally offered in a private placement Under the Uniform Securities Act, which of the following would be defined as a "non-issuer" transaction? Ans. The sale of a security effected on the New York Stock Exchange floor
Which of the following choices would be considered a stock offering under the Uniform Securities Act?
According to the Uniform Securities Act, the security that the investor received as a bonus would be considered a stock offering.
Which of the following are defined as a security under the Uniform Securities Act?
A "security" is defined as an investment in a common enterprise for profit with management provided by another party (that would be a "third" party). Generally, securities do not have a guaranteed rate of return.
Which of the following is not defined as a security under the Uniform Securities Act?
Which of the following is NOT defined as a security under the Uniform Securities Act? C; Under the Act, IRAs and Keoghs are not defined as securities. Variable annuities are securities under the Act (since the purchaser bears the investment risk), as are unit investment trusts and commodity option contracts.
Which of the following securities are exempt under the Uniform Securities Act?
Terms in this set (8) Which of the following securities are EXEMPT under the Uniform Securities Act? D; The Uniform Securities Act exempts Industrial Loan Association issues; Insurance Company issues; Federal Credit Union issues; and Bank and Savings and Loan issues (among others).
Which of the following transactions is not exempt under the Uniform Securities Act?
Under the Uniform Securities Act, which of the following would NOT be considered an exempt transaction? Even though the bonds are an exempt security, the sale to an individual client is not an exempt transaction. Sales to institutions, sales by fiduciaries, or unsolicited transactions are all exempt.
Which of the following is defined as a broker-dealer under the Uniform Securities Act?
Under the Uniform Securities Act, a "broker-dealer" is defined as a person that engages in the business of effecting securities transactions for the account of others; or a person that engages in the trading of securities for its own account.
Which of the following is not an offer to sell or sale under the Uniform Securities Act?
Sales involve any contract or disposition for value; solicitations and attempts to dispose are offers. Under the Uniform Securities Act, an offer and sale does NOT exist if it is: the result of a class vote by stockholders regarding a merger or consolidation.
Which of the following is not defined as a broker-dealer under the Uniform Securities Act?
The best answer is A. Excluded from the definition of a broker-dealer under Uniform State Law are persons with no place of business in the State that effect transactions exclusively with issuers; other broker-dealers; depository institutions; insurance companies; investment companies; and pension trusts.
What is exempt offering?
Exempt Offering means any offering by the Company of shares of Common Stock (i) in connection with or pursuant to any benefit, compensation, incentive or savings plan or program in which any of the officers, directors, employees or independent contractors of the Company or any of its subsidiaries participate, (ii) as ...
What are the 5 exempt securities?
Certain types of securities and certain transactions are deemed by the SEC to be exempt from registration requirements. Exempt Security - Common types of exempt securities are government securities, bank securities, high-quality debt instruments, non-profit securities, and insurance contracts.
Which offering is considered an exempt transaction?
Rule 147 offerings, or intrastate offerings, are also exempt. Transactions with financial institutions, fiduciaries, and insurance underwriters may be considered exempt. Unsolicited orders, which are those executed through a broker at the request of his or her client, are also considered exempt.
What is an issuer in securities?
Under the Uniform Securities Act of 1956, as amended, an issuer is defined as any person: . A. engaged in the sale of new issue offerings to the public . B. who issues or proposes to issue a security. C. engaged in the sale of non-exempt securities offerings to the public .
What is an agent in a broker-dealer?
An "agent" of a broker-dealer (Choice III), is an individual associated with a broker-dealer, who represents the broker-dealer in effecting securities transactions. An agent is not a broker-dealer, making Choice III wrong. If an agent of a broker-dealer engages in so-called "private securities transactions.".
What is an agent in insurance?
An "agent" is an individual ( not a " person" as defined by the Uniform Securities Act) who represents a broker-dealer or issuer in effecting securities transactions. An insurance sales person who sells variable annuities is an agent because variable annuities are defined as a security.
Is an individual an agent under the Securities Act?
The best answer is C. If an individual works for either a broker-dealer or an issuer and sells securities of that issuer, that individual is defined as an agent under the Act. In this case, because he is being compensated by both the issuer and the broker-dealer, he or she would be an agent of both.
Do you have to register a broker in Choice A?
However, if a firm that effects securities trades has an office in a State, it is defined as a broker-dealer and must register in the State. Thus, the broker-dealer in Choice A must register and the broker-dealer in Choice B is not required to register.
Can an agent be registered with two different brokers?
An agent is registered with two affiliated broker-dealers who have an office in the same location. The best answer is C. As a general rule, an agent cannot be registered with two different broker-dealers at the same time under the Uniform Securities Act.
Do you need to register as a broker-dealer for a finder?
"Finders" operate in a grey area, which may, or may not, require registration as a broker-dealer. First of all, if the acquisition transaction only involves the sale of assets, as opposed to the sale of securities, then there is no requirement to be registered as a broker-dealer.
Why is the Uniform Securities Act needed?
Uniform Securities Act Explained. Because not all investments are covered federally and not all investment dealers are registered at the federal level, the SEC cannot protect all investors and pursue all security violations. This created the need for state-level regulations such as the Uniform Securities Act to further protect investors.
What is the issue with regulating securities from two different levels of government?
One of the issues with regulating securities from two different levels of government is the potential for duplication . The Uniform Securities Act outlines the authority and role of state and federal regulators in dealing with securities fraud. 1 For example, many fraudulent acts occur at the local level with pyramid schemes and other scams.
What is the purpose of securities regulation?
The intent of securities regulations, whether at the state or federal levels, is to prevent the fraudulent sale of securities to investors. Regulatory efforts stem from three primary elements. Registration is required for initial public offerings.
How did the Securities Act evolve?
The act evolved through a series of amendments due to earlier regulations not being adopting consistently across the country. Some jurisdictions did not enact each securities act introduced by the Uniform Law Commissioners.
Why is the Securities Act important?
The act provides more structure and consistency in enforcement authority across states as well as in coordination with federal authority regarding the prosecution of securities fraud.
Who must be registered in securities?
Those who deal in securities, specifically investment advisers, broker-dealers, and their representatives and agents, must also be registered. In order to prohibit and prevent securities fraud, regulatory agencies must also have enforcement authority to address such actions.
