3134761
Description
Flashcards by Tammara0214, updated more than 1 year ago
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Created by Tammara0214
over 9 years ago
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| Question | Answer |
| * Blue Sky Laws * | Each State has its own securities regulations which are drawn from this master template. |
| * Blue Sky Laws * | This is also known as the Uniform Securities Act. |
| * Blue Sky Laws * & *Uniform Securities Act* | This was created to protect investors against securities fraud by requiring sellers of new issues to register their offerings and provide financial details. |
| * Blue Sky Laws * & *Uniform Securities Act* | The USA master template allows investors to base their judgments on data that, while not approved by the administrator, has been the subject to some official review. |
| * Blue Sky Laws * & *Uniform Securities Act* | The main objective is to protect individual investors from fraudulent activity |
| * USA * | This is not an actual set of laws but a guidance for each state to use as a template when forming securities related legislation. |
| * USA * | The origin of this came from the mass amount of securities related fraud that occurred in the early 1900s. |
| * USA * | This and the Blue Sky Laws arose to prevent securities fraud and protect investors. |
| * USA * | This is a model legislation or template that each state uses in drafting its own legislations and not an actual legislation. |
| * Administrator * | This is an individual responsible for administering and enforcing the securities laws in the state. |
| * Agent * | This is an individual other than a broker dealer who represents a broker dealer in effecting or attempting to effect purchases or sales of securities |
| * Agent * | This is a individual other than a broker dealer who represents an issuer in effecting or attempting to effect purchases or sales of securities. |
| * Agent * | This person is also known as a registered representative |
| * Agent * | This person generally works for a broker dealer although he or she can be a person representing an issuer. |
| *Bank* | This is defined as a member bank of the Federal Reserve System |
| *Bank* | This is defined as a banking institution organized under the laws of the US |
| *Bank* | This is defined as any other banking institution whether incorporated or not, doing business under the laws of a State or the US, a substantial portion of the business which consists of receiving deposits or exercising fiduciary powers similar to those permitted to be exercised by national banks under the authority of the Comptroller of the Currency. |
| * Broker Dealer * | A person engaged in the business of effecting transactions in securities for the account of others or for the person's own account. |
| A Broker Dealer does not include what 3 persons (not related to state location) | 1. Agent 2. Issuer 3. Bank or Savings Institution |
| A Broker Dealer does not include a person who has no place of business in the state if he effects what type of transactions in the state exclusively with or through.... | a. the issuers of the securities involved on the transactions, b. other broker dealers or c. banks, savings institutions, trust companies, insurance companies, investment companies (as defined in the investment company act of 1940), pension or profit sharing trusts, or other financial institutions or institutional buyers whether acting for themselves or as trustees. |
| A Broker Dealer does not include what type of person as it relates to maintaining a place of business | If the person is licensed in State A in which the firm maintains a place of business in State B and the only business the firm does in State A is with existing customers of the firm who are no longer a resident of State A. |
| What is the difference between a broker and a dealer? | Broker is a securities firm making transactions for the account of others for a commission. Dealer is a securities firm making transactions for its own account and inventory for a markup on the securities sold. |
| What are the ABCs of a Broker Dealer Defined? | Agent/Broker/Commissions Principal/Dealer/Markup |
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