Under both federal and state law, the concept of a discretionary account is defined. It would be considered discretion when an agent:

Under both federal and state law, the concept of a discretionary account is defined. It would be considered discretion when an agent:

A) picks the specific security that is the subject of a transaction.
B) can decide the specific price.
C) can decide the specific time at which the transaction will be made.
D) makes the decisions in the account once the client assures the agent that the proper authorizations are in the mail.


Answer: A) picks the specific security that is the subject of a transaction.

Which of the following statements is TRUE about sales of new issues under the Securities Exchange Act of 1934?

Which of the following statements is TRUE about sales of new issues under the Securities Exchange Act of 1934?

A) Credit may be used in purchasing new issues.
B) Installment payments are allowed on purchases.
C) The SEC determines what issues may be purchased on margin.
D) The use of credit to purchase new issues is prohibited for the first 30 days.


Answer: D) The use of credit to purchase new issues is prohibited for the first 30 days.

Which of the following statements is (are) TRUE regarding the jurisdiction of the SEC under the Securities Exchange Act of 1934?

Which of the following statements is (are) TRUE regarding the jurisdiction of the SEC under the Securities Exchange Act of 1934?

I. The SEC has jurisdiction over exchanges and SROs.
II. The SEC has jurisdiction over broker/dealers, agents, investment advisers, and representatives that III. are required to be registered under federal law.
IV. The SEC has jurisdiction over banks and savings and loans regarding their securities activities.

A) II only.
B) I, II and III.
C) I and II.
D) I only.


Answer: C) I and II.

What is the purpose of the Securities Exchange Act of 1934?

What is the purpose of the Securities Exchange Act of 1934?

A) It regulates the persons involved in the secondary market.
B) It provides requirements relating to new issues.
C) It provides policies relating to unethical business practices.
D) It provides standards among the states.


Answer: A) It regulates the persons involved in the secondary market.

Which of the following is TRUE of SEC Commissioners under the Securities Exchange Act of 1934?

Which of the following is TRUE of SEC Commissioners under the Securities Exchange Act of 1934?

A) They are appointed by a senate panel.
B) They are appointed for life.
C) They may not invest in any securities other than those issued or guaranteed by the U.S. government.
D) Their political affiliation is of no concern.


Answer: C) They may not invest in any securities other than those issued or guaranteed by the U.S. government.

The Securities Exchange Act of 1934 calls for the registration of many different entities involved in the securities business, such as exchanges and broker/dealers. The Act also requires registration of securities information processors such as:

The Securities Exchange Act of 1934 calls for the registration of many different entities involved in the securities business, such as exchanges and broker/dealers. The Act also requires registration of securities information processors such as:

I. CNBC.
II. "Investor's Business Daily" .
III. Reuters.
IV. The "Pink Sheets".

A) I and II.
B) I and IV.
C) II and III.
D) III and IV.


Answer: D) III and IV.