Chapter2: Registration

Question 0

CRD Central Registration Depository

Answer 0

For broker-dealers and agents to file required documents

Question 1

Blue sky laws(uniform securities act)

Answer 1

1956, so broker-dealers can operate in different states without fulfilling requirements in each state.

Question 2

Requirements to register

Answer 2

Application and consent of service of process and filing fee; minimum capital or bond coverage

Question 3

Exemption to registering with state

Answer 3

Certain Issuers- gov’ts, municipalities and nonprofits
Fed covered securities- exchange listed securities, investment company shares
Exempt transactions- transactions that don’t deal with the public

Question 4

3 ways to register a security

Filing, coordination, qualification

Answer 4

Filing- established companies to use prospectus with sec as filing document for state
Coordination- any company, when state and sec filing at same time.
Qualification- most detailed, identity, background, earnings of officers, director, 10% of shareholders