Flashcards in Unit 1 Deck (16):
Under USA what's are the Maximum penalties for a securities related felony
$5000 3 years in prison
Order ticket includes
1. Account number
2. Agents name
3. Broker dealers name
4. Number of shares, limit
Investment companies must send reports to shareholders.
BD explicitly or implicitly endorses or approves the content of a third party
Securities that are exempt from state registration.
-US and Canadian government and municipal securities
- foreign government securities
- depository institutions
- insurance company securities
- public utility securities
- federal covered securities
- securities issued by nonprofit organizations
- securities issued by nonprofit cooperatives
- securities of employee benefit plan
- commercial paper, bankers acceptances
Exempt from regulatory control of the state administrator.
Business continuity and succession plan
Every investment advisor shall establish, implement, and maintain written procedures relating to a business continuity plan.
What are not securities?
-Insurance that isn't variable
- interest in a retirement plan
A Sale includes
Transfer of security in which money or something valuable is involved.
Offer to sale or offer is
- any security delivered with, or as a bonus of an account of, a purchase of securities or anything else(car, jewlary)
- a purported gift of assessable stock.
- sale or offer of a warrant
What 3 expenses involving brokerage accounts are not included in the fee disclosure template?
2. Mark ups or downs
3. Advisory fees
What is found on an order ticket?
- Account number
- Execution price
- Time of entry and execution
- terms and conditions of the order (limit, market, stop)
Attempts to identify trends so they can predict market changes.
They review past performance using charts and graphs.
Attempts to value a stock by examining a company's financial condition and growth potential.
Fees not included in disclosure agreement
2. Mark up and markdowns
3. Advisory fees