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Question 1 of 10
1. Question
What are the features of Private equity?
I. Private equity consists of any equity which isn’t quoted on any public exchanges.
II. Private investments might involve funding a private company to develop new technologies, or simply to be more successful in general.
III. Private equity also might involve purchasing a public company for the sake of making it private.
IV. Private equity often involves investors with enormous amounts of capital.
Correct
Private equity consists of any equity which isn’t quoted on any public exchanges. Private investments might involve funding a private company to develop new technologies, or simply to be more successful in general. Private equity also might involve purchasing a public company for the sake of making it private. Private equity often involves investors with enormous amounts of capital.
Incorrect
Private equity consists of any equity which isn’t quoted on any public exchanges. Private investments might involve funding a private company to develop new technologies, or simply to be more successful in general. Private equity also might involve purchasing a public company for the sake of making it private. Private equity often involves investors with enormous amounts of capital.
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Question 2 of 10
2. Question
How much should an Accredited investor make per year?
Correct
An accredited investor is an individual who makes at least $200,000 per year (or $300,000 with a spouse) or has a net worth of at least $1 million.
Incorrect
An accredited investor is an individual who makes at least $200,000 per year (or $300,000 with a spouse) or has a net worth of at least $1 million.
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Question 3 of 10
3. Question
What is not true about Whole life insurance?
Correct
Life insurance is a contract between an insurance company and an investor in which the insurance company guarantees a payment to the beneficiaries of the insured upon the death of the insured in exchange for premiums paid. Whole life insurance provides life insurance for the entirety of the purchaser’s life as long as premiums are maintained; thus it is called whole life. Whole life insurance will accrue a cash balance that increases each year the policy is in force. The insured may take loans against the cash value of the whole life policy should the need arise. While it is generally more expensive to the investor than term life insurance, term life insurance does not provide a cash balance and will expire according to the terms of the contract where whole life insurance will not.
Incorrect
Life insurance is a contract between an insurance company and an investor in which the insurance company guarantees a payment to the beneficiaries of the insured upon the death of the insured in exchange for premiums paid. Whole life insurance provides life insurance for the entirety of the purchaser’s life as long as premiums are maintained; thus it is called whole life. Whole life insurance will accrue a cash balance that increases each year the policy is in force. The insured may take loans against the cash value of the whole life policy should the need arise. While it is generally more expensive to the investor than term life insurance, term life insurance does not provide a cash balance and will expire according to the terms of the contract where whole life insurance will not.
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Question 4 of 10
4. Question
What are the features of Uniform Securities Act?
I. It provides specific criteria that establish the parties that are subject to regulation by a state Administrator under the Act.
II. It governs securities transactions as well as many of the various individuals and firms involved in conducting securities transactions or providing security-related investment advice.
III. It specifically defines the characteristics of the individuals and entities that are subject to regulation under the Act.
IV. It is applicable in any jurisdiction where it has been adopted as legislation.
Correct
The Uniform Securities Act provides specific criteria that establish the parties that are subject to regulation by a state Administrator under the Act. The Uniform Securities Act governs securities transactions as well as many of the various individuals and firms involved in conducting securities transactions or providing security-related investment advice. The Uniform Securities Act specifically defines the characteristics of the individuals and entities that are subject to regulation under the Act. The Uniform Securities Act is applicable in any jurisdiction where it has been adopted as legislation.
Incorrect
The Uniform Securities Act provides specific criteria that establish the parties that are subject to regulation by a state Administrator under the Act. The Uniform Securities Act governs securities transactions as well as many of the various individuals and firms involved in conducting securities transactions or providing security-related investment advice. The Uniform Securities Act specifically defines the characteristics of the individuals and entities that are subject to regulation under the Act. The Uniform Securities Act is applicable in any jurisdiction where it has been adopted as legislation.
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Question 5 of 10
5. Question
What powers does an Administrator have?
I. To adopt orders.
II. Issue rulings.
III. Issue subpoenas.
IV. Initiate and conduct investigations.
Correct
The Administrator has jurisdiction over the persons conducting such transactions as well as over the transactions themselves. The Administrator has the power to adopt orders, issue rulings, issue subpoenas, and initiate and conduct investigations. In addition, the Administrator is responsible for managing the registrations for persons engaged in various securities transactions. The registration management duties of the Administrator include determining whether a party’s registration should be approved, denied, suspended, or revoked.
Incorrect
The Administrator has jurisdiction over the persons conducting such transactions as well as over the transactions themselves. The Administrator has the power to adopt orders, issue rulings, issue subpoenas, and initiate and conduct investigations. In addition, the Administrator is responsible for managing the registrations for persons engaged in various securities transactions. The registration management duties of the Administrator include determining whether a party’s registration should be approved, denied, suspended, or revoked.
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Question 6 of 10
6. Question
When can an administrator revoke or suspend an application?
I. Qualification issues.
II. Application problems.
III. Security’s registration is incomplete.
IV. Historical circumstances.
Correct
The Administrator may choose to deny, suspend, or revoke an applicant’s registration if the applicant is not operating in accordance with the requirements of the Uniform Securities Act. The Administrator may deny, suspend, or revoke an applicant’s registration if the Administrator determines that there are significant problems with the party’s application. To begin with, the application must be complete. An Administrator may deny, suspend, or revoke an applicant’s registration based on the applicant’s previous history both in and out of the state. If the applicant has been convicted of a securities-related misdemeanor or any felony in any state at any time within the last ten years, the Administrator may deny, suspend, or revoke the applicant’s registration.
Incorrect
The Administrator may choose to deny, suspend, or revoke an applicant’s registration if the applicant is not operating in accordance with the requirements of the Uniform Securities Act. The Administrator may deny, suspend, or revoke an applicant’s registration if the Administrator determines that there are significant problems with the party’s application. To begin with, the application must be complete. An Administrator may deny, suspend, or revoke an applicant’s registration based on the applicant’s previous history both in and out of the state. If the applicant has been convicted of a securities-related misdemeanor or any felony in any state at any time within the last ten years, the Administrator may deny, suspend, or revoke the applicant’s registration.
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Question 7 of 10
7. Question
What stands true for Federally covered securities?
I. Federally covered securities are securities that are governed by federal laws and overseen by federal regulators.
II. The federal-level Securities and Exchange Commission (SEC) regulates the nationally traded securities.
III. States are prohibited from regulating federally covered securities and transactions.
IV. Securities offered by the federal government are always considered federally covered securities.
Correct
Federally covered securities are securities that are governed by federal laws and overseen by federal regulators instead of by the Uniform Securities Act and state Administrators. The New York Stock Exchange (NYSE), the NASDAQ National Market, and the NYSE MKT LLC (formerly NYSE Amex) list nationally traded securities. (NASDAQ-traded securities other than those on the National Market are subject to state regulation.) The federal-level Securities and Exchange Commission (SEC) regulates the nationally traded securities. States are prohibited from regulating federally covered securities and transactions. The prohibition against state regulation includes prohibitions against any state-required registration of entities or securities that are covered by federal securities regulation.
Securities offered by the federal government are always considered federally covered securities.Incorrect
Federally covered securities are securities that are governed by federal laws and overseen by federal regulators instead of by the Uniform Securities Act and state Administrators. The New York Stock Exchange (NYSE), the NASDAQ National Market, and the NYSE MKT LLC (formerly NYSE Amex) list nationally traded securities. (NASDAQ-traded securities other than those on the National Market are subject to state regulation.) The federal-level Securities and Exchange Commission (SEC) regulates the nationally traded securities. States are prohibited from regulating federally covered securities and transactions. The prohibition against state regulation includes prohibitions against any state-required registration of entities or securities that are covered by federal securities regulation.
Securities offered by the federal government are always considered federally covered securities. -
Question 8 of 10
8. Question
What is not true regrading Assessable stocks?
Correct
An assessable stock is a stock offered below value in exchange for an assumption of liability. The owner of an assessable stock is liable for the price difference between the offered price and the true value of the stock. Because the transfer of an assessable stock involves the transfer of the stock’s associated liability, the transfer of assessable stock is a regulated transaction even if the stock is transferred as a gift. Such transactions fall under the jurisdiction of the Administrator. Assessable stocks no longer exist. Gifts involving non- assessable stocks are handled differently. Gifts of non-assessable stocks are not considered regulated transactions and do not require the oversight of the Administrator.
Incorrect
An assessable stock is a stock offered below value in exchange for an assumption of liability. The owner of an assessable stock is liable for the price difference between the offered price and the true value of the stock. Because the transfer of an assessable stock involves the transfer of the stock’s associated liability, the transfer of assessable stock is a regulated transaction even if the stock is transferred as a gift. Such transactions fall under the jurisdiction of the Administrator. Assessable stocks no longer exist. Gifts involving non- assessable stocks are handled differently. Gifts of non-assessable stocks are not considered regulated transactions and do not require the oversight of the Administrator.
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Question 9 of 10
9. Question
The Uniform Securities Act gives the Administrator the power to establish rules to promote the implementation of the Act. What does these rules include?
I. The Administrator may create rules, modify existing rules, or withdraw rules.
II. The Administrator must publish all of the rules (and any modifications or withdrawals) that it issues.
III. The rules enacted by the Administrator apply to all.
IV. The rules that the Administrator issues must be consistent with the provisions of the Uniform Securities Act.
Correct
The Uniform Securities Act gives the Administrator the power to establish rules to promote the implementation of the Act. These rules include the following:
• The Administrator may create rules, modify existing rules, or withdraw rules.
• The Administrator must publish all of the rules (and any modifications or withdrawals) that it issues.
• The rules that the Administrator issues must be consistent with the provisions of the Uniform Securities Act.
• The rules enacted by the Administrator apply to all.Incorrect
The Uniform Securities Act gives the Administrator the power to establish rules to promote the implementation of the Act. These rules include the following:
• The Administrator may create rules, modify existing rules, or withdraw rules.
• The Administrator must publish all of the rules (and any modifications or withdrawals) that it issues.
• The rules that the Administrator issues must be consistent with the provisions of the Uniform Securities Act.
• The rules enacted by the Administrator apply to all. -
Question 10 of 10
10. Question
If a party requests the withdrawal of its registration, after how many days the withdrawal becomes effective?
Correct
A registered party also has the option of withdrawing its own registration without penalty as long as the Administrator has not already initiated a proceeding to suspend or revoke the registration. A withdrawn registration will not prevent the party from obtaining registration in the future. If a party requests the withdrawal of its registration, the withdrawal will become effective thirty days after the application for withdrawal is received.
Incorrect
A registered party also has the option of withdrawing its own registration without penalty as long as the Administrator has not already initiated a proceeding to suspend or revoke the registration. A withdrawn registration will not prevent the party from obtaining registration in the future. If a party requests the withdrawal of its registration, the withdrawal will become effective thirty days after the application for withdrawal is received.