Mina is a new agent with SecureMoney Broker-Dealers and is struggling to make ends meet. She gets a job as a receptionist at a fitness club on the weekends to generate more income.
Which of the following is true?

• A. Mina needs to send notice to the state Administrator informing him of her extracurricular activity.
• B. Mina should have notified SecureMoney in writing before signing on to work at the fitness club.
• C. Mina simply needs to tell her immediate supervisor at SecureMoney about her new job.
• D. Because the job as a receptionist at a fitness club has nothing to do with the world of finance, Mina has done nothing inappropriate.

Which of the following entities would be required to register with the state as a broker-dealer under the guidelines of the Uniform Securities Act (USA)?

• A. an underwriter with no offices in the state that is helping a firm that is incorporated within the state with the sale of its new bond issue to insurance companies.
• B. None of the above entities would be required to register with the state as a broker-dealer under the guidelines of the Uniform Securities Act.
• C. an agent who executes the purchase and sale of stocks and bonds for his clientsD.
• D. a credit union that operates within the state and provides loans to its members.

Under the 2002 Uniform Securities Act, registration by coordination allows:

• A. both state-registered and out-of-state investment bankers to participate in the underwriting and registration of a new security issue.
• B. issuers of federal covered securities to submit only a notice filing with the Administrator of states in which the securities will be offered for sale.
• C. federal covered securities to be registered simultaneously with the SEC and with the states in which the securities will be offered for sale.
• D. securities that do not fall within the category of federal covered securities to be registered simultaneously with the SEC and with the states in which the securities will be offered for sale.

Which of the following funds can an agent indicate is "no load?"

• A. a fund with no front-end load that has 12b-1 fees equal to 0.10% of the average net assets of the fund and a rear-end load that varies depending on how long the investor has held the shares.
• B. a fund with no front-end or back-end load that has 12b-1 fees equal to 0.30% of the average net assets of the fund.
• C. Both A and C can be advertised as "no load" funds.
• D. a fund with no front-end or back-end load that has 12b-1 fees equal to 0.25% of the average net assets of the fund.

Joe Treader is the owner of a small, state-registered investment advisory firm that is on the verge of becoming insolvent. One of his clients who has become like a mother to him is aware of his financial difficulties and has offered to sell off some of the assets that he manages for her and loan him the money to get him through this period of economic uncertainty until he is able to get on his feet again.
Can Joe take her up on her offer?

• A. Yes. Based on the facts presented, it is an unsolicited offer and, as such, Joe can (and should) accept it.
• B. Yes, but only if Joe draws up a formal loan agreement with a fair interest rate, based on the going market rates, stated in the agreement as well as a firm date for principal repayment.
• C. No. As the client's investment adviser, he has a fiduciary relationship with the client. Entering a loan agreement with this client could lead to conflicts of interest.
• D. Both A and B are true.