FINRA Uniform Securities Agent State Law Examination Sample Questions:

1. Which of the following is not a prohibited practice for a broker-dealer?

A) requiring that a client who is engaged in margin transactions leave the securities with the broker-dealer
in "street name"
B) executing a trade for an account holder based on instructions from the account holder's spouse
C) waiting 36 hours before mailing a check after receiving a request for a cash withdrawal from a client if
the client has that much cash available in his account
D) recommending a security to a new client without first ascertaining that client's level of risk tolerance

2. Which of the following entities must sign a "consent to service of process," thereby allowing the
Administrator to receive legal documents that are meant to be served to the entity in place of that entity?
I. agents
II. investment advisers
III. investment adviser representatives
IV. broker-dealers

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

3. In order to maintain its registration with a state, a broker-dealer may be required to
I. take a written or oral exam.
II. pay an annual filing fee.
III. maintain a minimum net capital.
IV. file all advertising material with the Administrator.

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

4. Rich Writewell wants to begin publishing an independent weekly financial newsletter that will provide
investment recommendations as well as other financial news items to the general public. Rich hopes that
his newsletter will achieve nationwide circulation within a few months. Which of the following statements
is true?

A) Rich will have to register as an investment adviser since his publication will include investment
recommendations
B) Rich may be exempt from registering as an investment adviser if he is a lawyer,accountant, engineer,
or teacher. Otherwise, he will have to register.
C) Rich will have to register as an investment adviser only if he sells this newsletter to the public.If the
publication is to be distributed free of charge, he will not have to register.
D) Rich will not have to register as an investment adviser since he is publishing a legitimate financial
newsletter for distribution to the general public.

5. Under the Uniform Securities Act, which of the following does not need to be included when filing to
register a security issue with the state?

A) All of the above documents must be included when filing to register a security with the state.
B) copies of the underwriter agreements
C) a copy of any indenture applying to the security being registered
D) a copy of the firm's articles of incorporation and bylaws, or the equivalent

Solutions: