Series 66: Exercise

Exercise

Choose Fraudulent or Not Fraudulent

1. 1. _____ A broker-dealer fails to disclose facts about a disciplinary event that is not material to its effectiveness as a firm.
2. 2. _____ An investment adviser has a written agreement that allows it to pay cash to an independent solicitor for bringing clients to the firm.
3. 3. _____ An adviser purchases a security for his own account in advance of purchasing a large block of the same securities for a client. He makes this purchase because he expects the price of the security to get a boost from his client’s purchase.
4. 4. _____ An employee of a firm reports his securities holdings to the firm’s compliance office one week after first obtaining inside information.

Answers