Sam Shyster had his day in court-and lost. His license to do business as an investment adviser in the
state has been revoked. What legitimate options does Sam have available to him now?

• A.Sam can move to another state and apply for registration as an investment adviser there.
• B.Sam has 45 days in which to file an appeal with the attorney general.
• C.Sam can register with the SEC as an investment adviser, which will exempt him from state registration
  requirements.
• D.Sam has 60 days to file an appeal of the decision in a court of law.

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Ken Con is an agent with Blue Sky Broker-Dealers. He gets up early each morning so that he can study
any late-breaking news that may affect the markets and figure out ways to incorporate this news into
conversations with select clients in order to pressure them to restructure their portfolios by selling
holdings they have in one particular industry to invest the money in another particular industry. Ken has
been very successful with this strategy and executes more trades for his clients than any other agent with
the firm, but is he in danger of losing his license?

• A.Yes. Ken is engaging in churning, a prohibited practice and can have his license revoked or
  suspended.
• B.It depends. If his clients have lost money, Ken may lose his license; but if a review indicates that his
  clients' accounts earn profits, then his license is safe.
• C.Yes. Ken is guilty of the prohibited practice of "tailgating."
• D.No. Ken is just a successful sales person who is working harder than the other agents in the firm.

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Investment Adviser Foo Lish, LLC has begun serving as a custodian of its clients' assets. Foo Lish, LLC
must now
I. file a new U-5 form with the Administrator.
II. meet higher net capital requirements than before.
III. file an updated Form ADV with the Administrator.
IV. pay a CPA to do an annual unannounced audit of the firm.

• A.I, II, III, and IV
• B.II, III, and IV only
• C.II and III only
• D.I and II only

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Penny Swyne, an agent employed by Bear Broker-Dealers, has received a written complaint via e-mail
from Mr. Wolf regarding her performance as his agent. What are Ms. Swyne's legitimate options?

• A.Ms. Swyne can call Mr. Wolf and offer to meet him for a romantic dinner and try to convince him to
  revoke the complaint.
• B.As illegal as it may sound, since the complaint was via e-mail, Ms. Swyne can hit the delete button and
  make it all go away.
• C.Ms. Swyne must forward the complaint to the state Administrator.
• D.Ms. Swyne must provide Bear Broker-Dealers with a copy of the complaint.

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Which of the following is not considered to be a security, as defined by the Uniform Securities Act (USA)?

• A.a debenture
• B.a certificate of deposit (CD)
• C.a put option
• D.an annuity contract wherein an insurance company promises to pay a fixed sum, either in a lump
  amount or through periodic payments.

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