Broker-dealer Small & Associates has received a complaint about one of its agents, Mr. Ari Gaunt. Small & Associates is required to

• A.keep the complaint in Mr. Gaunt's employee file as long as Mr. Gaunt remains employed with the firm.
• B.immediately forward the complaint to the Administrator of any state in which Mr. Gaunt is a registered agent.
• C.call the client who complained and inform him of the disciplinary action that will be taken against Mr.
  Gaunt.
• D.provide the client with a written response to the complaint.

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A broker-dealer is required to keep his records for how long?

• A.at least three years
• B.at least five years
• C.at least seven years
• D.broker-dealer is required to keep his records for as long as he is registered in the state.

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Assuming the security is not registered under the Uniform Securities Act, which of the following would not
be exempt from state registration?

• A.a variable annuity contract offered by an insurance company with offices in the state
• B.a stock that is listed on the American Stock Exchange
• C.a stock that is listed on the OTC Bulletin Board
• D.a put option on a stock that sells in the over-the-counter market

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Jeremy Sly considered himself somewhat of an inventor. The only problem was that his day job interfered
with his opportunity to exercise his creativity. He came up with a plan to get outside investors to support
his inventive activities. To this end, he produced and distributed a brochure advertising partnership
interests with a guaranteed return on investment of at least 15% after the first 12 months, based on what
he had allegedly generated from his other (non-existent) inventions. Given these facts, is Jeremy guilty of
any security violations under the Uniform Securities Act (USA)?

• A.No. The facts don't indicate whether any partnership interests were actually sold, and there can be no
  violation unless there is a sale.
• B.No. An interest in a partnership is not considered a security.
• C.No. It is not against the law to believe in oneself and promote one's ideas.
• D.Yes. Even an "offer" to sell securities must not contain any untruths.

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Mr. Bigwig, CEO of HiGrowth Corporation, meets with the president of BigFee Investment Bankers and arranges for BigFee to underwrite an Initial Public Offering (IPO) for the firm. When the IPO comes to market, GetErDone Broker-Dealers is part of the selling group, which handles the sale of the stock to the public.
In this scenario, which party is the broker?

• A.HiGrowth Corporation
• B.Mr. Bigwig
• C.BigFee Investment Bankers
• D.GetErDone Broker-Dealers

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