"T + 3" refers to

• A.the form, also known as a "trade ticket," that is filled out when an order is entered into the market.
• B.the form that is filled out and sent to the client confirming that the trade has been executed.
• C.the fact that the settlement date will be three business days after the trade date, which is the "regular
  way settlement" for transactions involving stocks and corporate and municipal bonds.
• D.a procedure to minimize the potential for money laundering.

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You are employed as an agent with CanDo Broker-Dealers. Your brother is software engineer with VideoMagic. When you were talking to him on the phone the other day, he told you that he overheard a conversation by some of the firm's executives that indicated that VideoMagic was about to take over another software company.
Which of the following would violate insider trading rules?
I. The next day, you get an unsolicited call from a client requesting that you sell his shares in Video Magic, and you execute the trade.
II. You buy stock in Video Magic's target firm in anticipation that its stock price will rise when the information becomes public.
III. You recommend the stock of Video Magic's target firm to investors based on the fact that, on average, the stock price of target firms increases.

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

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A broker-dealer cannot legally be

• A.a partnership.
• B.an individual.
• C.a sole-proprietorship.
• D.A broker-dealer can be any of the above.

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A variable annuity is:

• A.not a security and, therefore, does not have to be registered with the state.
• B.not a security, but is still required to be registered with the state before it can be offered for sale.
• C.a security and, therefore, has to be registered with the state before it can be offered for sale.
• D.a security, but is exempt from state registration.

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In which of the following scenarios will the investment adviser be subject to criminal fraud charges?

• A.An adviser owns the stock of TweedleDee Corporation and has issued a report recommending the stock as a "buy" without disclosing the fact that it owns the stock.
• B.An adviser owns the stock of TweedleDee Corporation and has issued a report recommending the stock as a "buy," disclosing the fact that it owns the stock
• C.An adviser sells its shares of TweedleDee Corporation after issuing a report recommending the stock as a "buy."
• D.all of the above. It is considered criminal fraud for an investment adviser to make any recommendations on a security in which it has or plans to have a position.

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