RegistrationQuestion 31 of 100
Which statement about issuers under the Uniform Securities Act is correct?
a.An issuer is any person who issues or proposes to issue a security, and an issuer selling only its own securities is not a broker-dealer
b.An issuer must always register as a broker-dealer before selling its own securities
c.Only corporations can be issuers
d.An issuer is automatically an agent of the individuals who sell its shares
Explanation
The definition covers any person who issues or proposes to issue a security, which includes governments, partnerships, and trusts as well as corporations. Because a broker-dealer effects transactions for the accounts of others, an entity selling only its own securities falls outside that definition. The relationship in the last choice is backwards: individuals who sell for the issuer may be its agents.
Law Reference: Uniform Securities ActPractice all 100 questions free — no signup required.
Related questions on this topic
- An investment adviser opens a small office in State Q and, during its first year, takes on only two clients who reside in State Q. Regarding State Q registration, the adviser:
- For purposes of the institutional exception from the broker-dealer definition, which of the following clients would NOT preserve the exception?
- An agent is registered only in State A. Her broker-dealer is registered in both State A and State B. She begins cold-calling residents of State B from her desk in State A. Which statement is correct?
- An agent's employing broker-dealer voluntarily withdraws its state registration. Absent any other affiliation, the agent's registration in that state:
- A registered broker-dealer discovers that information in its original state application has become materially inaccurate. The firm should:
- An investment advisory firm has its only office in State D, where it is registered. It also serves three individual clients in State E and four individual clients in State F, with no office in either. Which statement is correct?
Last reviewed: · editorial process
PrepPass Editorial Team · Verified against NASAA Series 63 — Uniform Securities Agent State Law Exam · How we review