Administration & LiabilityQuestion 94 of 100
An Administrator has jurisdiction over an offer or sale when:
a.The offer originated in the state, or was directed into and received in the state, or the acceptance of the offer took place in the state
b.Only when both the buyer and the seller reside in the state
c.Only when the security involved is registered in the state
d.Only when the transaction was profitable for the seller
Explanation
Jurisdiction attaches where an offer originates, where it is directed and received, and where an offer to buy or sell is accepted, which is why a single transaction can fall under two states' laws. Residency of both parties is not required. Neither registration of the security nor the seller's profit has any bearing on jurisdiction, and the antifraud provisions reach offers even where no sale occurs.
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Related questions on this topic
- An investor buys a security in a sale that violated the registration provisions of the act. In a civil suit, the investor may generally recover:
- A broker-dealer discovers it sold securities in violation of the act and sends the purchaser a written offer of rescission. Which statement is correct?
- A registrant disagrees with a final order entered by the Administrator. The registrant may:
- Regarding records of registered broker-dealers and investment advisers, the Administrator:
- Which statement about the Administrator's rulemaking authority is correct?
- Which of the following may the Administrator NOT do?
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