Laws & RegulationsQuestion 97 of 110

Under the Uniform Securities Act, which person is excluded from the definition of a 'broker-dealer' in a given state?

a.A firm that solicits retail clients throughout the state
b.A firm with an office in the state dealing with the public
c.A firm with no place of business in the state that deals only with existing clients temporarily present there
d.A firm that advertises to state residents

Explanation

A firm with no place of business in a state may be excluded from that state's broker-dealer definition if it deals only with certain exempt clients or existing clients who are merely temporarily present. Establishing an office or soliciting the general public in the state triggers registration. These exclusions limit unnecessary duplicate registration.

Law Reference: Uniform Securities Act

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