on No: 9
Rich Writewell wants to begin publishing an independent weekly financial newsletter that will provide investment recommendations as well as other financial news items to the general public. Rich hopes that his newsletter will achieve nationwide circulation within a few months.
Which of the following statements is true?

• A. Rich will not have to register as an investment adviser since he is publishing a legitimate financial newsletter for distribution to the general public.
• B. Rich will have to register as an investment adviser since his publication will include investment recommendations.
• C. Rich will have to register as an investment adviser only if he sells this newsletter to the public. If the publication is to be distributed free of charge, he will not have to register.
• D. Rich may be exempt from registering as an investment adviser if he is a lawyer, accountant, engineer, or teacher. Otherwise, he will have to register.

Moe is a registered investment adviser doing business under the name of MoeMoney Investment Advisers, LLC. Larry, Curly, and Mary all hold positions with the firm. Larry is on the board of directors; Mary is a sales representative for the firm; and Curly is an administrative assistant, who performs clerical duties.
Given that Moe is already a registered investment adviser, which of the other three are automatically registered as investment adviser representatives?

• A. Mary and Curly only
• B. Larry, Mary and Curly
• C. Larry only
• D. Larry and Mary only

Under the NASAA Model Rules, which of the following must an investment adviser provide its clients with at least once a year?

• A. the total number of agency cross transactions completed for the client during the period
• B. the number of any complaints that each of its investment adviser representatives has received during the period
• C. the total amount of commissions or other compensation that the investment adviser received or expects to receive in connection with agency cross transactions performed for the client during the period
• D. both A and B

Newbie Corporation is considering the possibility of an interstate initial public offering (IPO) of its stock. In the initial meetings with BigFee Investment Bankers, Newbie has learned that the underwriting spread will be
15%. Although the actual offering price won't be set until Newbie's registration statement is approved by the SEC, BigFee has indicated that the offer price will probably be between $3 and $4 a share and that the stock will initially be listed on the OTC Bulletin Board.
What methods for state registration does Newbie have available?
I. registration by coordination
II. registration by notification
III. registration by qualification

• A. Method II only
• B. Newbie may elect to register by any one of the above methods although registration by qualification would be the most burdensome choice.
• C. Methods I and III only
• D. Method I only

You are a registered agent with a large brokerage firm. Your client is a very busy woman. She is interested in purchasing 500 shares of Google, but she thinks this morning's opening price is too high. She's going to be in meetings and then on a transatlantic flight. She wants the purchase to take place today because she believes Google's price is just going to keep rising with only the occasional daily ups and downs. She wants you to use your discretion and try to get her the best price for the stock in today's trading session.
Which of the following statements are true?

• A. You tell her that you can do this for her, but only if you execute it as a margin transaction.
• B. You tell her you can enter it for her as a "market not held" order.
• C. You have to tell her that you can't do this without a signed discretionary authorization from her, and there's none on file.
• D. You tell her to have her secretary type up a discretionary authorization for her to sign and drop in the mail before she boards the plane. As long as the written authorization is in the mail, you can place the order.