A "market not held" order is

• A. an order to sell securities that the investor owns if the stock decreases by a certain amount from the
  current price.
• B. an order to buy or sell a stock at a specified price, which differs from the current market price.
• C. a prohibited activity in which an agent engages in the purchase or sale of securities that are not offered
  by his broker-dealer.
• D. an order in which the client tells the broker to use his own discretion in timing a purchase or sale in an
  attempt to get a better price.

The C&S Railroad is in the process of issuing new bonds. Before these bonds can be offered for sale,

• A. they must be registered in every state in which the bonds will be sold to investors.
• B. they must be registered with the SEC and in each state through which the railroad passes.
• C. None of the above statements is true.
• D. they must be registered with the SEC since railroads are involved in interstate commerce.

Which of the following is not in itself a reason for the Administrator to deny, suspend, or revoke the license
of a person?

• A. The person has been convicted of check kiting within the past ten years.
• B. The applicant has never before worked in the securities industry although he has received the requisite
  training.
• C. The person is a broker-dealer whose agents have repeatedly been accused of churning and burning,
  according to written client complaints.
• D. Some of the information supplied on the registration application was found to be false.

A-2-Z Associates advertises itself as a full service brokerage firm that will buy and sell securities for its
clients, as well as provide investment advice to them. Its brochure provides a variety of plans to which a
client can subscribe. The basic plan is the cheapest and allows the client a maximum number of trades
per month for a specified fee. Another, slightly more expensive, plan provides the client with the same
maximum number of trades per month, but the client also receives a personalized quarterly review of his
portfolio along with advice for restructuring his portfolio based on such factors as current market
conditions and specific industry or company information. The most expensive plan is one in which the
client is assigned to an individual portfolio manager, who will take total responsibility for the asset
allocation of the client's portfolio and will provide the client with monthly reports. Based on the services
A-2-Z provides, it must register with the state as:

• A. both a broker-dealer and an investment adviser.
• B. a broker-dealer.
• C. an investment adviser representative.
• D. an investment adviser.