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ki77a [65]
3 years ago
11

Under NASAA Statements of Policy on Dishonest and Unethical Business Practices by Broker-Dealers and Agents, which of the follow

ing statements would be true when an Agent of a Broker-Dealer creates a summary sheet or sales piece which will accompany the prospectus on the sale of a new issue of common stock?
I. The Agent of the Broker-Dealer is not allowed to create summary sheets or a sales piece.
II. The Agent of the Broker-Dealer would be allowed to provide a potential customer with such a sales piece or summary if it does not omit any relevant information that the client would need to determine if they would like to buy the security.
III. The Agent of the Broker-Dealer would not be allowed to provide clients with summary sheets or a sales piece until the client has received and had an opportunity to read the prospectus.
IV. The Agent of the Broker-Dealer, when creating a summary or sales piece, is required to present a fair and balanced presentation of all material information from the prospectus.

A) I & III
B) II & IV
C) I & IV
D) II & III
Business
1 answer:
kap26 [50]3 years ago
5 0

Answer:

B) II & IV

II. The Agent of the Broker-Dealer would be allowed to provide a potential customer with such a sales piece or summary if it does not omit any relevant information that the client would need to determine if they would like to buy the security.

IV. The Agent of the Broker-Dealer, when creating a summary or sales piece, is required to present a fair and balanced presentation of all material information from the prospectus.

Explanation:

Under North American Securities Administrators Association (NASAA) rules, when an agent or a broker-dealer creates a summary sheet or sales piece, it must include a fair and balanced presentation of all the important and relevant information that their client may need to be able to make a decision as to whether or not they want to purchase the security. Obviously the client trusts his/her agent, but the client must be given all the information necessary for him/her to decide whether the agent's advice should be followed or not.

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Answer:

Tax Savings = 200

Explanation:

If Ward and June carry the bond, tax would be:

⇒ Interests * tax rate

⇒ 1000 * 32% = 320

They gift bond to their son, Wally, whose tax would be:

⇒ Interests * tax rate

⇒ 1000 * 12% = 120

The tax savings related to the transfer of Bond is:

⇒ 320 - 120 = 200

5 0
3 years ago
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Which of the following is not commonly regarded as being part of a firm’s credit policy? a. Credit period b. Collection policy c
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3 years ago
Hernandez Builders has a gross payroll for January amounting to $500,000. The following amounts have been withheld: Income taxes
erik [133]

Answer:

The amount of net pay recorded by Hernandez is $380,650

Explanation:

Gross Pay                      $500,000

Income Tax                      $63,000

Social security              $31,000

Medicare                      $7,250

Charitable contribution      $5,000

Union Dues                      $10,000

Unemployement Tax      $3,100

Net Pay                              $380,650

Therefore, The amount of net pay recorded by Hernandez is $380,650

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3 years ago
Variable costs as a percentage of sales for Lemon Inc. are 71%, current sales are $551,000, and fixed costs are $207,000. How mu
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Answer: a.$10,904 increase

Explanation:

Operating income before sales increase:

= Sales - Variable costs - Fixed costs

= 551,000 - (71% * 551,000) - 207,000

= -$47,210

Operating income after sales increase:

Sales increases to:

= 551,000 + 37,600

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= -$36,306

Difference:

= -47,210 - (-36,306)

= Increase of $10,904

7 0
3 years ago
Presented below is information related to Windsor Company.
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Answer:

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Oct 1    Cash                          $16,800

                 Common Stock                      $16,800

Oct 2    No journal entry             -                  -

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                  Accounts Payable                  $2,500

Oct 6.   Accounts Receivable  $3, 400

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Oct 27   Accounts Payable       $1,100

                    Cash                                      $1,100

Oct 30   Salaries Expense       $2,650

                    Cash                                      $2,650

7 0
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