Question

Under the Uniform Securities Act, an investment adviser may share in the profits of a client's account:

Answer 1

Answer:

D. under no circumstances

Explanation:

An investment adviser uses his investment knowledge to guide his client with respect to investing in stocks and other securities so as to maximize client's gain.

In return for his services, an investment adviser charges a certain fee from the clients.

As per the Uniform Securities Act, an investment adviser is prohibited from sharing the profits of the client which could be in the form of any dividend/interest receipts or capital appreciation.

Thus, under no circumstances, an investment adviser is permitted to share profits of the client.

Answer 2

Answer:

option d                

Explanation:

The Uniform Securities Act refers to the model law enacted as the starting point for securities legislation at both the state and local level. The Uniform Securities Act seeks to deal with State-level securities fraud and to support the Securities and Exchange Commission (SEC) with compliance and regulation.

Securities laws focus on preventing illegal selling of securities to investors, whether at the state or federal level. Three key components derive from regulatory efforts. Public offering issues require a license. Anyone dealing with securities, in particular investment advisers, investment dealers, and their associates and representatives, should also be licenced.