Series 63 practice questioneasyAgent Definition — Exclusions
During a registration workshop, the instructor adds this setup first. Read it as a Uniform Securities Act issue rather than a federal-law issue. Under the Uniform Securities Act, which of the following individuals is NOT considered an agent?
- AA registered representative who solicits new brokerage accounts
- BAn individual who represents a broker-dealer in selling securities
- CA trainee who cold-calls potential customers to solicit securities purchases
- DAn individual who represents an issuer in an exempt transaction with no special compensation✓ Correct answer
Explanation
Why D — An individual who represents an issuer in an exempt transaction with no special compensation
Under USA Section 401(b), an individual who represents an issuer in a transaction with existing employees, partners, or directors without receiving special transaction-based compensation is generally not considered an agent. Cold-callers, registered representatives, and others who actively solicit securities transactions are considered agents. This version tests the same concept with a different fact pattern wrapper.
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