Series 63 practice questionmediumAgent Registration — Scenario
Lisa is registered as an agent in State A through her broker-dealer. She attends a conference in State B and, during a networking event, recommends a specific stock to an attendee who lives in State B. Lisa is:
- ANot in violation because she was at a professional conference
- BNot in violation because she did not complete a sale
- CPotentially in violation because she attempted to effect a transaction in a state where she may not be registered✓ Correct answer
- DIn violation only if the attendee actually purchases the stock
Explanation
Why C — Potentially in violation because she attempted to effect a transaction in a state where she may not be registered
Under USA Section 201, an agent must be registered in each state where she effects or attempts to effect securities transactions. Making a specific recommendation to a resident of State B constitutes an attempt to effect a transaction there. Lisa may be in violation if she is not registered in State B, regardless of whether a sale is ultimately completed.
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