Exercise
Answer YES or NO
1. _____ A BD has an office in State A and three non-institutional clients in State B. Does the firm need to be registered in State B?
2. _____ A BD has an office in State C, but its only client is a corporation located in state D. The corporation issued the securities being bought and sold. Does the firm need to be registered in State D?
3. _____ A BD has an office in State E and has three clients in State F. Those clients are a mutual fund, a savings institution, and a retail investor. Does the firm need to be registered in State F?
4. _____ On January 15, North Star Investment, a Canadian broker-dealer, reaches an agreement to effect trades for Jim Maple, who is vacationing in Florida at the time. Two days later, a North Star agent makes a transaction for Jim, who is still in Florida. Does North Star need to be registered in Florida?
5. _____Lira Financial, an Italian-based brokerage firm with no office in the United States, regularly trades securities wit