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NEW QUESTION: 1

A. Option A
B. Option D
C. Option B
D. Option C
Answer: B

NEW QUESTION: 2
S. White and Associates is an investment adviser registered in the state of Kentucky and, as such, is
meeting Kentucky's minimum net capital requirement for investment advisers. The firm recently registered
with the state of Virginia and has opened an office there. Virginia has a significantly higher net capital
requirement for its investment advisers. Which of the following statements is true?
A. According to the Investment Advisers Act of 1940, S. White will have to maintain a minimum net capital
equal to the average of the net capital requirements of the two states.
B. According to the Investment Advisers Act of 1940, S. White needs only to meet the net capital
requirement of Kentucky.
C. According to the Securities Exchange Act of 1934, S. White needs to meet at least the minimum net
capital requirement specified by that Act since it is now operating in multiple states.
D. According to the Uniform Securities Act, S. White will have to meet Virginia's higher requirement.
Answer: B
Explanation:
Since S. White is already registered in the state of Kentucky and meeting the net capital
requirement of that state, the Investment Advisers Act of 1940 stipulates that Virginia cannot require a
higher minimum net capital. The Act states that if an investment adviser is registered in one state and is
meeting its net capital requirement, a second state cannot impose a higher net capital requirement on the
investment adviser.

NEW QUESTION: 3

A. Option A
B. Option B
C. Option D
D. Option C
Answer: B