Basic Wisdom is an education service that provides videos, blogs, and resources to students taking FINRA or NASAA exams (Series 4, 6, 7, 9, 10, 63, 65, 66). We introduce free content weekly and aim to help you easily pass these tough exams.
Awesome! I thought you may be able to help with the following.........The Federally Covered RIA Schwab is in NY state, The IAR David works for RIA Schwab in NY inside Schwab's building (office). Should David register in NY state as is or he should have his separate office to register in NY? Thank you in advance!
@@zmack1830 David should register in NY as an IAR of Schwab. Legally speaking, IARs of federal covered advisers only register in the state they maintain an office in. I'm not sure what you mean about him registering as is or have his separate office register. If David is not running a business separate from Schwab, then there is no need to register his office as a separate entity. Hope this helps!
@@Hshjshshjsj72727 you can definitely find bonds with yields well exceeding inflation (e.g., corporate junk bonds). Of course, these bonds will come with more risk.
@@katepolicani334 thanks so much! My daughter is 2 now and we live in a bigger house now, so no need to record in the nursery anymore. Still loved this backdrop, though!
Great explication! Does the ten years. history apply accross the board, ie for the. IA and IAR? IF yes does that mean anything that happened before ren years before registration does not matteer !!
@@zmack1830 conceptually understanding the concept is always best, but the T-chart helps account for the numbers. Preferably, a candidate should know the concept and have some system in place for the numbers (doesn't necessarily need to be a T-chart). Doing the math in your head also can lead to error.
Thank you for these videos! They're wonderful. And the fact that you still reply to questions on here after a year is an absolute class-act move. One thing though, I think the 15 state rule is a requirement rather than an eligibility under SEC Rule 203A-2.. Am I mistaken? ssb.texas.gov/securities-professionals/dealer-adviser-registration/getting-started-registered-investment-adviser-3
I keep falling for the answer that says Investment Management Company in thinking that is an investment company which would be required to register. How might I find a way to tell the difference between the two because it's getting me everytime!
Management companies (open and closed-end) are types of investment companies. Not sure if you're referring to these. Can you share a bit more so I can try to help?
@@chasing_chika I see what you mean. The difference is subtle, but it's an investment company vs. an adviser managing an investment company. GHI is an investment company and would be registered as an investment company (not an adviser). Here's a real world example - let's talk about the Fidelity Large Cap Stock Fund. The fund itself is a registered investment company (not an adviser). If my company (Basic Wisdom) was hired to manage the Fidelity Large Cap Stock Fund, my company would be required to register as a federal covered adviser. The key is knowing what we're focusing on. Firms that manage/advise investment companies must register as federal covered advisers. The investment companies (mutual funds, closed-end funds, UITs) must register and investment companies. I hope that helps!
The video is enlightening while at the same time bewildering!! If a person just passed the series 65 exam and wants to register as a completely new Investment Advisor (also IAR) as a sole proprietor, almost all of the form fields like AUM, history and others will be rendered irrelevant . Won't they be? So, how does the sole proprietor fill the form in this case?? Many thanks for the help in advance !!
Hello Brandon, I found your teaching style very helpful,and used your videos for the S7. Do you offer training videos and easy to understand text material for the series 24? The STC is very dense & not presented well Thank you!
Thank you for watching my videos! Unfortunately, I do not currently have any Series 24 content. However, I plan on offering some videos in the future. Good luck with your studies!
So should I avoid brokerage firm when acts on principal capacity? Because they want to mark down or mark up prices, that could be a loss to us, and turn to agency capacity instead, I'm new in these terms. Thanks 1
Brokerage firms are generally required to execute trades on a "best execution" basis, and price is one of the biggest factors with this requirement. Regardless of the trading capacity, you should obtain a price that reflects the current market. It would be illegal for a firm to execute a trade at an unfavorable price just to make more money.
@@BasicWisdom thanks, 1) Is it normal for my fractional shares held by the broker a custodian through a sub custodian or nominee when the broker acts on principal capacity? Any associated risks? 2) Fractional transactions entered into by the client with Moo Moo Singapore (my online broker) could result in a loss to the client and a gain to the Moo Moo Singapore. How would interpret this term? Any associated risks? Thanks in advance..
