Welcome to State Enforcement and Antifraud Authority, the unit that defines how far a state's securities law actually reaches, and the one provision that no exemption can escape.
Exam Weight: Part of 9% (5 questions total for Chapter 5: Regulations of Securities and Issuers)
What You'll Learn
In this unit, you'll cover:
- Overview of the Uniform Securities Act: What the USA is, why it is called a blue-sky law, and the version the exam tests
- Jurisdictional Scope: When an offer is made in a state, why two states can reach one transaction, and the broader standard for advisers
- Antifraud Provisions: The rule that reaches every offer, sale, and purchase of any security, with no exemptions at all
Why This Matters
Everything else in this chapter asks whether a security must be registered. This unit asks a prior question: does this state's law reach the transaction at all?
The antifraud provisions sit here for a reason. They are not one prohibited practice among many; they apply to every security and every transaction, including exempt ones, and they are the backstop behind the whole Act.
Let's start with Overview of the Uniform Securities Act.