Question: 1
The Uniform Securities Act (USA) is
A. a body of legal policies governing the acquire and sale of securities within a single state.
B. a bunch of regulations for extraordinary human being states to conform with when formulating their personal securities’ legal policies.
C. a bunch of legal policies requiring state-issued securities, equivalent to municipal bonds, to be registered with.
D. federal laws that calls for all states to adopt an analogous registration necessities for all.
Answer: B
Explanation:
The Uniform Securities Act (USA) adds a mannequin for states to conform with when formulating their personal securities legal policies. It doesn't, itself, incorporate any legal policies.
Question: 2
Once you've got surpassed the Series 63 examination, which entity ought to always then approve your application to sell securities?
A. FINRA
B. NASAA
C. SEC
D. the state administrator
Answer: D
Explanation:
Once you've got surpassed the Series 63 exam, it's the state administrator who can approve or deny your registration. NASAA developed the Uniform Securities Agent State Law Examination and FINRA administers it. The SEC is admittedly now no longer a birthday get together to the state registration manner.
Question: 3
Which of the subsequent securities would very likely now no longer necessarily be exempt from state registration?
A. a inventory indexed at the Tokyo Stock Exchange
B. a bond guaranteed by the Canadian government
C. a bond issued by an opportunity state’s employees’ credits union
D. a inventory indexed as a NASDAQ National Market Issue.
Answer: A
Explanation:
Stocks indexed at the Tokyo Stock Exchange would very likely now no longer necessarily be exempt from state registration. Stocks which are registered with the SEC, equivalent to NASDAQ National Market Issue shares, securities issued or guaranteed by the Canadian government, and securities issued or guaranteed by banks or credits unions are all exempt.
Question: 4
Moe is a registered investment adviser doing business beneath the decide out of MoeMoney Investment Advisers, LLC. Larry, Curly, and Mary all carry positions with the agency. Larry is at the board of directors; Mary is a gross sales consultant for the agency; and Curly is an administrative assistant, who performs clerical tasks.
Given that Moe is already a registered investment adviser, which of the diversified three are automatically registered as investment adviser representatives?
A. Larry solely
B. Larry and Mary solely
C. Larry, Mary and Curly
D. Mary and Curly solely
Answer: A
Explanation:
As a director of the agency, Larry would very likely automatically be registered as an investment adviser consultant of MoeMoney Investment Advisers. Although directors and officers of the agency are automatically registered as investment adviser representatives, Mary, as a gross sales consultant, would very likely ought to apply for her personal registration. Curly doesn't should be registered since he performs solely clerical tasks.
Question: 5
Jack is employed by NewCorp, which is undertaking an initial public presenting (IPO). Jack will ought to check in as a gross sales consultant if he:
A. engages in transactions with the underwriters of the IPO for the perform of taking the agency public.
B. represents NewCorp in any transactions with monetary associations.
C. participates interior the advertising of the up up to now inventory to extraordinary human being investors.
D. Jack will ought to check in as a gross sales consultant if he performs anybody of the above pursuits.
Answer: C
Explanation:
Jack will ought to check in as a gross sales consultant if he participates interior the sale of up up to now inventory to extraordinary human being investors. Those who deal directly with the public ought to check in as gross sales representatives beneath the Uniform Securities Act. If Jack limits his involvement to transactions with the underwriters or monetary associations, he needn't test in.
Question: 6
Blue Sky Laws are designed to:
A. give safeguard to investors from fraud in their securities marketplace transactions.
B. give safeguard to brokers, broker-dealers, and investment advisers and their representatives from spurious allegations of fraudulent exercising.
C. decorate the tourism business within a state.
D. desire investment in vendors that interact in environmentally friendly practices.
Answer: A
Explanation:
The primary perform of Blue Sky Laws is to provide safeguard to extraordinary human being investors from fraud in their securities marketplace transactions. Requiring the registration of up up to now reliable practices motives and the registration of the ones persons who propose extraordinary human being investors moreover to the ones worried interior the acquire and sale of securities to the public are in basic terms real one of the constraints designed to do this. There are now no longer any provisions designed to provide safeguard to brokers, broker-dealers, or investment advisers and their representatives in any regard.
Question: 7
An extraordinary human being who represents a broker-supplier interior the obtaining and advertising of securities is named a(n):
A. underwriter
B. company
C. agent
D. administrator
Answer: C
Explanation:
An extraordinary human being who represents a broker-supplier in obtaining and advertising securities is named an agent or a registered consultant. An agent might very likely just additionally additionally paintings for an company, which refers back to the entity that is advertising securities to elevate dollars for itself. An underwriter is the entity that aids the company in bringing the up up to now securities to marketplace. Administrator is the title many states use to talk to the accountable in charge of enforcing the state’s securities restrictions.
Question: 8
Which of the subsequent statements highest major explains the difference among an agent and a broker-supplier?
A. An agent is a non-public who represents a broker-supplier or an company and buys and sells securities he doesn't personal in go back for a fee at the transactions he executes. A broker-supplier might very likely just additionally additionally buy and sell securities for his personal portfolio, in which case the broker-supplier enjoys any value appreciation on the ones securities.
B. A broker-supplier should be authorized interior the state in which he conducts business, but there are now no longer any separate licensing necessities for brokers.
C. Agents are engaged fully interior the acquire and sale of shares whereas broker-dealers also buy and sell bonds and optimistic contracts.
D. Agents conduct their business fully interior the secondary marketplace, whilst broker-dealers also perform interior the volume one marketplace.
Answer: A
Explanation:
The primary difference among an agent and a broker-supplier is that an agent represents either a broker-supplier or an company and buys and sells securities he doesn’t personal, receiving a fee for the trades he executes. A broker-supplier, when functioning as a supplier, is obtaining and advertising for his personal portfolio, thereby making the so much of any value appreciation interior the equipment in his portfolio. Both brokers and broker-dealers ought to always meet state licensing necessities; equally interact interior the acquire and sale of shares, bonds, and optimistic contracts; and equally perform in equally the volume one and secondary markets.
Question: 9
on No: 9
Rich Writewell wants to start up publishing an unbiased weekly monetary newsletter which could give investment concepts moreover to diversified monetary files objects to practically all men and females. Rich hopes that his newsletter will obtain nationwide circulation within plenty of months.
Which of the subsequent statements is suited?
A. Rich will ought to check in as an investment adviser since his publication will incorporate investment concepts.
B. Rich will ought to check in as an investment adviser furnished that he sells this text to the public. If the publication is to be distributed for freed from charge, he'll now no longer ought to check in.
C. Rich is likewise exempt from registering as an investment adviser if he's a attorney, accountant, engineer, or trainer. Otherwise, he'll ought to check in.
D. Rich will now no longer ought to check in as an investment adviser since he's publishing a sound monetary newsletter for distribution to practically all men and females.
Answer: D
Explanation:
Rich will now no longer ought to check in as an investment adviser since he's publishing a sound monetary newsletter which could be distributed to practically all men and females. The definition of the time period 'investment adviser' excludes publishers of bona fide business or monetary procedures which are revealed constantly and have overall circulation.
Question: 10
Erin is a registered agent who works for SecureMoney Brokers-dealers. One of her consumers, Mrs. McTurk, is a as of late-widowed girl who relies on Erin for counsel about her investment portfolio. Mrs. McTurk reminds Erin of her personal grandmother, and she is satisfied to provide directions within the sphere of her personal competencies.
Based on these facts, which of the subsequent statements is suited?
A. SecureMoney Broker-dealers ought to always test in as an investment adviser since real one of its employees is providing investment counsel.
B. Erin ought to always test in as an investment adviser since she is providing investment counsel.
C. SecureMoney Broker-dealers ought to always test in as an investment adviser since real one of its employees is providing investment counsel, and Erin ought to always test in as an investment adviser consultant as the agency’s worker.
D. Neither SecureMoney Broker-dealers nor Erin ought to always test in as an investment adviser consistent with the facts furnished.
Answer: D
Explanation:
Neither SecureMoney Broker-dealers nor Erin ought to always test in as an investment adviser consistent with the facts furnished since neither the broker-supplier nor Erin is receiving any compensation for the counsel Erin is giving Mrs. McTurk. In this instance, the counsel furnished is thought about incidental to the broker-supplier business.
Question: 11
Which of the subsequent would very likely now no longer fall beneath the classification of 'institutional investor'?
A. Prudential Insurance
B. Chase Bank
C. Neuring Investment Advisers
D. Franklin Templeton Mutual Funds
Answer: C
Explanation:
Nuering Investment Advisers would very likely now no longer fall beneath the classification of 'institutional investor.' Institutional investors are explained as banks, preservation vendors, mutual funds, some pension plans, and broker-dealers registered beneath the Securities Exchange Act of 1934. Investment advisers are now no longer component of this group.
Question: 12
Which of the subsequent is an instance of a non-company transaction?
A. IBM sells a ultra-smooth issue of bonds to an preservation agency.
B. Jose purchases a 10-year bond issued by Progress Energy when it has 6 years ultimate to maturity.
C. Google bargains extra shares of its inventory for sale to the public.
D. NewCorp, which has been a privately held agency, is undertaking an initial public presenting (IPO) of its inventory.
Answer: B
Explanation:
When Jose buys a 10-year bond that has 6 years ultimate to maturity, that is a non-company transaction since he's obtaining it interior the secondary marketplace from an opportunity investor, and Progress Energy doesn't take pleasure interior the transaction. If a agency receives dollars when its securities are offered, it is thought about an company transaction; in any diversified case that is a non-company transaction. When Progress Energy in the origin issued the bond, it had ten years to maturity, and Progress Energy obtained the proceeds from the bond issue; that was an company transaction. When Jose buys the bond, an opportunity investor is receiving the proceeds. When IBM sells new bonds, no subject if it is to practically all men and females or to an institutional investor, IBM receives the proceeds from the transaction, so it is an company transaction. Similarly, when a agency that is already publicly held, like Google, sells extra shares, the agency receives dollars from the sale, in basic terms as when a agency that goes public for the 1st time, like NewCorp, receives the proceeds generated by approach of the IPO. Those are examples of company transactions.
Question: thirteen
Which of the subsequent is admittedly now no longer thought about to be a reliable practices, as explained by the Uniform Securities Act (USA)?
A. a debenture
B. a certificate of deposit (CD)
C. a placed optimistic
D. an annuity contract wherein an preservation agency can give to pay a troublesome and fast sum, either in a lump volume or by approach of periodic repayments.
Answer: D
Explanation:
The Uniform Securities Act excludes annuity contracts wherein an preservation agency can give either to pay a troublesome and fast sum, either in a lump volume or by approach of periodic repayments, from its definition of a reliable practices. Debentures, CDs, and optimistic contracts are all classified as securities beneath the us.
Question: 14
Which of the subsequent eventualities would very likely now no longer be thought about a 'sale,' as explained by the Uniform Securities Act (USA)?
I. Yoshito owned shares of Minnow Corporation and obtained shares of Whale Corporation from Whale when it merged with Minnow.
II. Olivia’s uncle, an agent with SecureMoney Brokers, offered Olivia ten call alternatives at the inventory of Microsoft.
III. Hans purchased a bond of Indebted Corporation that had removable warrants and in result offered the warrants.
IV. Tom pledged some shares of inventory he owned individually to comfy a business loan for his agency.
A. Neither I nor II would very likely be thought about gross sales.
B. Neither II nor III would very likely be thought about gross sales.
C. Neither I nor IV would very likely be thought about gross sales.
D. Neither III nor IV would very likely be thought about gross sales.
Answer: C
Explanation:
Explanation: Neither Scenario I nor Scenario IV describes gross sales as explained by the us. When an investor receives securities from Company X when Company X merges with a agency in which the investor owns inventory, Company X is admittedly now no longer thought about to have offered the ones securities to the investor. Likewise, when a guy uses securities he owns as collateral for a loan, the us doesn't assume this to be a sale of the securities.
Question: 15
Jeremy Sly thought about himself particularly of an inventor. The solely undertaking was that his day job interfered with his threat to exercising his creativity. He obtained here up with a plan to get backyard investors to assist his inventive pursuits. To this conclusion, he produced and distributed a brochure commercials partnership interests with a guaranteed go back on investment of no less than 15% after the 1st twelve months, consistent with what he had allegedly generated from his diversified (non-existent) inventions.
Given these facts, is Jeremy guilty of any reliable practices violations beneath the Uniform Securities Act (USA)?
A. No. The facts don’t indicate whether or not any partnership interests have been practically offered, and there ought to always nonetheless be no violation till there is a sale.
B. No. An pastime in a partnership is admittedly now no longer thought about a reliable practices.
C. No. It is admittedly now no longer a crime to settle for as suited with in oneself and promote one’s principles.
D. Yes. Even an 'give' to sell securities ought to always now no longer incorporate any untruths.
Answer: D
Explanation:
Yes. Jeremy is guilty of reliable practices violations beneath the Uniform Securities Act when he adds deceptive tips when presenting securities for sale, even if no securities are practically offered. Partnership interests fall beneath the definition of securities, and Jeremy’s claim to have generated a go back of no less than 15% on diversified inventions that he by no means created is an absolute falsehood.
Question: 16
Although an Administrator has broad powers, she or he cannot:
A. issue subpoenas involving mandatory attendance.
B. gather evidence.
C. provide a judicial injunction.
D. formulate regulations and orders.
Answer: C
Explanation:
An Administrator has broad powers, but she or he cannot provide a judicial injunction since an Administrator doesn't have the authority bestowed on a court of laws. The Administrator can issue subpoenas to require attendance, participate in evidence amassing, and formulate regulations and orders.
Question: 17
'Federal covered securities' have been explained and exempted from state registration necessities by the:
A. National Securities Markets Improvement Act of 1996 (NSMIA.)
B. Gramm-Leach-Bliley Act of 1999 (GLBA.)
C. Uniform Securities Act (USA.)
D. National Conference of Commissioners on Uniform State Laws (NCCUSL.)
Answer: A
Explanation:
The National Securities Markets Improvement Act of 1996 explained 'federal covered securities' and exempted them from state registration necessities. The Gramm-Leach-Bliley Act focusing on monetary associations and furnished for their registration as broker-dealers beneath extraordinary stipulations. The National Conference of Commissioners on Uniform State Laws (NCCUSL) is the association that drafted the Uniform Securities Act, which is admittedly now no longer constituted of related legal policies itself, but is, moderately, in basic terms a guideline for every single state to use when formulating its personal securities legal policies.
Question: 18
Rich Quick is a broker-supplier authorized interior the state of Massachusetts and has offices solely within the state. Two of Rich Quick’s consumers constantly excursion in Florida interior the middle of the wintry weather months, and Rich Quick executes trades for them once they call him from out-of-state.
Based on these facts,
I. Rich Quick necessities to check in as a broker-supplier interior the state of Florida as smartly.
II. Rich Quick necessities to check in solely as an agent interior the state of Florida.
III. Rich Quick necessities to grasp an administrative center interior the state of Florida in order to transact business.
IV. Rich Quick needn't test in in Florida.
A. Statements I and III are suited.
B. Statements II and III are suited.
C. Only Statement I is suited.
D. Only Statement IV is suited.
Answer: D
Explanation:
Based at the facts furnished, Rich Quick needn't test in in Florida since he has no offices interior the state of Florida, and he's conducting business for existing consumers who're merely vacationing in Florida and are now no longer citizens of the state.
Question: 19
Most extraordinary human being state securities legal policies in these days are consistent with:
A. the Uniform Securities Act of 1956.
B. the Uniform Securities Act of 2002.
C. the National Securities Markets Improvement Act of 1996.
D. the Gramm-Leach-Bliley Act of 1999.
Answer: A
Explanation:
Most extraordinary human being state securities legal policies retain to be consistent with the 1956 Uniform Securities Act. Although the Uniform Securities Act was revised in 1985, 1988, and 2002, none of the ones revisions have been extensively incorporated by the weird human being states. The National Securities Markets Improvement Act of 1996 dealt and not using a doubt with the definition of federal covered securities and extra efficient leadership of mutual funds. The center of attention of the Gramm-Leach-Bliley Act of 1999 was on monetary associations.
Question: 20
BigCash Broker-Dealers is registered interior the state and is interior the kind of buying a smaller broker-supplier, Target Investments, as a subsidiary. Target Investments also is registered interior the state.
After ending the acquire, what actions ought to always BigCash take relating to registration of its new subsidiary?
A. BigCash desire do now no longer in anyway since Target Investments was already duly registered with the state as a broker-supplier.
B. BigCash ought to always document a ultra-smooth application with the state to check in its new subsidiary, but will have the power to utilize the the the rest of any annual submitting rates that Target Investments had paid for the year.
C. BigCash ought to always document a ultra-smooth application with the state to check in its new subsidiary and ought to always also pay the yearly submitting rates required by the Administrator.
D. BigCash will ought to pay the yearly submitting rates required by the Administrator, but will now no longer ought to document a ultra-smooth registration application.
Answer: B
Explanation:
After ending the acquire, BigCash will ought to document a ultra-smooth registration application for its new subsidiary, but BigCash can utilize the the the rest of any annual submitting rates that Target Investments had paid for the year. Although registration applications are by no means transferable, annual submitting rates are.
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