FINRA Series 63 Unit 2 || with 100% Accurate Solutions.
Investment of Money, Common Enterprise, Expectation of Profits, Derived from Efforts of a
Person (other than investor) correct answers For an instrument to be a security, the court held, it
must constitute...
Common Enterprise correct answers An enterprise in which the fortunes of the investor are
interwoven with those of either the person offering the investment, a third party, or other
investors
Note, Stock, Treasury Note, Bond, Debenture, Evidence of Indebtedness, Certificate of Interest
or Participation in a Profit-Sharing Agreement, Collateral Trust Certificate, Preorganization
Certificate or Subscription, Transferable Share, Investment Contract, Voting Trust Certificate,
Certificate of Deposit, Certificate of Interest or Participation in an Oil, Gas, or Mining Title,
Puts, Calls, Straddles, Options, or Privilege on Security, Interest or Instrument Commonly
Known as Security, Certificate of Interest or Participation in Receipts of, Guarantees of, or
Warrants or Rights to Subscribe to or Purchase Any of the Above correct answers Under the
Uniform Securities Act, "security" means any...
An Insurance or Endowment Policy or Annuity Contract Under Which an Insurance Company
Promises to Pay a Fixed Sum of Money Either in a Lump Sum or Periodically, Interest in
Retirement Plan, Collectibles, Commodities, Condominiums, Currency correct answers Items
not securities under the Uniform Securities Act
Nonsecurity Investments correct answers Collectibles, fixed annuities, precious metals, grains,
futures, real estate, and currencies are examples of...
Exempt correct answers Not subject to registration
Issuer correct answers Any person who issues (distributes) or proposes to issue a security
Issuer Transaction correct answers A transaction in which the proceeds of the sale go to the
issuer.
Primary Offering correct answers An issuer transaction involving new securities
Initial Public Offering (IPO) correct answers The first time an issuer distributes securities to the
public
Subsequent Public Offering (SPO) correct answers Any subsequent issuance of new shares to the
public
Nonissuer Transaction (Secondary Transactions, Transactions Between Investors) correct
answers A transaction in which the proceeds of the sale do not go, either directly or indirectly, to
the entity that originally offered the securities to the public
, Registered Under the Act (Uniform securities act), Security or Transaction Exempted from
Registration, Federal Covered Security correct answers It is unlawful for any person to offer or
sell any security in the state unless...
Uniform Securities Act (USA) correct answers Template legislation written by the NCCUSL to
serve as the basis for a state's securities legislation if the state wished to adopt it. It regulates
securities, persons (broker-dealer and their agents and investment advisers and their
representatives), and transactions in the securities markets within the state. All but a few of the
states have adopted this in some form.
National Securities Markets Improvement Act of 1996 (NSMIA) correct answers This law
effectively divided the responsibility for regulating investment advisers between the states and
the SEC by bifurcating (splitting in two) the regulation of investment advisers and creating the
category of registration known as a federal covered adviser.
Federal Covered Security correct answers A security that was exempt from registration on the
state level
Securities Listed on NYSE, Chicago Stock Exchange, Nasdaq Stock Market, and Other
Securities Exchanges, Investment Company Securities Registered Under the Investment
Company Act of 1940, Offers and Sales of Certain Exempt Securities correct answers The major
categories of federal covered securities that cannot be regulated by state securities
Administrators include...
Open-End Management Investment Companies, Closed-End Management Investment
Companies, Unit Investment Trust, Face-Amount Certificates correct answers Examples of
investment company securities registered under the Investment Company Act of 1940
Any Security Issued or Guaranteed by the U.S. or any Bank Regulated by the Federal Reserve
Board, Securities Offered by a Municipal Issuer, Offers and Sales of Securities sold Through
certain Transactions, such as Securities Offered to Qualified Purchasers Under Regulation D of
Securities Act of 1933 correct answers Examples of certain exempt securities
Notice Filing, Coordination, Qualification correct answers Methods of state registration of
securities
Notice Filing correct answers 1) Method by which a registered investment company and certain
other federal covered securities file records with state securities Administrators 2) SEC-
registered advisers (federal covered) may have to provide state securities authorities (the
Administrator) with copies of documents that are filed with the SEC and pay a filing fee
Documents Filed Along with Their Registration Statements Filed with the SEC, Documents
Filed as Amendments to the Initial Federal Registration Statement, Report on the Value of Such
Securities Offered in State, Consent to Service of Process correct answers Under the notice filing
procedure, state Administrators may require the issuer to file what documents as a condition for
sale of their securities in the state?
