A transactional exemption would be available when a sale is made in all of the following situations EXCEPT
A)
to a federally chartered credit union
B)
to a lawyer as an incidental part of his legal practice
C)
to a broker-dealer by a non-affiliated broker-dealer
D)
by a federal marshal to i...
Series 63 || A Verified A+ Pass.
A transactional exemption would be available when a sale is made in all of the following
situations EXCEPT
A)
to a federally chartered credit union
B)
to a lawyer as an incidental part of his legal practice
C)
to a broker-dealer by a non-affiliated broker-dealer
D)
by a federal marshal to individual investors correct answers B
The Uniform Securities Act provides for civil penalties in the event of improper activities of
agents. Under the act, the maximum that a purchaser would be entitled to claim would be the
original consideration paid for the security interest at the state's legal rate attorney's fees court
costs
A)
III and IV
B)
I and II
C)
I, II, III, and IV
D)
I, III, and IV correct answers C
Under the Uniform Securities Act, the state Administrator may by order deny, suspend or revoke
an investment adviser's registration for
A)
conviction for a nonsecurities-related felony more than 15 years ago
B)
violation of another state's securities laws within the last 5 years
C)
conviction for a securities-related misdemeanor more than 15 years ago
D)
lack of experience as an investment adviser correct answers B
All of the following are exempt transactions under the USA EXCEPT
A)
a sale of common stock by an administrator of an estate, sheriff, marshal, receiver, trustee in
bankruptcy, guardian, or conservator
B)
initial sale of shares to in-state residents of a local manufacturing company
C)
a rescission offer, sale, or purchase
D)
,a securities transaction by an executor correct answers B
Different types of accounts have different times for receipt of customer information. Which of
the following does NOT correctly state the required time for the specified account?
A)
Margin account agreements must be received before the first margin trade in the account.
B)
The options account agreement must be received within 15 days after the customer's account has
been approved.
C)
Written discretionary account authorization must be received by a broker-dealer before
exercising discretion.
D)
Written discretionary account authorization must be received by an investment adviser within 10
days after the initial discretionary trade. correct answers A
Which of the following securities is (are) exempt from registration under the Uniform Securities
Act?Municipal securitiesGovernment securitiesStock or bonds issued by an insurance company
authorized to do business in this state
A)
I and III
B)
I, II, and III
C)
I only
D)
II and III correct answers B
A broker-dealer with an office in this state must register as an investment adviser if it
chargescommissions for selling securitiescommissions for selling securities while offering
investment advice incidental to the sale of the securitiesa fee for selling investment research and
additional fees in the form of commissions for the sale of securitiesfees for investment research
sold exclusively to institutions located in this state
A)
II and III
B)
I and II
C)
III and IV
D)
I and IV correct answers C
An agent's license could be revoked if he were any of these EXCEPT
A)
declared insolvent
B)
,convicted of a nonsecurities-related felony
C)
convicted of a securities-related misdemeanor
D)
under 21 years of age correct answers D
Registration as an agent would be required of a sales assistant whoaccepts unsolicited orders
from clientstakes telephone messages for the registered agentposts updates to client
recordssolicits new clients for the firm
A)
II and III
B)
I and IV
C)
III and IV
D)
I and III correct answers B
A registered investment adviser has been investigated by the Administrator for fraudulent
misrepresentations purportedly made to several clients. If the IA is found to have been in
violation of the Uniform Securities Act, this may result ina $10,000 fine per violationa receiver
being appointed over the adviser's assetsa prison term of 5 years per violationthe requirement
that the investment adviser make restitution to the victims
A)
II and IV
B)
I and II
C)
III and IV
D)
I and III correct answers A
Under the Uniform Securities Act, a client may sue an agent
A)
only if the agent is still alive
B)
unless the agent's broker-dealer offers to return the client's purchase price plus interest
C)
for up to 5 years from the date of the violation
D)
only if the broker-dealer goes out of business correct answers B
If it is in the public interest, under the Uniform Securities Act, an agent's registration may be
suspended by the Administrator for all of the following reasons EXCEPT
A)
the agent is enjoined by a court of law from engaging in the securities business
, B)
the agent is accused of violations of the antifraud provisions of the USA
C)
it has been discovered that the agent is not properly supervised
D)
the agent is convicted of willful violations of the USA correct answers B
Under the Uniform Securities Act, an investment adviser would be exempt from registration in a
state in which he has no place of business if he
A)
had no more than 10 retail clients in that state within the past 12 months
B)
had no more than 15 retail clients in that state within the past 12 months
C)
is registered as a broker-dealer
D)
had no more than 5 retail clients in that state within the past 12 months correct answers D
Which of the following statements best describes rights of rescission under the USA?
A)
An investor who believes he has been wronged in conjunction with a violation of the USA may
be entitled to restore his former financial condition as if the transaction had not occurred.
B)
Any investor who loses money in a securities transaction can be made financially whole under
the rights of rescission.
C)
An agent who unknowingly violated the USA may be imprisoned for up to 5 years.
D)
Rights of rescission are not generally available to public customers under the USA, although
such rights may be made available to institutional investors. correct answers A
An agent is discussing an equity index annuity purchase with a client. The agent explains that
there are several which she feels are equally suitable for the client, but one of the companies is
offering a trip for 2 to Las Vegas for reaching certain sales goals. She continues by stating that
this sale will put her over the goal and win her the trip. If the client purchases that annuity, the
agent
A)
should only sell what is suitable for the client based on all available information
B)
will probably be disciplined for failure to disclose the potential conflict of interest
C)
should pack her bags and leave the firm before the compliance department learns of her actions
D)
should pack her bags for the trip; she earned it correct answers D
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