Series 63 - Regulation of Persons || with Accurate Answers
100%.
Administrator correct answers The office or agency that has complete responsibility for
adminstering the securities laws of the state.
-Has jurisdiction over virtually all securities activity that emanates from his state, and what is
received in his state.
-Can make rules and issues orders
-Can deny, suspend, revoke registrations
Cease and Desist Order correct answers used by the Administrator whenever it appears taht any
registered person has engaged or is about to engage in any act or practice constituing violation of
any provision of the Uniform Securities Act or any rule or order thereunder
-may be issued w or w/o prior hearing
-ONLY APPLIES TO REGISTERED PERSONS, not securities
Summary order (Acting Summarily) correct answers The Aministrator can act without prior
notice in regard to registration of both persons and securities. 3 cases:
-Postponing/suspending the registration of any securities professional pending a final
determination of a proceeding related to a problem
-Postponing or suspending the registration of a security pending a final determination of a
proceeding relating to a problem
-Denying or revoking a specific security or transaction exemption
**must promptly notify all parties that it has been entered, reasons for the order, adn that within
15 days after the receipt of a written request, a hearing will be granted
Final Orders correct answers Whether referring to persons/exemptions/registrations, other than in
the case of a summary order, no final order may be entered without:
-appropriate prior notice to the interested parties
-the opportunity for a hearing
-written findings of fact and conclusions of law
Blue Sky Laws correct answers State securities laws
Person correct answers "natural person" or individual, corporation, partnership, association, joint
stock comapny, or trust where the interests of the beneficiaries are evidenced by a security, an
unincorporated organization, a governments, or a political subdivision of a government
Nonpersons correct answers Minors, deceased individuals, individuals legally declared mentally
incompetent
Broker dealer correct answers Any person engaged in the business of effecting transactions in
securities for the accounts of others or for its own account
-when acting on behalf of others, they are acting as brokers
-when acting on behalf of themselves, they are dealers
, ***primary function of any broker-dealer is making securities transactions
*in almost all cases, BD's register with both the SEC and the state(s)
Agent correct answers Any individual, other than a broker-dealer, who represents a broker-dealer
or issuer in effecting or attempting to effect purchases or sales of securities
***these are always individuals (natural persons) and their function is to be involved in
securities sales or supervise those who do
**on FINRA exams; often referred to as registered representatives
**almost always work for broker dealers
Investment Advisor correct answers -Who, for compensation, engages in the business of advising
others, either directly or through publications or writings, as to the value of securities or as to the
advisability of investing in, purchasing, or selling securities
-Who, for compensation and as part of regular business, issues or promulgates analyses or
reports concerning securities
***registered with either the SEC or the State, but NEVER both
Investment Advisor Representative correct answers Any individual who represents a state-
registered investment advisor or federal covered investment adviser performing duties related to
the giving of or soliciting for advisory services
Issuer correct answers Any person who issues or proposes to issue any security
-primarily include corporations and governemnts
-Exclude under the USA: any issuer w/ respect to certificates of interest/participation in oil, gas,
or mining titles or leases
Nonissuer correct answers Not directly or indirectly for the benefit of the issuer
-nonissuer transaction is one where the issuer does not receive the money because the seller of
the security is someone other than the issuer
**basic, everyday trading on stock markets
Security correct answers Includes those items one normally thinks of as securities (stocks, bonds,
debentures, mutual funds, variable annuities) but also includes weird items like investment
contract and a pre-organization certificate
Exempt security correct answers Exempt = excused from certain requirements
-Exempt security under USA means iit does NOT have to be registered in order to be sold, and
there are no requirements to file advertising about the security with the administrator
Exempt tranaction correct answers One in which the nature of the sale is such that registration
with the Administrator adn filing of advertising material WAS NOT required
Guaranteed correct answers Guaranteed as to payment of principal, interest, or dividends, but
NOT CAPITAL GAINS.
***when used on exam, refers to a security with a guarantee from a third party other than the
issuer of the security
