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FINRA Series 63 Exam 149 Questions with Verified Answers,100% CORRECT
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FINRA Series 63 Exam 149 Questions with Verified Answers
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FINRA Series 63 Exam 149 Questions with Verified AnswersSelling away - CORRECT ANSWER when a representative engages in private
securities transactions without the knowledge or consent of his employer.
commingling - CORRECT ANSWER when a brokerage firm combines its securities
with customer's securities (e.g., to present collateral for a bank loan).
historical performance - CORRECT ANSWER may be shown to investors as long as
proper disclosure is provided indicating that it DOES NOT predict future results.
legal person - CORRECT ANSWER an entity that can engage in legal activities such
as signing contracts or opening accounts. These folks are not dead, minors, or
people who have been declared mentally incompetent.
promptly - CORRECT ANSWER The time frame that agents as well as broker-
dealers or issuers notify the Administrator when agents begin or terminate
employment.
December 31st, annually - CORRECT ANSWER Registration for both agents and
investment adviser representatives expires:
administrator - CORRECT ANSWER The official or agency administering the
securities laws of a state.
advertisement - CORRECT ANSWER Any material designed for use by newspapers,
magazines, radio, television, telephone recording or any other public medium to
solicit business.
agent - CORRECT ANSWER An individual who represents a broker/dealer or an
issuer when selling or trying to sell securities to the investing public. This
individual is considered an _____ whether he or she actually receives or simply
solicits orders. Also known as "registered representatives."
,anti-fraud rules - CORRECT ANSWER Although exempt securities and securities
sold in exempt transactions are exempt from the registration and advertising
filing requirements of the Uniform Securities Act, no security or person is exempt
from the ________________.
associated person - CORRECT ANSWER Any employee, manager, director, officer
or partner of a member broker/dealer or another entity (issuer, bank, etc.) or any
person controlling, controlled by or in common control with that member is
considered an _____________________ of that member.
blue-sky laws - CORRECT ANSWER State regulations governing the securities
industry.
broker/dealer - CORRECT ANSWER any person engaged in the business of
effecting transactions in securities for the account of others or for his own
account.
consent to service of process - CORRECT ANSWER When applying for registration
in a state, agents, broker/dealers and investment advisers must agree to respond
to all subpoenas served on them in that state, even if they don't reside there. This
is called _____________________________.
exempt security - CORRECT ANSWER A security exempt from the registration
requirements (although not from the anti-fraud requirements) of the Uniform
Securities Act (for example, U.S. government and municipal securities).
exempt transaction - CORRECT ANSWER A transaction exempt from registration
and advertising requirements under the Uniform Securities Act. Examples of
exempt transactions include private placements and fiduciary transactions.
federal covered advisor - CORRECT ANSWER An investment adviser that is
regulated by the Securities Exchange Commission (SEC) under the Investment
Adviser's Act of 1940 rather than the state. Generally, those who manage
investment company (mutual fund) portfolios or those who have more than $30
million in assets under management.
, federal covered security - CORRECT ANSWER Security exempt from state
registration. Includes new securities issued by companies whose securities
already trade on a national securities exchange or in the NASDAQ National
Market System, including any security senior or equal to that security. Also
exempt from state registration are new securities issued by investment
companies (mutual funds).
fidelity (surety) bond - CORRECT ANSWER A type of bond that indemnifies
customers against losses due to check forgery, lost securities, or fraudulent
trading. May be required of every agent, broker/dealer and investment adviser at
the discretion of the Administrator. Minimum coverage must not be less than
$35,000. Broker/dealers with net capital of $35,000 or more may be exempt from
the requirement. Appropriate deposits of cash or securities are acceptable by the
administrator in lieu of a bond.
fraud - CORRECT ANSWER The deliberate concealment, misrepresentation or
omission of material information or the truth to deceive or manipulate another
party for unlawful or unfair gain.
guaranteed securities - CORRECT ANSWER A __________ ________ is one
guaranteed for the payment of principal, interest or dividends.
inside information - CORRECT ANSWER Material and non-public information
obtained or used by a person for the purpose of trading in securities.
insider - CORRECT ANSWER Any person who has non-public knowledge (material
information) about a corporation. Includes directors, officers and stockholders
who own 10% or more of any class of equity security of a corporation.
institutional investor - CORRECT ANSWER An organization that trades large
volumes of securities, such as a mutual fund.
investment advisor - CORRECT ANSWER Any person who, for compensation (a flat
fee or a percentage of assets managed), offers investment advice 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; or who, for
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