Series 63 Final 4 Exam 2025 - 100% Accurate Solutions
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Course
Series 63
Institution
Series 63
Which of the following would be considered an advertisement under the Marketing Rule?
A conversation between an IA representative and a client about investment options
B response to a prospective client's request for information on the lA's hypotheticol performance results
C Form ADV Part 2 mail...
SERIES 63 FINAL 4 EXAM 2025 - 100% ACCURATE
SOLUTIONS
1, Which adviser is considered to have taken custody of client funds?
A An adviser that accepts S200 of advisory fees as a prepayment
covering the upcoming 5 months
B An adviser that accepts $300 of advisory fees as a prepayment
covering the upcoming 4 months
C An adviser that accepts $700 of advisory fees as a prepayment
covering the upcoming 6 months
D All of the above - Precise Answer ✔✔C = An adviser that accepts
$700 of advisory fees as a prepayment covering the upcoming 6 months
2, All of the following are prohibited as market manipulation EXCEPT:
A Marking the close
B Matching orders
C Front running
D Guaranteeing appreciation - Precise Answer ✔✔D = Guaranteeing
appreciation
3, Which of the following would be considered an advertisement under
the Marketing Rule?
A conversation between an IA representative and a client about
investment options
,B response to a prospective client's request for information on the lA's
hypotheticol performance results
C Form ADV Part 2 mailed to all current clients
D email about a new portfolio option sent to current clients - Precise
Answer ✔✔D = email about a new portfolio option sent to current
clients
4, Which of the following statements is an investment adviser
representative allowed to make?
A "If you invest with me you are guaranteed to make money. Don't
believe me? Just look at the results of past clients."
B "If you invest in government bonds and hold them to maturity you are
guaranteed to receive your principal and all interest due."
C "Having passed my qualifying examinations. I am certified by FINRA
to serve as an registered representative."
D None of these statements would be acceptable - Precise Answer ✔✔B
= "If you invest in government bonds and hold them to maturity you are
guaranteed to receive your principal and all interest due."
5, Profitable Decisions is a broker-dealer firm that regularly uses links to
third-party social media sites on its company website. Recently, the site
provided a link to a social media site that offered positive reviews
related to several securities that the firm regularly sold from its
inventory. In a couple of cases, however. the site's information offered
exaggerated assessments of the values of these securities. Which of the
following is true of the firm's obligation after making this discovery?
,A It should remove the third-party links since the information provided
is inaccurate and misleading and making it available on the company
website violates FINRA regulations
B As long as the third party website is not affiliated with the firm in any
way, the link does not need to be removed
C As long as the third party site includes both positive and negative
information about the firm. the firm is not obligated to remov - Precise
Answer ✔✔A = It should remove the third-party links since the
information provided is inaccurate and misleading and making it
available on the company website violates FINRA regulations
6, Employees of Jacques Frere, an investment advisory firm, use third-
party research reports regularly to assist them in their day-to-day
business practices. Which of the following is true of this mode of
conduct?
A It is strictly prohibited under all circumstances
B It is prohibited unless proper disclosure is given
C It is only prohibited if the research reports highlight positive aspects
of Free's business dealings
D Third-party research reports are always allowed - Precise Answer
✔✔B = It is prohibited unless proper disclosure is given
7, The holder of which of the following designations is least likely to
help you reach your financial goals?
A Certified Financial Planner
B SEC-Certified Wealth Management Specialist
C Chartered Financial Analyst
, D Chartered Public Accountant - Precise Answer ✔✔B = SEC-Certified
Wealth Management Specialist
8, Regarding non-issuer transactions, a non-issuer is:
A broker-dealer
B investment adviser
C Any person who is not acting directly or indirectly for the benefit of
the issuer
D Any person who issues non-exempt securities - Precise Answer ✔✔C
= Any person who is not acting directly or indirectly for the benefit of
the issuer
9, Which of the following is a "security?"
A real estate
B closed end investment company shares
C gold futures
D fixed annuity - Precise Answer ✔✔B = closed end investment
company shares
10, An agent makes a sale of 500 shares of XYZ common stock at $50
per share to Mr. White. Two weeks later, Mr. White learns that the sale
was not legal. What may Mr. White recover by filing a civil suit
regarding this matter?
I. $25,000 plus fees or commissions
Il. court costs and attorney's fees
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