series 63 mock exam Questions And Complete Solutions 2024/25
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Course
Series 63
Institution
Series 63
A broker-dealer has flexibility in terms of the capacity in which it can act in a securities transaction. When buying a security from a client, the trade confirmation would - Correct Answer disclose that the firm acted as a principal in the transaction
A broker-dealer is a member of the underw...
series 63 mock exam Questions And Complete Solutions
2024/25
A broker-dealer has flexibility in terms of the capacity in which it can act in a securities transaction.
When buying a security from a client, the trade confirmation would - Correct Answer disclose that the
firm acted as a principal in the transaction
A broker-dealer is a member of the underwriting syndicate for a new issue of common stock. From all
indications, it appears that the offering will be oversubscribed. Under the NASAA Statement of Policy on
Dishonest or Unethical Business Practices by Broker-Dealers and Agents, the broker-dealer should -
Correct Answer allocate the shares of the issue to clients in a manner that is based on their indications
of willingness to purchase the shares
A client is completing a new account form that contains questions about the investor's investing
experience and knowledge. More than likely, what type of account is being opened? - Correct Answer
Options
A customer buys $20,000 worth of stock with a required 50% initial margin deposit of $10,000 cash.
When he places the order, the customer tells the agent he cannot risk more than $4,000 in the stock
market. Following a highly unfavorable news release causing a significant price drop, regulators halt
trading in the stock. When the stock is permitted to reopen, the stock's price is half the client's purchase
price and the client receives a maintenance margin call for $3,000. The customer is outraged that he has
a (unrealized) loss of $10,000 and must deposit $3,000 more to maintain the position. In the above
situation, the agent has acted - Correct Answer unlawfully, because the agent failed to warn the
customer of the true risk of margin trading
A publicly traded corporation offers its employees an opportunity to purchase shares of the company's
common stock directly from the issuer. A specific employee of the company is designated to process any
orders for that stock. Under the USA, the employee - Correct Answer must register as an agent only if
he will receive commissions or remuneration, either directly or indirectly related to the volume of sales
A registration statement for new issues of securities under the Uniform Securities Act is effective for
more than 1 year after its effective date - Correct Answer if the issuer or broker-dealer offering the
securities has an unsold allotment
, Aaron Jones, a client of XYZ Financial Services, has suspected the possible churning of his account over
the past several years but has taken no action. He consults his attorney who informs him that any lawsuit
for recovery of damages under the USA must be started within - Correct Answer three years of
occurrence or two years of discovery, whichever occurs first
An agent has raised capital from his customers with which he and his brother-in-law will build a small
shopping center (although the broker-dealer with whom he is registered is not aware of his actions). The
customers who contributed the capital received certificates of ownership in the shopping center, as well
as full disclosure of their risks, and participation in income from renting mall space to retail businesses.
In the above situation, the agent has acted - Correct Answer unlawfully because the agent gave his
broker-dealer no opportunity to supervise his activities relative to its customers
An agent is very satisfied with the work being done by his unregistered sales assistant and would like to
compensate her with 5% of his commissions. Under the NASAA Statement of Policy on Dishonest or
Unethical Business Practices of Broker-Dealers and Agents, this would be - Correct Answer an
unacceptable practice because only registered agents may receive sales related compensation
An elderly widow with no independent income wishes to invest the proceeds from her recently
deceased husband's life insurance. Which of the following would be the most suitable recommendation?
- Correct Answer Large-cap income stocks
An individual functioning as an investment adviser representative for a federal covered adviser, with no
place of business in this state, would be required to register in this state if - Correct Answer he conducts
frequent public seminars in the state
An individual meets the Uniform Securities Act's definition of an agent in all of the following cases
EXCEPT - Correct Answer when acting on behalf of an issuer of a security in transactions with an
underwriter
An interest in which of the following is a security under the Uniform Securities Act? - Correct Answer
Merchandising marketing scheme
Multilevel distributorship arrangement
Oil and gas drilling program
Cattle feeding program
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