Series 63 A+ GRADED EXAM 2024
VERIFIED
what is a conservatorship - //type of estate where a court
appointed guardian takes control of an incapiciated indivudals
financies, real estate and other monetray affairs. can be related
or non related or a financial institutionl.
what is a broker/dealer - //firm that effects securities transactions
for its own account or for the accounts of others
Who must a broker dealer register with? - //USA in the state it
does business in.
When a broker dealer makes trades for its own account it is acting
in a _____ capicity - //principal and is known as a dealer
when a broker dealer makes trades for someone else it is working
in a _____ capacity - //agency. and is known as a broker
Where must the capacity of the broker dealer be stated? - //trade
confirmation.
The term broker dealer does not include - //-agent
-issuers
-certain banks, savings instutions, and trust companies
,-persons that have no ofice in the state and transact securities
business within the state exclusively with
-financial institutions
-insurance companies
-investment companies
-pension plan providers
-profit sharing trusts
-trust companies
Under the USA it is illegal for a broker dealer to - //-conduct
business without proper registration or qualification for an
exemption
-employ an agent who is not registered. a registration is only in
effect while the agent has an association with the B/D or issuer
who is registered at a borker dealer with "registration" -
//automatic registration of any partners or officers of the firm if
they were with the firm at the time registration is filed or if the
officer is a supervisory or agent capacity.
what happens if a broker dealer loses its registration - //everyone
involved no longer has registration. they may not do any business
until they re-register. if an agent loses registration then the
broker dealer is not effected
Broker dealers who have no place of business in the state are
exempt if - //-Transact business only with broker dealers, issuers,
institutional buyers or financial institutions.
,-registered in the state where they maintain their place of
business and make offers only to existing customers who are not
residents of the state that the B/D is making offers into. B/D may
do business in a state as long as the client is only vacationing and
there temporarily.
-have a customer who moves to a state where the B/D is not
registered as long as the B/D files for registration within 30 days
of the first trade
-had a limited number of customers during the previous 12 month
period.
What type of person is exempt from registration as a B/D - //a
person who deals solely in United states government securities
and is supervised as that type of dealer ny the board of Governors
of the federal reserve system, the comptroller of the currency, the
federal deposit insurance corporation or the office of thrift
supervision.
What must a disclosure document state? - //-Are not FDIC insured
-Are not guaranteed and are in no other way not an obligation of
the bank
-carry investment risk.
Definition of an agent - //any individual who represents a broker
dealer or issuer in effecting or attempting to effect purchases or
sales of securities in a state. effects or attempts to effect trades.
-must be registered in every state they effect transactions or offer
to sell. ADVERTISING may constitute an offer to sell.
- commissions do not have a bearing on being an agent or not.
, Exclusions: do cclerical or ministerial workers agents need to be
registered? - //no they are excluded. officers, owners, directors
that are not involved in sales or management of the firm are not
required to register as an agent.
what are the requirements for the registration process - //-must
perform registration through the B/D
-cannot register individually with the state administrator.
details of registration - //-lose registration if not used for 2 years.
-registration becomes effective within 30 days of papers sent.
-USA has jurisdiction for 1 year after registration
Common control allows for - //dual or multiple registrations.
what individuals are exempt from registration as an agent - //-
agents who act for exempt broker/dealers
-individuals who represent an issuer with respect to an offer or
sale of the issuers own securities and who are not compensated
directly r indirectly in connection to the transactions in those
securities
-individuals representing an issuer that effects transaction only in
federal covered securities (exempt from registration and are on
an exchange or NASDAQ) does not apply if compensated for these
transactions.
individuals who represent issuers are ____ from registration as an
agent - //exempt
VERIFIED
what is a conservatorship - //type of estate where a court
appointed guardian takes control of an incapiciated indivudals
financies, real estate and other monetray affairs. can be related
or non related or a financial institutionl.
what is a broker/dealer - //firm that effects securities transactions
for its own account or for the accounts of others
Who must a broker dealer register with? - //USA in the state it
does business in.
When a broker dealer makes trades for its own account it is acting
in a _____ capicity - //principal and is known as a dealer
when a broker dealer makes trades for someone else it is working
in a _____ capacity - //agency. and is known as a broker
Where must the capacity of the broker dealer be stated? - //trade
confirmation.
The term broker dealer does not include - //-agent
-issuers
-certain banks, savings instutions, and trust companies
,-persons that have no ofice in the state and transact securities
business within the state exclusively with
-financial institutions
-insurance companies
-investment companies
-pension plan providers
-profit sharing trusts
-trust companies
Under the USA it is illegal for a broker dealer to - //-conduct
business without proper registration or qualification for an
exemption
-employ an agent who is not registered. a registration is only in
effect while the agent has an association with the B/D or issuer
who is registered at a borker dealer with "registration" -
//automatic registration of any partners or officers of the firm if
they were with the firm at the time registration is filed or if the
officer is a supervisory or agent capacity.
what happens if a broker dealer loses its registration - //everyone
involved no longer has registration. they may not do any business
until they re-register. if an agent loses registration then the
broker dealer is not effected
Broker dealers who have no place of business in the state are
exempt if - //-Transact business only with broker dealers, issuers,
institutional buyers or financial institutions.
,-registered in the state where they maintain their place of
business and make offers only to existing customers who are not
residents of the state that the B/D is making offers into. B/D may
do business in a state as long as the client is only vacationing and
there temporarily.
-have a customer who moves to a state where the B/D is not
registered as long as the B/D files for registration within 30 days
of the first trade
-had a limited number of customers during the previous 12 month
period.
What type of person is exempt from registration as a B/D - //a
person who deals solely in United states government securities
and is supervised as that type of dealer ny the board of Governors
of the federal reserve system, the comptroller of the currency, the
federal deposit insurance corporation or the office of thrift
supervision.
What must a disclosure document state? - //-Are not FDIC insured
-Are not guaranteed and are in no other way not an obligation of
the bank
-carry investment risk.
Definition of an agent - //any individual who represents a broker
dealer or issuer in effecting or attempting to effect purchases or
sales of securities in a state. effects or attempts to effect trades.
-must be registered in every state they effect transactions or offer
to sell. ADVERTISING may constitute an offer to sell.
- commissions do not have a bearing on being an agent or not.
, Exclusions: do cclerical or ministerial workers agents need to be
registered? - //no they are excluded. officers, owners, directors
that are not involved in sales or management of the firm are not
required to register as an agent.
what are the requirements for the registration process - //-must
perform registration through the B/D
-cannot register individually with the state administrator.
details of registration - //-lose registration if not used for 2 years.
-registration becomes effective within 30 days of papers sent.
-USA has jurisdiction for 1 year after registration
Common control allows for - //dual or multiple registrations.
what individuals are exempt from registration as an agent - //-
agents who act for exempt broker/dealers
-individuals who represent an issuer with respect to an offer or
sale of the issuers own securities and who are not compensated
directly r indirectly in connection to the transactions in those
securities
-individuals representing an issuer that effects transaction only in
federal covered securities (exempt from registration and are on
an exchange or NASDAQ) does not apply if compensated for these
transactions.
individuals who represent issuers are ____ from registration as an
agent - //exempt
