FINRA Series 63 Unit 1 || All Questions Answered Correctly.
National Conference of Commissioners on Uniform State Laws (NCCUSL) correct answers
Founded in 1892, this is an organization composed of lawyers who draft and propose template
state legislation where uniformity in law among the states is deemed to be desirable. It was this
organization that wrote the Uniform Securities Act. The organization does not, of course,
actually write laws, but rather proposes legislation that a state may adopt if it chooses.
National Conference of Commissioners on Uniform State Laws correct answers NCCUSL
North American Securities Administrators Association (NASAA) correct answers Founded in
Kansas in 1919, this organization is the oldest international investor protection organization. Its
current membership is 67 Administrators from the territories, districts, and states of the United
States, from Mexico, and from the provinces of Canada. The Series 63 is written by this
organization and administered by FINRA.
North American Securities Administrators Association correct answers NASAA
Administrator correct answers The official or agency administering the securities laws of a state
Stop Order correct answers Action the Administrator takes to prevent a registration of a security
in his state. Unlike cease and desist orders, these orders require prior notice to the affected party
and a hearing with a written finding.
Person correct answers Any entity that can be held to a contract; an individual, corporation, trust,
government, political subdivision, and unincorporated association are all examples
Broker-Dealer correct answers A firm that acts for the securities accounts of others or its own
account in trades. Excludes: Agents, Issuers, Banks, Saving Institutions, and Trust Companies,
Firms that fit the definition, but have no office in the state and effect transactions only with
accredited investors such as issuers, banks, insurance companies, or other broker-dealers, with
non-residents of the state, or with existing clients who have fewer than 30 days' residency in the
state.
Investment Adviser correct answers Any person who, for compensation, is in the business of
offering investment advice on securities.
Issuer correct answers 1) The corporation, government, or other entity that offers in securities for
sale. 2) According to the USA, any person who issues or proposes to issue any security. When a
corporation or municipality raises additional capital through an offering of securities that
corporation or municipality is the issuer of those securities
Nonissuer correct answers A person other than the issuer of a security.
, Security correct answers An investment instrument represented by a certificate or other
securitized document, ownership of which yields unpredictable profits or losses that stem from
the actions of a third party, usually the issuer of the security.
Exempt correct answers Not being required to do something that others are required to do.
Exempt Transaction correct answers A transaction exempt form registration, sale literature, and
advertising requirements under the Uniform Securities Act.
Guaranteed correct answers Securities that have a guarantee, usually form a source other than the
issuer, as to the payment of principal, interest, or dividends, but not capital gains
Offer correct answers 1) Under the USA, every attempt to solicit a purchase or sale in a security
for value 2) An indication by an investor, trader, or dealer of a willingness to sell a security or
commodity
Offer, Offer to Sell correct answers The terms _______________ and _____________ include
every attempt to ffer to dispose of, or solicitation of an offer to by a security or interest in a
security for value.
Sale (Sell) correct answers The act of conveying ownership of a security or other property for
money or other value; every contract to sell a security or an interest in a security. Sale include
the following
* Any security given or delivered with, or as a bonus for, any purchase of securities is considered
to have been offered and sold for value
* A gift of assessable stock is considered to involve an offer and sale
* Every sale or offer of a warrant or right to purchase or subscribe to another security is
considered to include an offer of the other security
Fraud correct answers The deliberate concealment, misrepresentation, or omission of material
information or the truth to deceive or manipulate another party for unlawful or unfair gain.
Self-Regulatory Organization (SRO) correct answers An entity that is accountable to the SEC for
the enforcement of federal securities laws, as well as for the supervision of securities practices,
within an assigned field of jurisdiction.
Self-Regulatory Organization correct answers SRO
Financial Industry Regulatory Authority (FINRA) correct answers The largest regulator for
securities firms doing business in the United States. It oversees approximately 635,000 registered
representatives. Overseen by the SEC, it's primary role is to maintain the fairness of U.S. capital
markets
Financial Industry Regulatory Authority correct answers FINRA
