100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Previously searched by you
Previously searched by you
logo
Series 63 || with Error-free Solutions. $11.49
Add to cart
Quickly navigate to
Preview
  2.  
  3. Series 63 ||
  4.  
  5. Series 63 ||

Exam (elaborations)

Series 63 || with Error-free Solutions.
 0 purchase
  • Course
  • Series 63 ||
  • Institution
  • Series 63 ||

Which of the following are required to open a margin account? I. Customer loan agreement II. Margin risk disclosure III. Margin account agreement IV. Margin interest disclosure correct answers A) I and III- Customer loan agreement, margin account agreement Andrew is an agent who has done ext...

[Show more]

Preview 2 out of 12  pages

Document information

  • September 5, 2024
  • 12
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers

Subjects

  • which of the following are required to open a marg

Written for

  • Series 63 ||
  • Series 63 ||

Seller

avatar-seller
FullyFocus

Reviews received

Content preview

Series 63 || with Error-free Solutions.
Which of the following are required to open a margin account?
I. Customer loan agreement
II. Margin risk disclosure
III. Margin account agreement
IV. Margin interest disclosure correct answers A) I and III- Customer loan agreement, margin
account agreement

Andrew is an agent who has done extensive personal research on XYZ Industries, a
pharmaceutical company. ANdrew wants to take advantage of what he considers an excellent
growth opportunity by purchasing XYZ inc at the current market price; however, he has limited
funds to do so. Under what circumstances may ANdrew borrow funds from his clients to make
the trade? correct answers A) He may borrow the funds from any client that is an affiliate of the
Investment Adviser and is willing to make the loan.

WHich of the following are defined as federal covered securities?
I) Securities issued by investment companies registered under the Investment Company Act of
1940;
II) Municipal securities sold outside the state of issue;
III) Securities listed on the NYSE correct answers All are federal covered; municipal securities
are only exempt outside the state of issue, and are nonexempt or not federal covered within the
state of issue.

What is the key difference between the recordkeeping requirements for a BD and an IA? correct
answers B) A broker dealer may keep records in any form of data storage that is accessible to the
administrator and permitted under the SEC of 1934; however, investment advisers are required to
use storage methods approved by the SEC or the USA.

WHich best describes the conditions under which an agent may be associated with more than 1
BD at the same time? correct answers A) the administrator allows multiple registrations and the
agent files a separate application through each firm.

An appeal of a State administrators decision must be filed correct answers D) within 60 days

When does the administrator have the right to subpeona the records of an agent or BD? correct
answers If there is suspicion that a violation has occurred

FOr equipment trust cetificates and other collateralized securities, the issuer is correct answers
The person who owns the equipment

Individuals are NOT considrered agents when effecting which of the following securities
transactions?
I) Transactions with a trust company
II) trades in Canadian government securities
III) Representing a BD in the sale of US government securities

, IV) Private placement transactions correct answers I, II and IV
I) Transactions with a trust company
II) trades in Canadian government securities
IV) Private placement transactions

A CPA for CYZ Corp knew in advance that XYZ would report a quarterly earnings loss. Based
on this knowledge and proir to the release of the company's quarterly earnings report, the CPA
sold short a large block of XYZ stock which drove down the price of the stock. ANother investor
who had entered an order to sell XYZ at the market around the same time sold at a very low
price due to CPAs block trade. What legal recourse does the investor have against this CPA?
correct answers A) File a lawsuit for damages. THis is an example of contemporaneous trading;
investors who are harmed by insider trading can sue the violator for damanges.

A customer's right to be indemnified if defrauded in a securities transaction is known as the right
of correct answers Recission

When an entity makes a market in a particular security, it is deemed to be acting as correct
answers A principal

An agent hears a rumor concerning an investment and uses the information to influence a
customer who has hesitated to make a purchase. Which of the following statements is true?
correct answers Under no circumstance would this be allowed. The use of information that has
no basis in fact is strictly prohibited. The use of rumors is a misrepresentation and a violation of
the USA.

Which of the following are true regarding investigations conducted by the Administrator under
the USA?
I) Information regarding violations must be kept confidential.
II) Investigations may be conducted across state lines
III ) the administrator may obtain a court order to have a receiver appointed over a violator's
assets. correct answers II & III
II) Investigations may be conducted across state lines
III ) the administrator may obtain a court order to have a receiver appointed over a violator's
assets.

Under the USA, which of the following is/are true about agents sharing profits in a customer's
account?
I) It is prohibited.
II) It is permitted if both the customer and the BD approve.
III) Sharing must be in proportion to the agent's personal contributions.
IV) Sharing agreements must be agreed upon when the account is opened. correct answers II
only-
An agent may establish a joint account with a customer as long as both the customer and the
agent's employing BD agree.

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller FullyFocus. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $11.49. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

69252 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 15 years now

Start selling
$11.49
  • (0)
Add to cart
Added