Exam (elaborations)
Series 63 - Practice Exam Questions and Answers (Latest Update 2024)
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Series 63 - Practice Exam Questions and Answers (Latest Update 2024)
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Series 63 - Practice Exam Questions andAnswers (Latest Update 2024)
An existing customer of a broker-dealer registered in State A
is vacationing in State B. Can the broker-dealer solicit the
customer? - Correct Answer✅ The broker-dealer may solicit
the customer in State B without registering in State B.
If a broker-dealer effects a transaction in a state (unless an
exemption is available), the broker-dealer must be registered
in that state. One of the exemptions available, however,
covers the instance where an existing customer of a
registered broker-dealer is vacationing in another state. That
customer may be contacted while on vacation in the other
state without the broker-dealer being required to register in
that state.
Which of the following is/are defined as either a "sale" or an
"offer to sell" common stock of an issuer?
I. Any offer to sell the common stock for value
II. Any solicitation of an offer to buy the common stock for
value III. The sale of a bond with detachable warrants to buy
the common stock of that issuer
IV. The gift of the common stock to an employee of the issuer
- Correct Answer✅ I, II, & III
The definition of a "sale" is every contract of sale, contract to
sell, or disposition of a security or interest in a security for
value. The definition of an "offer to sell" is every attempt or
offer to dispose of or solicitation of an offer to buy a security.
In addition, the sale or offer of a security that includes rights
,Series 63 - Practice Exam Questions and
Answers (Latest Update 2024)
or warrants to buy another security is considered to be an
offer or sale of the other security. The gift of a security is not
considered to be a sale unless the security is assessable.
Common stock is non-assessable; therefore, it is simply a gift,
not a sale.
An applicant's registration can be denied by the Administrator
if that individual was convicted within the past ___________ of
any misdemeanor involving a security or any aspect of the
securities business or any felony. - Correct Answer✅ 10 years
An applicant's registration can be denied if he or she was
convicted of a misdemeanor involving securities or any felony
within the past 10 years.
It is prohibited for an investment adviser to be compensated
only on the basis of __________ achieved. It is allowable for the
adviser to receive a percentage of all assets under
management (even if this value includes capital gains) or for
a fixed fee arrangement to be established. - Correct
Answer✅ capital gains
Securities that are sold through a private placement
_________. - Correct Answer✅ are unregistered
Securities sold through a private placement are unregistered
and are an exempt transaction. Under Uniform State Law, a
, Series 63 - Practice Exam Questions and
Answers (Latest Update 2024)
private placement is defined as an offer to no more than 10
persons in a 12 month period.
The Administrator is NOT empowered to __________. - Correct
Answer✅ Issue injunctions
The Administrator can issue subpoenas even to persons
outside the Administrator's state. It is also possible for the
Administrator to conduct investigations to determine if any
securities laws have been broken and to hold hearings. It is
not possible, however, for the Administrator to issue an
injunction against the alleged violator. The Administrator may
only petition the appropriate court to issue an injunction.
Under the Uniform Securities Act, the term 'sale' or 'sell'
includes which of the following? I. A disposition of a security
for consideration
II. A stock dividend given to stockholders in lieu of a cash
dividend
III. An exchange of stock in a merger transaction which is
approved by stockholders - Correct Answer✅ I only
To be considered to be a sale, there must be some
consideration or exchange of value. Sales do not include bona
fide pledges of securities as collateral for loans, stock
dividends, corporate mergers approved by stockholders, the
exchange of corporate assets in consideration of stock of
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