Series 63 || with 100% Errorless Answers.
The ABC Banking Corporation owns a controlling interest in the stock of the ABC Bank, the
ABC Mortgage Company, and the ABC Trust Company. Which of the following terms most
likely describes the ABC Banking Corporation? correct answers bank holding company
-A holding company is a corporation that seeks control through a sizeable stake in the ownership
of the voting stock of another company or companies. This gives it control over management,
generally by having seats on the board of directors. The most common holding company on the
exam is the bank holding company, where the companies owned are banks or bank-related
businesses such as mortgage companies.
Listed securities trade on ... while unlisted securities trade ... correct answers exchange, OTC
the state securities Administrator takes responsibility for the enforcement and administration of a
state's securities law correct answers true
the Uniform Securities Act is a template rather than the actual law of any state or territory of the
United States. correct answers true
A broker-dealer would most likely hire an agent to correct answers sell securities to clients
As found in the Uniform Securities Act, which of the following would not be an issuer?
A)
A finance company offering promissory notes
B)
A metal refinery whose stock is traded in the OTC market
C)
A person who has proposed to issue a security but has not yet issued it
D)
A smelter producing gold bullion for sale to investors correct answers D
-Has to be securities
As defined in the Uniform Securities Act, every contract of sale of, contract to sell, or disposition
of, a security or interest in a security for value is correct answers a sale
An investment adviser registered with the state who maintains custody of customer funds and
securities is generally required to provide the Administrator with a surety bond in the minimum
amount of $35,000. The bond provides protection to advisory clients when correct answers the
investment adviser or one of its representatives converts customer funds for personal use
Solicitors are correct answers persons who refer business to investment advisers.
Natural persons who wish to meet the qualified purchaser definition must have not less than
correct answers 5 million in investments
,The term used by the Uniform Securities Act to describe a person applying for registration as a
securities professional is correct answers registrant
Any person who merely buys or sells securities would be correct answers an investor
-must be in the business of buying and selling for own account or account of others to be a bd
institution correct answers Included in the definition of institution is an employee benefit plan,
such as a pension or profit-sharing plan, with assets of at least $1 million. No individual,
regardless of wealth or sophistication, is defined as an institution by the USA. We would need to
know more about the NYSE-listed company before we could label it an institution.
Buying and selling is for a ... while doing it for advice is for a ... correct answers broker dealer,
investment advisor
FINRA is an correct answers SRO
Who receives the proceeds from a nonissuer transaction of a bond? correct answers the seller
A nonissuer transaction is one where the proceeds from the sale correct answers do not go to the
issuer
An individual eligible under federal law to purchase securities sold in a private placement is
called correct answers accredited investor
Disclosure of any charge, arrest, or conviction of, or guilty plea to, any felony is required correct
answers The Form U4 asks, "Have you ever . . . ," so there is no time limit. If Janice had been
found guilty of the felony charge, then it could lead to a statutory disqualification, but that is
generally limited to the most recent 10 years.
Compensation based on sales activity may be paid only to correct answers registered
a bonus based on the broker-dealers profits for the year may be paid to correct answers an
employee
Registration of a broker-dealer automatically constitutes registration of any agent who is correct
answers a partner, officer, or director, or a person occupying a similar status or performing
similar functions
Defalcator Dependable Brokers (DDB) has changed its business structure from a general
partnership to a corporation. Notification of this change correct answers must be submitted to the
Administrator promptly.
As defined in the Uniform Securities Act, broker-dealer does not include a person who has no
place of business in this state if he effects transactions in this state exclusively with or through
the issuers of the securities involved in the transactions correct answers other BDs; or banks,
savings institutions, trust companies, insurance companies, investment companies as defined in
,the Investment Company Act of 1940, employee benefit plans with assets of at least $1 million,
or other financial institutions or institutional buyers.
The Uniform Securities Act would not consider which of the following to be broker-dealers?
A)
Persons in the business of underwriting new securities issues
B)
Persons in the business of buying or selling securities on behalf of others
C)
Individual investors actively trading their own accounts
D)
Persons in the business of buying or selling securities for their own account correct answers C
rare for a BD to be a correct answers sole proprietorship
Main Street Investors (MSI) is a broker-dealer registered in State T. It has no offices in State O,
although it does do business in that state. Under the Uniform Securities Act, registration in State
O is required if the client is
A)
a bank.
B)
a mutual fund.
C)
employed by an insurance company.
D)
an issuer whose securities are involved in the transactions. correct answers C
Which of the following meets the definition of broker-dealer? correct answers A)
A bank
B)
A savings and loan association
C) THIS ONE
A person who is in the business of effecting securities transactions for the accounts of others
D)
A trust company
also not an issuer
Under the Uniform Securities Act, which of the following statements regarding the business
structure of a broker-dealer are true?
It can be a sole proprietorship.
It can be a corporation.
It can be a stock exchange.
It can be a partnership. correct answers 1,2,4
The Uniform Securities Act provides several exclusions from the definition of broker-dealer.
Those include all of the following except correct answers excluded : if its not a security
, A broker-dealer registered in State X has several clients in State Y. If the firm does not have a
place of business in State Y, registration in State Y would be required if one of those clients is
A)
an investment adviser registered in State Y.
B)
a registered investment company.
C)
a bank authorized to do business in State Y.
D)
a broker-dealer registered in State Y. correct answers A
Creative Financial Solutions (CFS) is a broker-dealer registered with the SEC. CFS has its
principal and only office in State A. CFS also does business with clients domiciled in State B.
Which of these clients would cause CFS to have to register in State B?
A)
6 banks authorized to do business in State B
B)
4 retail clients residing in State B
C)
1 mutual fund registered with the SEC
D)
15 other broker-dealers correct answers B
A broker-dealer with no place of business in State N receives an order from an existing customer
who is visiting her family in that state. Should the customer decide to take up permanent
residence in State N, and the firm wish to maintain the customer relationship, registration as a
broker-dealer with the State N Administrator would be required correct answers within 30 days
the firm's website provides a list of recommendations based on general criteria such as income or
growth. correct answers broker dealer registers
agent excluded correct answers Provided Sarah does not solicit business, offer advice to
customers, or accept orders
The SEC's Customer Protection Rule is found in correct answers the Securities Exchange Act of
1934.
Under industry regulations, when may an agent be given discretionary power to buy or sell
securities for a client? correct answers when authority is given in a written document
An investment adviser maintains custody of customer's funds and securities. In order to comply
with the Uniform Securities Act, the adviser must, at least quarterly, send written notice to each
custodial client stating
the location of the assets under custody.
the changes to the location of the assets under custody.
