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Series 63 Exam (STC) Final Exams questions and answers
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Series 63 Exam (STC) Final Exams questions and answers
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Series 63 Exam (STC) | FinalExams questions and answers
Which of the following statements is TRUE concerning the posting of
bonds by a broker-dealer?
A. There is no bond requirement if the broker-dealer does not have
custody or discretionary authority
B. There is no bond requirement if the broker-dealer is registered in
another state
C. The bond may be waived if the broker-dealer has been in
business for at least 10 years
D. The Administrator may not waive the bond requirement for any
broker-dealer
A. There is no bond requirement if the broker-dealer does not have
custody or discretionary authority
Not every broker-dealer maintains custody of client assets. Some,
for example, employ clearing firms to take care of this
responsibility.
The Administrator may require broker-dealers to post bonds if they
have custody of, or discretionary authority over, client funds or
securities.
The bond is waived if the broker-dealer's net capital exceeds a
specified amount. The Administrator may determine this amount.
(75577)
A company is conducting an IPO. Its shares will be listed on Nasdaq.
For how long does a broker-dealer that is part of the selling group
need to make the prospectus available to investors?
A. 25 days
B. 10 days
C. 90 days
D. 40 days
,A. 25 days
All investors who purchase new issues must receive prospectuses,
which may be made available electronically. This obligation to
provide a prospectus continues for 25 days after the effective date
for securities that will be listed on a national exchange or Nasdaq,
which is the situation described in the question.
A firm that sells a new issue in the aftermarket shortly after it
begins trading may also be required to give prospectuses to its
customers.
For secondary offerings of securities that will trade over-the-counter
(securities that are not eligible to be listed on Nasdaq or other
exchanges), this obligation lasts for 40 days.
It is 90 days if the offering is an IPO. (89653)
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Which of the following actions would violate the NASAA Statement
of Policy on Dishonest and Unethical Business Practices of Broker-
Dealers and Agents?
A. A broker-dealer states that it will charge extra for certain
transactions
B. An agent opens a joint account with a client with the written
permission of her employer
,C. An agent creates a marketing brochure for distribution to clients
that includes only the positive facts from the prospectus
D. A broker-dealer executes a transaction in a margin account
shortly before the client's signed margin account agreement arrives
in the mail
C. An agent creates a marketing brochure for distribution to clients
that includes only the positive facts from the prospectus
A marketing brochure that contained only the positive facts from
the prospectus and none of the negative ones (risk
factors) would be considered misleading and deceptive.
A broker-dealer may execute an initial transaction in a margin
account as long as a properly executed (signed) written margin
agreement is obtained promptly afterward.
A broker-dealer may charge a client a higher-than-normal
commission under certain circumstances, such as when a security is
particularly difficult to obtain, as long as this is disclosed to the
client.
An agent may open a joint account with a client as long as she has
the written permission of both the broker-dealer and the client.
(75690)
According to the Uniform Securities Act, which of the following
statements is/are NOT TRUE concerning a broker-dealer or
investment adviser filing an application for registration as a
successor firm?
I. The successor firm must be in existence prior to the filing of the
application for registration
II. The successor firm's registration will be effective for the
unexpired portion of the year
III. The successor firm must submit a filing fee with the application
for registration
A. III only
B. I and II only
C. I and III only
D. II only
C. I and III only
, When you encounter a question that is asking you to find a
statement that is NOT TRUE, the question is asking you to identify
the statement that is FALSE. Since this is a Roman Numeral style
question, it is possible that there are more than one FALSE
statement. In this question, there are two.
If a registered broker-dealer's or investment adviser's ownership
structure is changed (from a partnership to a corporation, for
example), or is bought or sold by another person, it is permitted to
file an application for registration as a successor firm.
According to the Act, this can be accomplished whether or not the
successor firm was in existence prior to the filing and is effective for
the unexpired portion of the year.
A filing fee is not required when the application is submitted.
(89545)
Under the USA, which of the following transactions would NOT be
considered exempt?
A. A transaction by an executor of an estate
B. An unsolicited issuer transaction effected through a registered
broker-dealer
C. A transaction by a trustee that is involved in a bankruptcy
proceeding
D. An offer to an investment company
B. An unsolicited issuer transaction effected through a registered
broker-dealer
Under the Uniform Securities Act, any offer to an investment
company or other institutional investor, a transaction by an
executor of an estate, or a trustee involved in a bankruptcy, would
be defined as an exempt transaction.
An unsolicited non-issuer transaction may qualify as an exempted
transaction. (62648)
According to the Uniform Securities Act, an entity can avoid meeting
the definition of a broker-dealer if it:
I. Has no office in the state
II. Only deals with institutional clients
III. Does not hold customer funds or securities
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