Series 63 Practice Exam Questions in the Uniform Securities State Law Examination Dumps (V8.02) – Continue to Read Series 63 Free Dumps (Part 2, Q41-Q80) Today

1. Under the Uniform Securities Act, which of the following does not need to be included when filing to register a security issue with the state?

2. Jack Bean is employed by Giant Investment Advisers, LLC. His job duties include advising clients on the asset allocations of their portfolios. Jack Bean is

3. Assuming there is not a stop order or a proceeding pending, under the registration by coordination process a security’s registration with the state becomes effective:

4. Jack is employed by NewCorp, which is engaging in an initial public offering (IPO). Jack will need to register as a sales representative if he:

5. Under the 2002 Uniform Securities Act, registration by coordination allows:

6. Which of the following entities are subject to post-registration provisions?

I. broker-dealers

II. agents

III. investment advisers

IV. investment adviser representatives

7. Blue Sky Laws are designed to:

8. Which of the following persons falls under the definition of “broker-dealer,” as defined by the Uniform Securities Act (USA)?

9. Which of the following orders can an Administrator issue without providing prior notice?

10. Ms. Ding is an administrative assistant to the manager of a mutual fund. Most of her day is spent entering data onto a spreadsheet for her boss and answering phone calls. Some of the calls require her to provide information about the some of the fund’s financial aspects, such as its closing net asset value on the previous day.

What type of registration does Ms. Ding require in order to perform her duties?

11. Mr. Bigwig, CEO of HiGrowth Corporation, meets with the president of BigFee Investment Bankers and arranges for BigFee to underwrite an Initial Public Offering (IPO) for the firm.

When the IPO comes to market, GetErDone Broker-Dealers is part of the selling group, which handles the sale of the stock to the public. In this scenario, which party is the issuer?

12. Which of the following securities would be exempt from state registration requirements, according to the Uniform Securities Act?

I. a municipal bond issued by the Canadian province of Nova Scotia

II. a bond issued by the county of Cork, Ireland

III. a bond issued by Nationwide Insurance Company

13. Ari Gaunt is employed by a small state-registered broker-dealer and has recently received notification that his application to be a registered agent of the state has been accepted. Now that he is licensed to execute transactions for the firm’s clients, Ari has a batch of business cards printed up, with a picture of himself on the right-hand side of the card. Underneath the picture is the caption, “State-Approved Agent.”

Will Ari be violating any securities laws if he distributes these business cards?

14. Which of the following constitutes a non-punitive order?

15. Ms. Muffet is employed by Spyder Broker-Dealers. Her job duties include providing price quotes and executing purchases and sales for the firm’s clients. She is paid a salary plus commission. Ms. Muffet is

16. Iggy recently started his own company. He soon discovered it required more cash to keep it going than he had anticipated. He ran an ad in the local paper for investors and got a response. He found a template for a promissory note on the internet, filled in the requisite information specific to the agreement he and the investor had worked out, and printed it out. On it, he promised to make monthly interest payments of 2% on the loan and to repay the principal amount at the end of 18 months. A few months after the arrangement, Iggy read an article in a small business publication that indicated that promissory notes had to be registered with the state unless they were sold in an exempt transaction, such as one enacted with a financial institution, prior to being offered for sale. The article indicated that a seller who had sold an unregistered note in error could remedy the situation by sending the buyer a formal offer to buy the security back, with interest. Iggy turned to the computer once again, found a form that could be used for a formal offer of rescission, filled it out, and sent it to the investor. Having done this,

17. Which of the following is not a security, as defined by the Uniform Securities Act?

I. an option contract

II. a futures contract on gold

III. a 401K plan

IV. a variable annuity

18. Individual states are prohibited from requiring a broker-dealer or investment adviser to file financial reports more frequently than:

19. In order to maintain its registration with a state, a broker-dealer may be required to:

I. take a written or oral exam.

II. pay an annual filing fee.

III. maintain a minimum net capital.

IV. file all advertising material with the Administrator.

20. Which of the following securities would not necessarily be exempt from state registration?

21. Moe is a registered investment adviser doing business under the name of MoeMoney Investment Advisers, LLC. Larry, Curly, and Mary all hold positions with the firm. Larry is on the board of directors; Mary is a sales representative for the firm; and Curly is an administrative assistant, who performs clerical duties.

Given that Moe is already a registered investment adviser, which of the other three are automatically registered as investment adviser representatives?

22. Broker-dealer Nebulous opted to withdraw its registration with the state. Six months later, the Administrator finds that Nebulous had been engaged in fraudulent securities transactions.

Which of the following statements is true?

23. Nancy’s Aunt Ethel died, making Nancy executrix of her estate. In going through Aunt Ethel’s belongings, Nancy discovered some stock certificates that she learned had been issued by a small New Jersey firm that was still in business. The problem lay in the fact that Nancy’s Aunt Ethel had moved from New Jersey to Florida years ago, and the stock is registered only in the state of New Jersey. Nancy herself is a resident of Massachusetts.

What does Nancy have to do in order to sell this stock?

24. Although an Administrator has broad powers, he or she cannot:

25. An investment adviser

I. provides investment advice to clients.

II. sells securities to clients.

III. buys and sells securities in their clients’ accounts for the clients.

26. Which of the following persons would not be required to register with the state as an agent under the guidelines of the Uniform Securities Act (USA)?

27. Barring no irregularities (such as a license revocation by another state last year), after you have filed for registration as an agent, your license will be granted within

28. Which of the following statements regarding “registration by qualification” is true?

29. Trevor is currently a registered agent in the state of Connecticut where he has been employed by Connect & Company, a broker-dealer that is registered in Connecticut and has subsidiary operations in Massachusetts, New Jersey, and New York. Trevor has moved to Massachusetts and is now associated with one of Connect’s subsidiaries, a broker-dealer registered in the state. Trevor has applied to the Administrator of Massachusetts for registration as an agent.

Can Trevor execute purchases and sales for clients while his registration is still pending?

30. An arrangement wherein a terminally ill person sells a second party his life insurance policy at a discount from its face value, giving the buyer the right to the policy’s face value when the seller dies is called a:

31. Rich Quick is a broker-dealer licensed in the state of Massachusetts and has offices only within the state. Two of Rich Quick’s clients regularly vacation in Florida during the winter months, and Rich Quick executes trades for them when they call him from out-of-state.

Based on these facts,

I. Rich Quick needs to register as a broker-dealer in the state of Florida as well.

II. Rich Quick needs to register only as an agent in the state of Florida.

III. Rich Quick needs to establish an office in the state of Florida in order to transact business. IV. Rich Quick need not register in Florida.

32. Which of the following would be considered an “issuer” transaction?

33. A “notice filing” refers to

34. Which of the following is not in itself a reason for the Administrator to deny, suspend, or revoke the license of a person?

35. Which of the following is not a method that can be used to register securities with the state?

36. Harry Lange manages the investment portfolio for the Fidelity Magellan Mutual Fund. Mr. Lange is a(n)

37. Broker-Dealer Wheeler has no offices in the state. Wheeler does, however, sell corporate bonds from his portfolio to banks and insurance companies located in the state that purchase the bonds for their investment portfolios. He executes about twelve of these transactions a year. Wheeler profits from the price appreciation of the bonds during the time he held them, but receives no other form of compensation. Based on these facts,

38. Which of the following statements about agents is (are) false?

39. Fly-By-Night Investment Advisers has closed its doors.

Which of the following statements is true?

40. Under the Uniform Securities Act (USA), which of the following statements would be disallowed?