Series 63 Practice Test Questions with Correct
Answers
Registration by Coordination Correct Answer-The most common form
of registration for securities that are not federal covered. Coordination is
concurrent registration with the SEC and the state for public offerings.
Commingling of customer and firm assets Correct Answer-When
maintaining custody of customer securities, broker-dealers must keep
them segregated from the firm's holdings and may not make use of them.
There is an exception if these are securities pledged as collateral in a
margin account, but, unless the question specified that (and it probably
won't on your exam), assume these are fully paid for.
No place of business registration will not be required to register if one of
its clients was ? Correct Answer-1. Other BD
2. Bank
3. Savings Institution
4. Trust Companies
5. Insurance Companies
6. Investment Companies
7. Employee benefit plans with assets of at least $1mm
Examining of books requires how much notice from an admin? Correct
Answer-none
, It is unlawful to offer or sell any security in a state unless: Correct
Answer-1. it is registered
2. is exempt
3. is a federal covered security
What falls under the USA's anti-fraud provision apply to what and what
only. Correct Answer-All securities
Agency Cross Transaction acts as agent for both parties and ? Correct
Answer-1. An advisory client must provide prior written consent
2. Adviser must make written disclosure to the advisory client that it will
broker dealer for, have potential conflicts of interest
4. May collect commissions from both parties
In an agency cross transaction, an agent may not do? Correct Answer-
May not recommend the transaction to both parties
An exempt security is only exempt from the registration requirements,
not ? Correct Answer-1. Anti-fraud provisions and
2. Civil liability
Executing a transaction on behalf of a customer without authorization to
do so. Unless discretionary authorization has been received means?
Correct Answer-broker dealers and their agents may never enter an order
for a client on their own volition, even when it is in the best interest of
the client
Answers
Registration by Coordination Correct Answer-The most common form
of registration for securities that are not federal covered. Coordination is
concurrent registration with the SEC and the state for public offerings.
Commingling of customer and firm assets Correct Answer-When
maintaining custody of customer securities, broker-dealers must keep
them segregated from the firm's holdings and may not make use of them.
There is an exception if these are securities pledged as collateral in a
margin account, but, unless the question specified that (and it probably
won't on your exam), assume these are fully paid for.
No place of business registration will not be required to register if one of
its clients was ? Correct Answer-1. Other BD
2. Bank
3. Savings Institution
4. Trust Companies
5. Insurance Companies
6. Investment Companies
7. Employee benefit plans with assets of at least $1mm
Examining of books requires how much notice from an admin? Correct
Answer-none
, It is unlawful to offer or sell any security in a state unless: Correct
Answer-1. it is registered
2. is exempt
3. is a federal covered security
What falls under the USA's anti-fraud provision apply to what and what
only. Correct Answer-All securities
Agency Cross Transaction acts as agent for both parties and ? Correct
Answer-1. An advisory client must provide prior written consent
2. Adviser must make written disclosure to the advisory client that it will
broker dealer for, have potential conflicts of interest
4. May collect commissions from both parties
In an agency cross transaction, an agent may not do? Correct Answer-
May not recommend the transaction to both parties
An exempt security is only exempt from the registration requirements,
not ? Correct Answer-1. Anti-fraud provisions and
2. Civil liability
Executing a transaction on behalf of a customer without authorization to
do so. Unless discretionary authorization has been received means?
Correct Answer-broker dealers and their agents may never enter an order
for a client on their own volition, even when it is in the best interest of
the client
