Series 63 Final Exam 4 UPDATED
ACTUAL Exam Questions and CORRECT
Answers
A broker-dealer's original application filed with the state includes all of the following items,
EXCEPT: - CORRECT ANSWER - Fingerprints
A husband wishes to buy stock in his wife's account. Under the Uniform Securities Act, which of
the following statements is TRUE? - CORRECT ANSWER - The husband must have
written trading authorization for the account
An advisory fee that increases and decreases proportionately with the investment record of an
appropriate securities index is called a(n): - CORRECT ANSWER - Fulcrum fee
The Administrator of State P requests that the Administrator of State Q issue a cease-and-desist
order. May the Administrator of State Q grant this request? - CORRECT ANSWER - Only
if the Administrator of State Q believes that the laws of that state are being violated, or will be
violated
If a bank owns a broker-dealer subsidiary, what would its registration requirements be under the
USA? - CORRECT ANSWER - The subsidiary would need to register in any state in
which it planned to do business
According to the Uniform Securities Act, which of the following statements is NOT TRUE
concerning private placements? - CORRECT ANSWER - The offer may be made to 35 or
fewer persons in that state during any 12-month period
A client who does not have a discretionary account with a broker-dealer instructs her agent to
buy 200 shares of Microsoft when the price is right. Which of the following statements is
TRUE? - CORRECT ANSWER - The agent may accept this order
, According to the Uniform Securities Act, when a broker-dealer distributes bonds with warrants
attached as a bonus: - CORRECT ANSWER - This constitutes an offer to sell the bonds
and the warrants
Which of the following persons is required to register as a broker-dealer in State B? - CORRECT
ANSWER - A regional broker-dealer with offices in State A, C, D, and E only, and retail
clients who reside in State B
A registered investment adviser is normally required to post a surety bond to satisfy the Uniform
Securities Act requirements. Under which TWO of the following conditions could this
requirement be waived? - CORRECT ANSWER - I. The investment adviser does not
maintain custody of client assets
II. The investment adviser has a net worth of $50,000
An agent includes all of the following individuals, EXCEPT: - CORRECT ANSWER -A
person who represents an issuer in selling securities through exempt transactions
Bonds may be required of all of the following entities, EXCEPT: - CORRECT
ANSWER - Investment advisers who do not have discretionary authority or custody of
client funds or securities
Which of the following choices does not meet the definition of a security under the Uniform
Securities Act? - CORRECT ANSWER - Whole life insurance policies
Under the Uniform Securities Act, which of the following persons is a broker-dealer in State B? -
CORRECT ANSWER - A broker-dealer that is registered in State A, where its only office
is located, and has only three retail clients who are residents of State B
Which of the following activities is an exempt transaction according to the Uniform Securities
Act? - CORRECT ANSWER - An agent sells securities that are listed on the Toronto
Stock Exchange
ACTUAL Exam Questions and CORRECT
Answers
A broker-dealer's original application filed with the state includes all of the following items,
EXCEPT: - CORRECT ANSWER - Fingerprints
A husband wishes to buy stock in his wife's account. Under the Uniform Securities Act, which of
the following statements is TRUE? - CORRECT ANSWER - The husband must have
written trading authorization for the account
An advisory fee that increases and decreases proportionately with the investment record of an
appropriate securities index is called a(n): - CORRECT ANSWER - Fulcrum fee
The Administrator of State P requests that the Administrator of State Q issue a cease-and-desist
order. May the Administrator of State Q grant this request? - CORRECT ANSWER - Only
if the Administrator of State Q believes that the laws of that state are being violated, or will be
violated
If a bank owns a broker-dealer subsidiary, what would its registration requirements be under the
USA? - CORRECT ANSWER - The subsidiary would need to register in any state in
which it planned to do business
According to the Uniform Securities Act, which of the following statements is NOT TRUE
concerning private placements? - CORRECT ANSWER - The offer may be made to 35 or
fewer persons in that state during any 12-month period
A client who does not have a discretionary account with a broker-dealer instructs her agent to
buy 200 shares of Microsoft when the price is right. Which of the following statements is
TRUE? - CORRECT ANSWER - The agent may accept this order
, According to the Uniform Securities Act, when a broker-dealer distributes bonds with warrants
attached as a bonus: - CORRECT ANSWER - This constitutes an offer to sell the bonds
and the warrants
Which of the following persons is required to register as a broker-dealer in State B? - CORRECT
ANSWER - A regional broker-dealer with offices in State A, C, D, and E only, and retail
clients who reside in State B
A registered investment adviser is normally required to post a surety bond to satisfy the Uniform
Securities Act requirements. Under which TWO of the following conditions could this
requirement be waived? - CORRECT ANSWER - I. The investment adviser does not
maintain custody of client assets
II. The investment adviser has a net worth of $50,000
An agent includes all of the following individuals, EXCEPT: - CORRECT ANSWER -A
person who represents an issuer in selling securities through exempt transactions
Bonds may be required of all of the following entities, EXCEPT: - CORRECT
ANSWER - Investment advisers who do not have discretionary authority or custody of
client funds or securities
Which of the following choices does not meet the definition of a security under the Uniform
Securities Act? - CORRECT ANSWER - Whole life insurance policies
Under the Uniform Securities Act, which of the following persons is a broker-dealer in State B? -
CORRECT ANSWER - A broker-dealer that is registered in State A, where its only office
is located, and has only three retail clients who are residents of State B
Which of the following activities is an exempt transaction according to the Uniform Securities
Act? - CORRECT ANSWER - An agent sells securities that are listed on the Toronto
Stock Exchange
