Series 63 STC Progress Exam 1 Questions with
100% Correct Answers
Which of the following would be considered a
prohibited business practice?
Giving a quote for a security that is not the current
market price
Soliciting orders for unregistered nonexempt securities
Creating transactions that give a misleading
appearance of active trading in a security
All of the above Correct Answer: All of the above
A broker-dealer is conducting business on the premises
of a retail bank. According to the NASAA Model Rules
for Sales of Securities at Financial Institutions, all of the
following statements are TRUE, EXCEPT:
,The area where the broker-dealer provides its services
should be physically integrated with the area where
retail deposits are accepted, whenever possible
Customers who open securities accounts must receive
written and oral disclosure that these products are not
FDIC-insured, are not guaranteed by the bank, and may
lose value
The Administrator's representatives must have access to
the premises to inspect the books and records
maintained by the broker-dealer to the extent allowed
by state law
All confirmations and statements must indicate clearly
that the broker-dealer is providing these services Correct
Answer: The area where the broker-dealer provides its
services should be physically integrated with the area
where retail deposits are accepted, whenever possible
,Which of the following investors may be charged
performance fees by investment advisers?
An individual with a net worth of $1 million
An individual with $3 million in assets under
management with the adviser
A client who is approved for trading options
None, since investment advisers are prohibited from
charging performance fees Correct Answer: An
individual with $3 million in assets under management
with the adviser
The term agent includes a person who represents an
issuer in transactions involving:
Exchange-listed securities
Investment company shares
, Foreign stock
Qualified purchasers Correct Answer: Foreign stock
An issuer is going to sell a federal covered security in
State A. The Administrator of State A may ask the issuer
to do all of the following, EXCEPT:
File a Consent to Service of Process
Provide copies of all documents filed with the SEC
Furnish additional information that was not required by
the SEC
Pay a filing fee Correct Answer: Furnish additional
information that was not required by the SEC
Which of the following statements about the books and
records that broker-dealers are required to make and
retain is NOT TRUE?
100% Correct Answers
Which of the following would be considered a
prohibited business practice?
Giving a quote for a security that is not the current
market price
Soliciting orders for unregistered nonexempt securities
Creating transactions that give a misleading
appearance of active trading in a security
All of the above Correct Answer: All of the above
A broker-dealer is conducting business on the premises
of a retail bank. According to the NASAA Model Rules
for Sales of Securities at Financial Institutions, all of the
following statements are TRUE, EXCEPT:
,The area where the broker-dealer provides its services
should be physically integrated with the area where
retail deposits are accepted, whenever possible
Customers who open securities accounts must receive
written and oral disclosure that these products are not
FDIC-insured, are not guaranteed by the bank, and may
lose value
The Administrator's representatives must have access to
the premises to inspect the books and records
maintained by the broker-dealer to the extent allowed
by state law
All confirmations and statements must indicate clearly
that the broker-dealer is providing these services Correct
Answer: The area where the broker-dealer provides its
services should be physically integrated with the area
where retail deposits are accepted, whenever possible
,Which of the following investors may be charged
performance fees by investment advisers?
An individual with a net worth of $1 million
An individual with $3 million in assets under
management with the adviser
A client who is approved for trading options
None, since investment advisers are prohibited from
charging performance fees Correct Answer: An
individual with $3 million in assets under management
with the adviser
The term agent includes a person who represents an
issuer in transactions involving:
Exchange-listed securities
Investment company shares
, Foreign stock
Qualified purchasers Correct Answer: Foreign stock
An issuer is going to sell a federal covered security in
State A. The Administrator of State A may ask the issuer
to do all of the following, EXCEPT:
File a Consent to Service of Process
Provide copies of all documents filed with the SEC
Furnish additional information that was not required by
the SEC
Pay a filing fee Correct Answer: Furnish additional
information that was not required by the SEC
Which of the following statements about the books and
records that broker-dealers are required to make and
retain is NOT TRUE?
