Series 63 Practice Exams With Correct A
A cbrokerage cfirm cexecutes can cexisting ccustomer's corder cby clocating ca ccontra-party cand ccharg
cfor cexecuting cthe ctrade. cIn cwhat ccapacity cwas cthe cfirm cacting? c- cCORRECT cANS✔✔Broker
since cit cwas crepresenting cits cclient cby clocating csomeone cwilling cto ctake cthe cother cside cof cthe
cbrokers cin ctrades cearn ca ccommission. c
If cthe cfirm chad ctraded cthe csecurity cfor cor cfrom cinventory cand cthere cwas ca cmarkup cor cmarkdo
cin cthe ccapacity cof ca cdealer.
A cbroker-dealer cregistered cin cGeorgia csells ca csecurity clisted con cNasdaq. cThe ctransaction ctake
cmarket cbetween ctwo cclients cwho care cGeorgia cresidents. cAccording cto cthe cUSA, cwhich cof cthe
cTRUE?
A. cThe cbroker-dealer cwould cbe crequired cto cregister cthe csecurity cin cGeorgia
B. cThe csecurity cis cnot crequired cto cbe cregistered cin cGeorgia
C. cThe cissuer cwould cbe crequired cto cregister cthe csecurity cin cGeorgia
D. cThe cAdministrator cin cGeorgia cmay cnot crequire cany cfiling cof cinformation cabout cthe cbroker-d
cANS✔✔B. cThe csecurity cis cnot crequired cto cbe cregistered cin cGeorgia
This cis can cexample cof can cexempt ctransaction csince cit cis cconsidered ca cnonissuer ctransaction c
, Which cof cthe cfollowing cstatements cis/are cTRUE cof cexempt csecurities cunder cthe cUniform cSecu
A. cIf cstate crules cregarding can cexemption care cmore crestrictive cthan cfederal crules, cthen cstate cru
B. cAny csecurity cexempt cunder cfederal cregulations cis calso cexempt cunder cthe cUniform cSecuritie
C. cAn cexempt csecurity cis cone cthat cis cnot csubject cto cthe cantifraud cprovisions cof cthe cUniform cS
D. cFederal cregulations calways csupersede cstate crules c- cCORRECT cANS✔✔A. cIf cstate crules cre
cmore crestrictive cthan cfederal crules, cthen cstate crules cwould cgovern
When cthe crules coverlap, cthe cmost crestrictive crule capplies. cA csecurity ccan cbe cexempt cunder cfe
cand cvice cversa. cNo csecurity cis cexempt cfrom cthe cantifraud cprovisions cof cthe cUSA.
Rule c147, calso cknown cas cIntrastate cOfferings, care cexempt cfrom: c- cCORRECT cANS✔✔federal
cregistration cmay cbe crequired.
ABC cAdvisers cis ca csmall cinvestment cadviser cwith c$19 cmillion cunder cmanagement. cThe cfirm cis
cmicro-cap cmutual cfund. cIn cthis ccase, cABC cmust cregister: c- cCORRECT cANS✔✔with cthe cSEC
One cimportant cexception cto cremember capplies cto cadvisers cto cregistered cinvestment ccompanie
cin cthis ccase). cThese cfirms cmust cbe cregistered cas cIAs cwith cthe cSEC c(as cfederal ccovered cadv
camount cof cassets cthey chave cunder cmanagement.
Which cof cthe cfollowing cchoices cis ca cbroker-dealer cin cState cB?
A. cAn cagent cin cState cA cwho ccontacts ca cclient cin cState cB
B. cA ccorporation cthat csells ccommercial cpaper cevery cother cweek cin cState cB
C. cA cbroker-dealer cregistered cin cState cA, cwhere cits conly coffice cis clocated, cwhich chas cthree cin
D. cA cbank ctrust cdepartment cthat cbuys cand csells csecurities cfor cits ccustomers c- cCORRECT cAN
cregistered cin cState cA, cwhere cits conly coffice cis clocated, cwhich chas cthree cindividual cclients cin cS
Agents, cissuers, cand cbanks care cnot cbroker-dealers. cAlso, ca cperson cwith cno cplace cof cbusiness
cwith cinstitutional cinvestors, cis cnot ca cbroker-dealer. cIf ca cfirm cdeals cwith cindividuals, cit cwould cb
ceven cif cit cdid cnot chave can coffice cin cthe cstate.
Under cthe cUPIA, ca ccustodian cis cpermitted cto cdelegate cinvestment cfunctions cto: c- cCORRECT c
cparty. c
Minors chave cno csay cin cthis cdecision.
Under cthe cUniform cSecurities cAct, can cemployee cof ca cmunicipal cissuer cselling csecurities cto cthe
cCORRECT cANS✔✔not can cagent
Mandy cis can cemployee cof cthe cIndiana cToll cAuthority. cHer cboss, ca chigh cranking cofficial cwith cth
chelp csell cthe cmunicipality's crevenue cbonds cto csome cinstitutional cclients cas cwell cas ca cfew creta
csituation cviewed cby cthe cUSA? c- cCORRECT cANS✔✔Mandy cdoes cnot cmeet cthe cdefinition cof ca
ccircumstances
Under cthe cUSA, can cagent cis cany cindividual c(other cthan ca cBD) cwho crepresents ca cBD cor cissue
ceffect cpurchases cor csales cof csecurities. cExcluded cfrom cthe cdefinition cis can cindividual cwho crep
ctransactions cin ccertain cexempt csecurities cor cwho crepresents can cissuer cin cexempt ctransactions
can cissuer cand cselling ca ccertain ctype cof cexempt csecurity c(securities cissued cby cmunicipalities),
cdefinition cof cagent cunder cany ccircumstances c(whether cselling cto cinstitutional cand/or cretail cinve
When cis can cIA crequired cto cprovide can caudited cannual cbalance csheet cto ctheir cclients? c(3) c- cC
chave ccustody cof cclient cassets
A cbrokerage cfirm cexecutes can cexisting ccustomer's corder cby clocating ca ccontra-party cand ccharg
cfor cexecuting cthe ctrade. cIn cwhat ccapacity cwas cthe cfirm cacting? c- cCORRECT cANS✔✔Broker
since cit cwas crepresenting cits cclient cby clocating csomeone cwilling cto ctake cthe cother cside cof cthe
cbrokers cin ctrades cearn ca ccommission. c
If cthe cfirm chad ctraded cthe csecurity cfor cor cfrom cinventory cand cthere cwas ca cmarkup cor cmarkdo
cin cthe ccapacity cof ca cdealer.
A cbroker-dealer cregistered cin cGeorgia csells ca csecurity clisted con cNasdaq. cThe ctransaction ctake
cmarket cbetween ctwo cclients cwho care cGeorgia cresidents. cAccording cto cthe cUSA, cwhich cof cthe
cTRUE?
A. cThe cbroker-dealer cwould cbe crequired cto cregister cthe csecurity cin cGeorgia
B. cThe csecurity cis cnot crequired cto cbe cregistered cin cGeorgia
C. cThe cissuer cwould cbe crequired cto cregister cthe csecurity cin cGeorgia
D. cThe cAdministrator cin cGeorgia cmay cnot crequire cany cfiling cof cinformation cabout cthe cbroker-d
cANS✔✔B. cThe csecurity cis cnot crequired cto cbe cregistered cin cGeorgia
This cis can cexample cof can cexempt ctransaction csince cit cis cconsidered ca cnonissuer ctransaction c
, Which cof cthe cfollowing cstatements cis/are cTRUE cof cexempt csecurities cunder cthe cUniform cSecu
A. cIf cstate crules cregarding can cexemption care cmore crestrictive cthan cfederal crules, cthen cstate cru
B. cAny csecurity cexempt cunder cfederal cregulations cis calso cexempt cunder cthe cUniform cSecuritie
C. cAn cexempt csecurity cis cone cthat cis cnot csubject cto cthe cantifraud cprovisions cof cthe cUniform cS
D. cFederal cregulations calways csupersede cstate crules c- cCORRECT cANS✔✔A. cIf cstate crules cre
cmore crestrictive cthan cfederal crules, cthen cstate crules cwould cgovern
When cthe crules coverlap, cthe cmost crestrictive crule capplies. cA csecurity ccan cbe cexempt cunder cfe
cand cvice cversa. cNo csecurity cis cexempt cfrom cthe cantifraud cprovisions cof cthe cUSA.
Rule c147, calso cknown cas cIntrastate cOfferings, care cexempt cfrom: c- cCORRECT cANS✔✔federal
cregistration cmay cbe crequired.
ABC cAdvisers cis ca csmall cinvestment cadviser cwith c$19 cmillion cunder cmanagement. cThe cfirm cis
cmicro-cap cmutual cfund. cIn cthis ccase, cABC cmust cregister: c- cCORRECT cANS✔✔with cthe cSEC
One cimportant cexception cto cremember capplies cto cadvisers cto cregistered cinvestment ccompanie
cin cthis ccase). cThese cfirms cmust cbe cregistered cas cIAs cwith cthe cSEC c(as cfederal ccovered cadv
camount cof cassets cthey chave cunder cmanagement.
Which cof cthe cfollowing cchoices cis ca cbroker-dealer cin cState cB?
A. cAn cagent cin cState cA cwho ccontacts ca cclient cin cState cB
B. cA ccorporation cthat csells ccommercial cpaper cevery cother cweek cin cState cB
C. cA cbroker-dealer cregistered cin cState cA, cwhere cits conly coffice cis clocated, cwhich chas cthree cin
D. cA cbank ctrust cdepartment cthat cbuys cand csells csecurities cfor cits ccustomers c- cCORRECT cAN
cregistered cin cState cA, cwhere cits conly coffice cis clocated, cwhich chas cthree cindividual cclients cin cS
Agents, cissuers, cand cbanks care cnot cbroker-dealers. cAlso, ca cperson cwith cno cplace cof cbusiness
cwith cinstitutional cinvestors, cis cnot ca cbroker-dealer. cIf ca cfirm cdeals cwith cindividuals, cit cwould cb
ceven cif cit cdid cnot chave can coffice cin cthe cstate.
Under cthe cUPIA, ca ccustodian cis cpermitted cto cdelegate cinvestment cfunctions cto: c- cCORRECT c
cparty. c
Minors chave cno csay cin cthis cdecision.
Under cthe cUniform cSecurities cAct, can cemployee cof ca cmunicipal cissuer cselling csecurities cto cthe
cCORRECT cANS✔✔not can cagent
Mandy cis can cemployee cof cthe cIndiana cToll cAuthority. cHer cboss, ca chigh cranking cofficial cwith cth
chelp csell cthe cmunicipality's crevenue cbonds cto csome cinstitutional cclients cas cwell cas ca cfew creta
csituation cviewed cby cthe cUSA? c- cCORRECT cANS✔✔Mandy cdoes cnot cmeet cthe cdefinition cof ca
ccircumstances
Under cthe cUSA, can cagent cis cany cindividual c(other cthan ca cBD) cwho crepresents ca cBD cor cissue
ceffect cpurchases cor csales cof csecurities. cExcluded cfrom cthe cdefinition cis can cindividual cwho crep
ctransactions cin ccertain cexempt csecurities cor cwho crepresents can cissuer cin cexempt ctransactions
can cissuer cand cselling ca ccertain ctype cof cexempt csecurity c(securities cissued cby cmunicipalities),
cdefinition cof cagent cunder cany ccircumstances c(whether cselling cto cinstitutional cand/or cretail cinve
When cis can cIA crequired cto cprovide can caudited cannual cbalance csheet cto ctheir cclients? c(3) c- cC
chave ccustody cof cclient cassets
