SERIES 63 EXAM STUDY
QUESTIONS WITH CORRECT
ANSWERS
agent
An individual who represents a broker/dealer or an issuer when selling or trying to sell
securities to the investing public. This individual is considered an _____ whether he or she
actually receives or simply solicits orders. Also known as "registered representatives."
Two types of agents
An individual who represents a broker dealer in effecting or attempting to effect securities
transactions (an entrepreneur selling stock in his own company to raise capital
An employee is not an agent
selling to non-resident customers(30 day limit)
selling to new residents (60 day limit)
Not an agent working as an issuers
Individuals who represent issuers of certain exempt securities ( US gov
Individuals who represent issuers in exempt transactions(CFO selling bonds to institutional
investors
Individuals representing issuers selling only to qualified purchasers or selling private placements
(under 33 act )
If you see a question about the issuer of a certificate of deposit, voting trust certificate or
collateral trust certificate, look for the terms
depositor or manager in the answer choices
,If you are asked who is the issuer of a certificate of interest or participation in oil, gas or
mining titles or leases
the answer is that there is no issuer
RR must file an application to register in the state in which a client is now a resident within
10 business days of the later of: a transaction with the client in the new state or the discovery by
the rr of the clients change in residence
Agent application
the applicants qualifications and business history
any injunctions or administrative orders involving
security any convictions for misdemeanors involving
securities any felony convictions
the applicants financial condition and history
issuer
According to the Uniform Securities Act, any person who issues or proposes to issue any
security. When a corporation or municipality raises additional capital through an offering of
securities, that corporation or municipality is the issuer of those securities. An issuer transaction
also is called a primary transaction.
historical performance
may be shown to investors as long as proper disclosure is provided indicating that it DOES
NOT predict future results.
New resident exception to apply
, The rr must not be ineligible to register in the new state, The rr must be registered with
a registered securities association and at least one state
The RRs broker dealer must be registered in the new state
If an agent leaves one broker dealer and becomes employed by another broker dealer
all three parties have to notify the administrator
In an agent terminates his employement with a broker dealer without going to a new dealer
both have to notify administrator
A minor is not considered a
person
broker/dealer
any person engaged in the business of effecting transactions in securities for the account
of others or for his own account.
Who is not a broker dealer
a bank, savings institution, or trust company, insurance companies
an issuer,
an agent
a person that has no place of business in the state and deals only with broker dealers, institutional
investors or the issue of the security involved in the transaction
Broker dealer info
QUESTIONS WITH CORRECT
ANSWERS
agent
An individual who represents a broker/dealer or an issuer when selling or trying to sell
securities to the investing public. This individual is considered an _____ whether he or she
actually receives or simply solicits orders. Also known as "registered representatives."
Two types of agents
An individual who represents a broker dealer in effecting or attempting to effect securities
transactions (an entrepreneur selling stock in his own company to raise capital
An employee is not an agent
selling to non-resident customers(30 day limit)
selling to new residents (60 day limit)
Not an agent working as an issuers
Individuals who represent issuers of certain exempt securities ( US gov
Individuals who represent issuers in exempt transactions(CFO selling bonds to institutional
investors
Individuals representing issuers selling only to qualified purchasers or selling private placements
(under 33 act )
If you see a question about the issuer of a certificate of deposit, voting trust certificate or
collateral trust certificate, look for the terms
depositor or manager in the answer choices
,If you are asked who is the issuer of a certificate of interest or participation in oil, gas or
mining titles or leases
the answer is that there is no issuer
RR must file an application to register in the state in which a client is now a resident within
10 business days of the later of: a transaction with the client in the new state or the discovery by
the rr of the clients change in residence
Agent application
the applicants qualifications and business history
any injunctions or administrative orders involving
security any convictions for misdemeanors involving
securities any felony convictions
the applicants financial condition and history
issuer
According to the Uniform Securities Act, any person who issues or proposes to issue any
security. When a corporation or municipality raises additional capital through an offering of
securities, that corporation or municipality is the issuer of those securities. An issuer transaction
also is called a primary transaction.
historical performance
may be shown to investors as long as proper disclosure is provided indicating that it DOES
NOT predict future results.
New resident exception to apply
, The rr must not be ineligible to register in the new state, The rr must be registered with
a registered securities association and at least one state
The RRs broker dealer must be registered in the new state
If an agent leaves one broker dealer and becomes employed by another broker dealer
all three parties have to notify the administrator
In an agent terminates his employement with a broker dealer without going to a new dealer
both have to notify administrator
A minor is not considered a
person
broker/dealer
any person engaged in the business of effecting transactions in securities for the account
of others or for his own account.
Who is not a broker dealer
a bank, savings institution, or trust company, insurance companies
an issuer,
an agent
a person that has no place of business in the state and deals only with broker dealers, institutional
investors or the issue of the security involved in the transaction
Broker dealer info
