SERIES 63 QUESTIONS WITH CORRECT
ANSWERS
____________ partnership interests are not typically considered securities. - ✔✔General
___________ partnership interest in an oil, gas, or mining endeavor would fall within the
Uniform Securities Act definition of "security". - ✔✔Limited
Limited partnership interests are not always considered securities, but the USA specifically
includes _____, ______, and _________ endeavors as securities. - ✔✔oil, gas, mining
A ___________ Gift is a gift where the person who receives the "gift" has to do something to get
it, and it is therefore_____ a true or bona fide gift. These are considered to be a sell or ________.
- ✔✔purported, not, sale
Futures contracts are ____ securities under the USA. - ✔✔not
According to the USA, any individual who __________ investment advisory services or
provides investment advisory services must be registered as an investment advisory
representative. - ✔✔solicits
Agent is defined as any person who represents a broker-dealer or _______ in effecting or
attempting to effect purchases or sales of securities. - ✔✔issuer
The USA's definition of ______________ states that a _____________ is any person in the
business of effecting transactions in securities for the accounts of others or for its own account. -
✔✔broker dealer
Insurance securities and federal savings and loan associations do not allow the individual to
qualify for the exemption from the definition of ________. Exclusions in the definition of
_________ would include US Government securities, Municipal securities, Canadian
Government securities, banks, and promissory notes and investment contracts. - ✔✔agent
,T/F? Bonds issued in a Regulation D Private Placement would fall under the classification of a
covered security under the Securities Act of 1933. - ✔✔T
Any bona fide pledge or loan is ____ considered to be a sell or sale. - ✔✔not
Investment advisers that manage portfolios with assets under management (AUM) of at least
$_____ million MUST register with the SEC. - ✔✔110
Exclusions from the definition of broker dealer include an issuer, ________ for the broker dealer,
and an _______ for an issuer. - ✔✔agent
T/F? Negotiations for a merger is an offer or a sale. - ✔✔F
T/F? A gift of securities of stock subject to future assessments and the receipt of rights to buy
another security would both be considered a sale under the USA? - ✔✔T
With regard to a security becoming registered using the Qualification method, a registration must
be filed with the _________, distribution of a prospectus to each offeree before the sale of a
security may be required by the Administrator, and such registration becomes __________ when
the Administrator so orders. - ✔✔state, effective
When an agent offers to sell a security to a client, the agent must be registered where the offer
______________ as well as where the offer is directed. When it comes to enforcement, an
Administrator generally can be considered to have ______________ when an offer originates or
is directed to their state. - ✔✔originates, jurisdiction
A syndicate member offering securities to the public on behalf of an issuer is _____ an exempt
transaction. - ✔✔not
Under the USA, registrations expire every December ____, unless renewed. - ✔✔31
, T/F? Under the USA, in the registration of a successor firm a filing fee is required with the
application. - ✔✔F
Limited partnerships may have to register at the state level since they are not _________. -
✔✔exempted
in order for a new issue to become registered, the company will pay filing fees, a Consent to
Service or Process signed by the issuer. The Company must also let the Admin know the
________ of securities being offered to the public. - ✔✔amount
T/F? A security issued by a company to the members of the public of a given state would not
qualify for an exemption and must therefore be registered with the Administrator under the USA.
- ✔✔T
Any security for which a registration statement has been filed with the SEC under the Securities
Act of 1933 may be registered concurrently in a State via _____________. - ✔✔coordination
The sale of US government securities by a registered government securities dealer is not
included in the USA's list of exempt "______________", it is an "exempt security". -
✔✔transactions
T/F? A person who has passed the Uniform Agent State Law Exam and filed an application for
registration in a state may open new accounts but not trade securities. - ✔✔F
According to the Uniform Securities Act, a person does not have to register as an Investment
Adviser if their only clients are broker-dealers and insurance companies, or if during any 12
month period, they do not direct communications to more than ___ clients in that state. - ✔✔5
_______________ is acceptable when Pre-organization Subscriptions are offered. Additionally,
under the USA, requirements for a preorganization subscription to be an exempt transaction are:
there may be no more than ____ subscribers, no commission may be paid to anyone for soliciting
potential subscribers, and no payment may be made by any subscriber. - ✔✔advertising, 10
ANSWERS
____________ partnership interests are not typically considered securities. - ✔✔General
___________ partnership interest in an oil, gas, or mining endeavor would fall within the
Uniform Securities Act definition of "security". - ✔✔Limited
Limited partnership interests are not always considered securities, but the USA specifically
includes _____, ______, and _________ endeavors as securities. - ✔✔oil, gas, mining
A ___________ Gift is a gift where the person who receives the "gift" has to do something to get
it, and it is therefore_____ a true or bona fide gift. These are considered to be a sell or ________.
- ✔✔purported, not, sale
Futures contracts are ____ securities under the USA. - ✔✔not
According to the USA, any individual who __________ investment advisory services or
provides investment advisory services must be registered as an investment advisory
representative. - ✔✔solicits
Agent is defined as any person who represents a broker-dealer or _______ in effecting or
attempting to effect purchases or sales of securities. - ✔✔issuer
The USA's definition of ______________ states that a _____________ is any person in the
business of effecting transactions in securities for the accounts of others or for its own account. -
✔✔broker dealer
Insurance securities and federal savings and loan associations do not allow the individual to
qualify for the exemption from the definition of ________. Exclusions in the definition of
_________ would include US Government securities, Municipal securities, Canadian
Government securities, banks, and promissory notes and investment contracts. - ✔✔agent
,T/F? Bonds issued in a Regulation D Private Placement would fall under the classification of a
covered security under the Securities Act of 1933. - ✔✔T
Any bona fide pledge or loan is ____ considered to be a sell or sale. - ✔✔not
Investment advisers that manage portfolios with assets under management (AUM) of at least
$_____ million MUST register with the SEC. - ✔✔110
Exclusions from the definition of broker dealer include an issuer, ________ for the broker dealer,
and an _______ for an issuer. - ✔✔agent
T/F? Negotiations for a merger is an offer or a sale. - ✔✔F
T/F? A gift of securities of stock subject to future assessments and the receipt of rights to buy
another security would both be considered a sale under the USA? - ✔✔T
With regard to a security becoming registered using the Qualification method, a registration must
be filed with the _________, distribution of a prospectus to each offeree before the sale of a
security may be required by the Administrator, and such registration becomes __________ when
the Administrator so orders. - ✔✔state, effective
When an agent offers to sell a security to a client, the agent must be registered where the offer
______________ as well as where the offer is directed. When it comes to enforcement, an
Administrator generally can be considered to have ______________ when an offer originates or
is directed to their state. - ✔✔originates, jurisdiction
A syndicate member offering securities to the public on behalf of an issuer is _____ an exempt
transaction. - ✔✔not
Under the USA, registrations expire every December ____, unless renewed. - ✔✔31
, T/F? Under the USA, in the registration of a successor firm a filing fee is required with the
application. - ✔✔F
Limited partnerships may have to register at the state level since they are not _________. -
✔✔exempted
in order for a new issue to become registered, the company will pay filing fees, a Consent to
Service or Process signed by the issuer. The Company must also let the Admin know the
________ of securities being offered to the public. - ✔✔amount
T/F? A security issued by a company to the members of the public of a given state would not
qualify for an exemption and must therefore be registered with the Administrator under the USA.
- ✔✔T
Any security for which a registration statement has been filed with the SEC under the Securities
Act of 1933 may be registered concurrently in a State via _____________. - ✔✔coordination
The sale of US government securities by a registered government securities dealer is not
included in the USA's list of exempt "______________", it is an "exempt security". -
✔✔transactions
T/F? A person who has passed the Uniform Agent State Law Exam and filed an application for
registration in a state may open new accounts but not trade securities. - ✔✔F
According to the Uniform Securities Act, a person does not have to register as an Investment
Adviser if their only clients are broker-dealers and insurance companies, or if during any 12
month period, they do not direct communications to more than ___ clients in that state. - ✔✔5
_______________ is acceptable when Pre-organization Subscriptions are offered. Additionally,
under the USA, requirements for a preorganization subscription to be an exempt transaction are:
there may be no more than ____ subscribers, no commission may be paid to anyone for soliciting
potential subscribers, and no payment may be made by any subscriber. - ✔✔advertising, 10
