SERIES 63 TOP QUESTIONS WITH
CORRECT ANSWERS
State Registration laws: - ✔✔blue sky laws
Federal law enacted to eliminate duplicate regulations that required registrations at both the
Federal and State Level - ✔✔National Securities Markets Improvement Act of 1996
(NSMIA)
Under the Act 'persons' are considered to be human or nonhuman
EX) -individuals
-corporations
-partnerships
-business trusts
-estates
-trusts(where the interests of the beneficiaries of the trust are evidenced by a security)
-associations
-joint stock companies or joint ventures
-governments and political subdivisions of governments
-unincorporated organizations and any other legal or commercial entity - ✔✔DEFINITION
OF ISSUER--an 'issuer' is any person who issues or proposes to issue a security
-for securities where the structure is such that there is no BOD(Collateral Trusts, Voting Trusts,
CD's, UIT's) the issuer is the person performing the functions of manager or depositor under the
Trust agreement
Equipment Trust Certificates - ✔✔the issuers is the person to whom the equipment is to be
leased or conditionally sold (which is the corporation)
Oil and Gas Programs or Mining Titles/Leases - ✔✔there is considered not the be an issuers-
will be issued through Registration Qualification
, Issuer Transactions - ✔✔-when the 'issuer' redeems or sells securities
-the sale of the securities is for the benefit of the issuer-the issuer receives the proceeds from the
sale
-primary transaction
Non-issuer - ✔✔-simply a person who is not defined as an issuer under the Act
-purchasers
Non-issuer Transaction - ✔✔-proceeds from the sale of the securities go to someone other
than the issuer
-transaction that not directly or indirectly for the benefit of the issuer
Institutional Buyers - ✔✔-as long as broker-dealer or investment adviser does not have a
physical office in a State and
-only institutional buyers are solicited in the State then
-no registration is required in the State
Institutional Buyers Include: - ✔✔-Banks
-Savings and Loans
-Trust Companies
-Insurance Companies
-Investment Companies
-Pension and Profit Sharing Pans
-Anyone else so designated by the State Administrator
Broker-Dealer - ✔✔MUST register in the State under the Act unless exemption is available
Who is a Broker Dealer - ✔✔-engages in the business of effecting securities transactions for
the account of others
CORRECT ANSWERS
State Registration laws: - ✔✔blue sky laws
Federal law enacted to eliminate duplicate regulations that required registrations at both the
Federal and State Level - ✔✔National Securities Markets Improvement Act of 1996
(NSMIA)
Under the Act 'persons' are considered to be human or nonhuman
EX) -individuals
-corporations
-partnerships
-business trusts
-estates
-trusts(where the interests of the beneficiaries of the trust are evidenced by a security)
-associations
-joint stock companies or joint ventures
-governments and political subdivisions of governments
-unincorporated organizations and any other legal or commercial entity - ✔✔DEFINITION
OF ISSUER--an 'issuer' is any person who issues or proposes to issue a security
-for securities where the structure is such that there is no BOD(Collateral Trusts, Voting Trusts,
CD's, UIT's) the issuer is the person performing the functions of manager or depositor under the
Trust agreement
Equipment Trust Certificates - ✔✔the issuers is the person to whom the equipment is to be
leased or conditionally sold (which is the corporation)
Oil and Gas Programs or Mining Titles/Leases - ✔✔there is considered not the be an issuers-
will be issued through Registration Qualification
, Issuer Transactions - ✔✔-when the 'issuer' redeems or sells securities
-the sale of the securities is for the benefit of the issuer-the issuer receives the proceeds from the
sale
-primary transaction
Non-issuer - ✔✔-simply a person who is not defined as an issuer under the Act
-purchasers
Non-issuer Transaction - ✔✔-proceeds from the sale of the securities go to someone other
than the issuer
-transaction that not directly or indirectly for the benefit of the issuer
Institutional Buyers - ✔✔-as long as broker-dealer or investment adviser does not have a
physical office in a State and
-only institutional buyers are solicited in the State then
-no registration is required in the State
Institutional Buyers Include: - ✔✔-Banks
-Savings and Loans
-Trust Companies
-Insurance Companies
-Investment Companies
-Pension and Profit Sharing Pans
-Anyone else so designated by the State Administrator
Broker-Dealer - ✔✔MUST register in the State under the Act unless exemption is available
Who is a Broker Dealer - ✔✔-engages in the business of effecting securities transactions for
the account of others
