Series 63 STC Questions with 100% Correct
Answers
The Consent to Service of Process Correct Answer:
document that must be filed with the state Administrator
for registration of all broker-dealers, investment advisers,
agents, and investment adviser representatives
he Consent to Service of Process Correct Answer:
appoints the state Administrator to serve as the
applicant's attorney for the purpose of receiving and
processing noncriminal complaints. It is required of all
registrants when they file for registration in a state
Insider traders face SEC civil penalties of up to three
times the amount gained or loss avoided called Correct
Answer: Treble damages
Criminal penalties for individuals of insider trading can
be as much as a ___ fine and ___ years in prison Correct
Answer: $5,000,000 fine and 20 years in prison
private individuals who believe their investments were
harmed by the actions of an insider trader may file a ___
____ to recover damages. Correct Answer: civil lawsuit
,FINRA fines may be assessed only against _________.
Correct Answer: FINRA members and their associated
persons.
___________ can be held civilly or criminally liable for
insider trading. Correct Answer: Anyone
FINRA ___ ____ take action against someone who is not
a FINRA member. Correct Answer: may NOT
A no-load mutual fund ___ ___ have any front-end sales
charges (loads) or any contingent deferred sales
charges (back-end loads). Correct Answer: may NOT
A no-load mutual fund Correct Answer: may have a
12b-1 fee as long as this fee does not total more than
.25% of the fund's average annual net as
Decisions settled by arbitration are ____ upon all parties
to the arbitration. Correct Answer: binding
The parties must agree to accept the findings of the
arbitration panel _____ submitting to arbitration Correct
Answer: before
,All advertising and sales-related materials created by
broker-dealers and investment advisers must be filed
with the Administrator. Correct Answer: If the security or
the transaction is exempt under the Act or is a federal
covered security, the materials do not need to be filed
with the Administrator. Any transaction with an
institutional investor is an exempt transaction. A security
issued by a common carrier is an exempt security. As a
reminder, a common carrier is an entity that moves
people or products between states, and is regulated by
the Interstate Commerce Commission, for example,
freight companies, railroads, and airlines. According to
the NASAA Model Rules, securities listed on the Toronto
Exchange, and the TSX Venture Exchange (Canada)
are exempt. Securities listed on other foreign exchanges
are not exempt automatically.
The licenses of all agent, broker-dealer, investment
adviser, and investment adviser representatives expire
on December 31 each year and must be renewed in
order to be effective. Renewal is accomplished by the
payment of a filing fee. Correct Answer: on December
31 each year
, The licenses of all agent, broker-dealer, investment
adviser, and investment adviser representatives must be
renewed by payment of a ______ ____. Correct Answer:
filing fee.
Conflicts of interest includes a scenario where the
investment adviser (or any of its employees) is receiving
Correct Answer: compensation (a rebate) for the
execution of client transactions
The Administrator may require the filing of sales literature
and advertising for _______securities. Correct Answer:
nonexempt
Ads concerning exempt securities (such as Treasuries)
ARE or NOT subject to the filing requirements under the
USA? Correct Answer: NOT SUBJECT
Individual correspondence is ___subject to filing with the
Administrator Correct Answer: NOT
Form letters and group e-mails that are considered
_________ Correct Answer: Sales Literature
Answers
The Consent to Service of Process Correct Answer:
document that must be filed with the state Administrator
for registration of all broker-dealers, investment advisers,
agents, and investment adviser representatives
he Consent to Service of Process Correct Answer:
appoints the state Administrator to serve as the
applicant's attorney for the purpose of receiving and
processing noncriminal complaints. It is required of all
registrants when they file for registration in a state
Insider traders face SEC civil penalties of up to three
times the amount gained or loss avoided called Correct
Answer: Treble damages
Criminal penalties for individuals of insider trading can
be as much as a ___ fine and ___ years in prison Correct
Answer: $5,000,000 fine and 20 years in prison
private individuals who believe their investments were
harmed by the actions of an insider trader may file a ___
____ to recover damages. Correct Answer: civil lawsuit
,FINRA fines may be assessed only against _________.
Correct Answer: FINRA members and their associated
persons.
___________ can be held civilly or criminally liable for
insider trading. Correct Answer: Anyone
FINRA ___ ____ take action against someone who is not
a FINRA member. Correct Answer: may NOT
A no-load mutual fund ___ ___ have any front-end sales
charges (loads) or any contingent deferred sales
charges (back-end loads). Correct Answer: may NOT
A no-load mutual fund Correct Answer: may have a
12b-1 fee as long as this fee does not total more than
.25% of the fund's average annual net as
Decisions settled by arbitration are ____ upon all parties
to the arbitration. Correct Answer: binding
The parties must agree to accept the findings of the
arbitration panel _____ submitting to arbitration Correct
Answer: before
,All advertising and sales-related materials created by
broker-dealers and investment advisers must be filed
with the Administrator. Correct Answer: If the security or
the transaction is exempt under the Act or is a federal
covered security, the materials do not need to be filed
with the Administrator. Any transaction with an
institutional investor is an exempt transaction. A security
issued by a common carrier is an exempt security. As a
reminder, a common carrier is an entity that moves
people or products between states, and is regulated by
the Interstate Commerce Commission, for example,
freight companies, railroads, and airlines. According to
the NASAA Model Rules, securities listed on the Toronto
Exchange, and the TSX Venture Exchange (Canada)
are exempt. Securities listed on other foreign exchanges
are not exempt automatically.
The licenses of all agent, broker-dealer, investment
adviser, and investment adviser representatives expire
on December 31 each year and must be renewed in
order to be effective. Renewal is accomplished by the
payment of a filing fee. Correct Answer: on December
31 each year
, The licenses of all agent, broker-dealer, investment
adviser, and investment adviser representatives must be
renewed by payment of a ______ ____. Correct Answer:
filing fee.
Conflicts of interest includes a scenario where the
investment adviser (or any of its employees) is receiving
Correct Answer: compensation (a rebate) for the
execution of client transactions
The Administrator may require the filing of sales literature
and advertising for _______securities. Correct Answer:
nonexempt
Ads concerning exempt securities (such as Treasuries)
ARE or NOT subject to the filing requirements under the
USA? Correct Answer: NOT SUBJECT
Individual correspondence is ___subject to filing with the
Administrator Correct Answer: NOT
Form letters and group e-mails that are considered
_________ Correct Answer: Sales Literature
