Series 63 Questions with Correct Answers
agent Correct Answer-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 Correct Answer-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 Correct Answer-selling to non-resident
customers(30 day limit)
selling to new residents (60 day limit)
Not an agent working as an issuers Correct Answer-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 Correct
Answer-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 Correct Answer-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 Correct Answer-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 Correct Answer-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 Correct Answer-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 Correct Answer-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 Correct Answer-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 Correct Answer-all three parties have to notify the
administrator
In an agent terminates his employement with a broker dealer without
going to a new dealer Correct Answer-both have to notify administrator
A minor is not considered a Correct Answer-person
broker/dealer Correct Answer-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 Correct Answer-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
agent Correct Answer-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 Correct Answer-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 Correct Answer-selling to non-resident
customers(30 day limit)
selling to new residents (60 day limit)
Not an agent working as an issuers Correct Answer-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 Correct
Answer-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 Correct Answer-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 Correct Answer-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 Correct Answer-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 Correct Answer-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 Correct Answer-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 Correct Answer-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 Correct Answer-all three parties have to notify the
administrator
In an agent terminates his employement with a broker dealer without
going to a new dealer Correct Answer-both have to notify administrator
A minor is not considered a Correct Answer-person
broker/dealer Correct Answer-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 Correct Answer-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
