Series 63 practice questions with Correct
Answers
Under Rule 147, securities sold within the borders of one state are
exempt from:
a) state registration
b) federal registration
c) state and federal registration
d) none of the above Correct Answer-b) federal registration
Rule 147, also known as Intrastate Offerings, are exempt from federal
registration. However, state registration may be required.
Which of the following securities is NOT nonexempt, under the uniform
securities act?
a) stock issued by a Canadian Corporation
b) Bigbux discount stores stock trading OTC
c) M & L Computer company stock that does not trade on an exchange
or Nasdaq
d) The city of Pasadena, California bond, sold by an agent at Walck and
Walker Broker Dealer Correct Answer-d) The city of Pasadena,
California bond, sold by an agent at Walck and Walker Broker Dealer
,This question is asking you to identify the type of securities that are
exempt from state registration. Securities issued by a U.S. municipality
are exempt, as are those securities issued by the government of Canada,
its municipalities, or the foreign governments of a country with which
the United States maintains diplomatic relations. Stock that trades over-
the-counter (OTC) does not qualify for the blue-chip exemption. This
exemption applies to securities listed on one of the national exchanges or
Nasdaq.
All of the following persons are defined in the Uniform Securities Act,
EXCEPT:
a) Issuer
b) Broker-dealer
c) Registered representative
d) Investment adviser representative Correct Answer-c) Registered
representative
The term registered representative is not defined in the Uniform
Securities Act, although it is used in federal law.
According to the National Securities Markets Improvement Act
(NSMIA), state Administrators are allowed to set:
a) Net capital requirements for issuers
b) Net capital requirements for agents of broker-dealers
,c) minimum financial requirements for investment adviser
representatives
d) Minimum financial requirements not to exceed those set by the SEC
Correct Answer-d) Minimum financial requirements not to exceed those
set by the SEC
Under NSMIA, state securities Administrators are not allowed to impose
requirements that are more stringent than SEC regulations
According to the NASAA Guidelines Regarding Viatical Investments,
purchasers of these securities should meet which of the following
financial standards?
a) A minimum of net worth of $250,000
b) A minimum net worth of $150,000 and an annual income of $100,000
c) The same requirements as accredited investor
d) All of the above Correct Answer-d) All of the above
According to the NASAA Guidelines Regarding Viatical Investments,
viaticals are suitable for the following individuals and entities.
Individuals who have a minimum net worth of $250,000 regardless of
income, choice (a)
Individuals who have a minimum net worth of $150,000 and an annual
income of at least $100,000, choice (b)
Any individual or organization meeting the standards for accredited
investors under Regulation D of the Securities Act of 1933, choice (c)
, The investor's home equity must be excluded from these net worth
calculations. Also, no more than 10% of an individual client s portfolio
may be invested in viaticals
The owner of a small group of comic book stores is planning a public
offering of securities. The owner will be involved in marketing the
shares to the public, but will not receive direct compensation from the
sales. According to the Uniform Securities Act, the owner must register:
a) As an investment adviser
b) As an investment adviser representative
c) As a broker dealer
d) The securities Correct Answer-d) The securities
The question states that the owner is conducting a public offering of
securities. All securities offerings must be registered unless they can
qualify for an exemption. There is nothing in the stem to indicate that
the offering qualifies for an exemption.
The owner is not in the business of providing investment advice for
compensation and does not need to register as an investment adviser or
an investment adviser representative. The owner also does not meet the
definition of a broker-dealer—he is not "in the business of effecting
securities transactions." The owner is an issuer and issuers are
specifically excluded from the definition of a broker-dealer.
A broker-dealer registered in Georgia sells a security listed on Nasdaq.
The transaction takes place in the secondary market between two clients
Answers
Under Rule 147, securities sold within the borders of one state are
exempt from:
a) state registration
b) federal registration
c) state and federal registration
d) none of the above Correct Answer-b) federal registration
Rule 147, also known as Intrastate Offerings, are exempt from federal
registration. However, state registration may be required.
Which of the following securities is NOT nonexempt, under the uniform
securities act?
a) stock issued by a Canadian Corporation
b) Bigbux discount stores stock trading OTC
c) M & L Computer company stock that does not trade on an exchange
or Nasdaq
d) The city of Pasadena, California bond, sold by an agent at Walck and
Walker Broker Dealer Correct Answer-d) The city of Pasadena,
California bond, sold by an agent at Walck and Walker Broker Dealer
,This question is asking you to identify the type of securities that are
exempt from state registration. Securities issued by a U.S. municipality
are exempt, as are those securities issued by the government of Canada,
its municipalities, or the foreign governments of a country with which
the United States maintains diplomatic relations. Stock that trades over-
the-counter (OTC) does not qualify for the blue-chip exemption. This
exemption applies to securities listed on one of the national exchanges or
Nasdaq.
All of the following persons are defined in the Uniform Securities Act,
EXCEPT:
a) Issuer
b) Broker-dealer
c) Registered representative
d) Investment adviser representative Correct Answer-c) Registered
representative
The term registered representative is not defined in the Uniform
Securities Act, although it is used in federal law.
According to the National Securities Markets Improvement Act
(NSMIA), state Administrators are allowed to set:
a) Net capital requirements for issuers
b) Net capital requirements for agents of broker-dealers
,c) minimum financial requirements for investment adviser
representatives
d) Minimum financial requirements not to exceed those set by the SEC
Correct Answer-d) Minimum financial requirements not to exceed those
set by the SEC
Under NSMIA, state securities Administrators are not allowed to impose
requirements that are more stringent than SEC regulations
According to the NASAA Guidelines Regarding Viatical Investments,
purchasers of these securities should meet which of the following
financial standards?
a) A minimum of net worth of $250,000
b) A minimum net worth of $150,000 and an annual income of $100,000
c) The same requirements as accredited investor
d) All of the above Correct Answer-d) All of the above
According to the NASAA Guidelines Regarding Viatical Investments,
viaticals are suitable for the following individuals and entities.
Individuals who have a minimum net worth of $250,000 regardless of
income, choice (a)
Individuals who have a minimum net worth of $150,000 and an annual
income of at least $100,000, choice (b)
Any individual or organization meeting the standards for accredited
investors under Regulation D of the Securities Act of 1933, choice (c)
, The investor's home equity must be excluded from these net worth
calculations. Also, no more than 10% of an individual client s portfolio
may be invested in viaticals
The owner of a small group of comic book stores is planning a public
offering of securities. The owner will be involved in marketing the
shares to the public, but will not receive direct compensation from the
sales. According to the Uniform Securities Act, the owner must register:
a) As an investment adviser
b) As an investment adviser representative
c) As a broker dealer
d) The securities Correct Answer-d) The securities
The question states that the owner is conducting a public offering of
securities. All securities offerings must be registered unless they can
qualify for an exemption. There is nothing in the stem to indicate that
the offering qualifies for an exemption.
The owner is not in the business of providing investment advice for
compensation and does not need to register as an investment adviser or
an investment adviser representative. The owner also does not meet the
definition of a broker-dealer—he is not "in the business of effecting
securities transactions." The owner is an issuer and issuers are
specifically excluded from the definition of a broker-dealer.
A broker-dealer registered in Georgia sells a security listed on Nasdaq.
The transaction takes place in the secondary market between two clients
