FINRA Series 63 Questions with Correct Answers
selling away Correct Answer-when a representative engages in private
securities transactions without the knowledge or consent of his
employer.
commingling Correct Answer-when a brokerage firm combines its
securities with customer's securities (e.g., to present collateral for a bank
loan).
historical performance Correct Answer-may be shown to investors as
long as proper disclosure is provided indicating that it DOES NOT
predict future results.
legal person Correct Answer-an entity that can engage in legal activities
such as signing contracts or opening accounts. These folks are not dead,
minors, or people who have been declared mentally incompetent.
promptly Correct Answer-The time frame that agents as well as broker-
dealers or issuers notify the Administrator when agents begin or
terminate employment.
December 31st, annually Correct Answer-Registration for both agents
and investment adviser representatives expires:
administrator Correct Answer-The official or agency administering the
securities laws of a state.
, advertisement Correct Answer-Any material designed for use by
newspapers, magazines, radio, television, telephone recording or any
other public medium to solicit business.
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."
anti-fraud rules Correct Answer-Although exempt securities and
securities sold in exempt transactions are exempt from the registration
and advertising filing requirements of the Uniform Securities Act, no
security or person is exempt from the ________________.
associated person Correct Answer-Any employee, manager, director,
officer or partner of a member broker/dealer or another entity (issuer,
bank, etc.) or any person controlling, controlled by or in common
control with that member is considered an _____________________ of
that member.
blue-sky laws Correct Answer-State regulations governing the securities
industry.
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.
selling away Correct Answer-when a representative engages in private
securities transactions without the knowledge or consent of his
employer.
commingling Correct Answer-when a brokerage firm combines its
securities with customer's securities (e.g., to present collateral for a bank
loan).
historical performance Correct Answer-may be shown to investors as
long as proper disclosure is provided indicating that it DOES NOT
predict future results.
legal person Correct Answer-an entity that can engage in legal activities
such as signing contracts or opening accounts. These folks are not dead,
minors, or people who have been declared mentally incompetent.
promptly Correct Answer-The time frame that agents as well as broker-
dealers or issuers notify the Administrator when agents begin or
terminate employment.
December 31st, annually Correct Answer-Registration for both agents
and investment adviser representatives expires:
administrator Correct Answer-The official or agency administering the
securities laws of a state.
, advertisement Correct Answer-Any material designed for use by
newspapers, magazines, radio, television, telephone recording or any
other public medium to solicit business.
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."
anti-fraud rules Correct Answer-Although exempt securities and
securities sold in exempt transactions are exempt from the registration
and advertising filing requirements of the Uniform Securities Act, no
security or person is exempt from the ________________.
associated person Correct Answer-Any employee, manager, director,
officer or partner of a member broker/dealer or another entity (issuer,
bank, etc.) or any person controlling, controlled by or in common
control with that member is considered an _____________________ of
that member.
blue-sky laws Correct Answer-State regulations governing the securities
industry.
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.
