Series 63 Test Questions with correct answers
According to the Uniform Securities Act, if an employee of an issuer is
soliciting employees of that issuer for the purpose of selling securities,
which of the following statements is TRUE Correct Answer-The
employee would be considered an agent if she received commissions or
other remuneration
Generally, an employee of an issuer soliciting employees of that issuer
for the purpose of selling securities would be considered an agent of the
issuer if the employee received commissions or other remuneration
(such as a bonus based on securities sales). According to the USA, these
transactions are not exempt if the employee receives a commission
Which of the following choices is NOT a security Correct Answer-A
universal life insurance policy
A universal life insurance policy is a type of permanent life insurance
policy that is regulated by the insurance commissioner. Variable
products, voting trust certificates, and oil, gas, and mining interests are
securities according to the Uniform Securities Act
Which of the following documents must be filed with the state
Administrator for registration of all broker-dealers, investment advisers,
agents, and investment adviser representatives Correct Answer-The
Consent to Service of Process
,The Consent to Service of Process 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. The other forms listed may or may not
be filed by certain persons, but the Consent to Service of Process is the
only form that is required of ALL persons
A new client approaches an agent regarding opening a new account but
refuses to discuss his financial status. The agent should Correct Answer-
Accept only unsolicited orders until more information is known
An agent may not solicit orders from a client when no information about
the client's financial status is known
An advisory client of your firm has contacted the Administrator of the
state of Kentucky about a possible violation of the Uniform Securities
Act. The firm has its home office in Illinois and is registered in both
states. Which of the following actions would the Administrator of
Kentucky be LEAST likely to take regarding the possible violation?
a. Begin an investigation in Kentucky
b. Open an investigation in Illinois
c. Contact the Illinois Administrator
d. None Correct Answer-None
,The Administrator has the authority to begin an investigation if a
violation has occurred or is about to occur. The investigation may take
place within or outside the state as deemed necessary
Under the Uniform Securities Act, which of the following choices is
NOT a security?
a. Non-traded REITs
b. Stock futures
c. Keogh Participation Units
d. Options on currency futures Correct Answer-Stock futures
Under the Uniform Securities Act, futures, forwards, currencies, and
commodities are not considered securities. Although futures are not
securities, options on futures are. While a Keogh Plan is not a security, a
participation unit in the plan is defined as a security. A real estate
investment trust is a security regardless of how or if it is traded
A newly hired employee is applying for registration as an agent in State
Z. What information does the agent need to disclose on his application
for registration (Form U4)?
I.Any alias that the agent has used
II. A real estate partnership that the agent controlled that declared
bankruptcy five years ago
, III.The agent has an unsatisfied judgment against him as the result of an
auto accident
IV.The fact that the agent's house is in foreclosure Correct Answer-I, II,
and III only
An applicant for registration must disclose any alias used, choice (I).
The applicant must also disclose any personal bankruptcies or
bankruptcies of entities that he controlled during the last 10 years,
choice (II), and unsatisfied judgments, choice (III). Tax liens must also
be reported. A foreclosure is not a reportable item on Form U4
A no-load mutual fund has no:
I. 12b-1 fees
II. Front-end sales charges
III. Contingent deferred sales charges Correct Answer-II and III only
A no-load mutual fund may not have any front-end sales charges (loads)
or any contingent deferred sales charges (back-end loads). It may have a
12b-1 fee as long as this fee does not total more than .25% of the fund's
average annual net assets
Decisions settled by arbitration:
a. May be appealed
b. Are not binding if either party contests the decision
According to the Uniform Securities Act, if an employee of an issuer is
soliciting employees of that issuer for the purpose of selling securities,
which of the following statements is TRUE Correct Answer-The
employee would be considered an agent if she received commissions or
other remuneration
Generally, an employee of an issuer soliciting employees of that issuer
for the purpose of selling securities would be considered an agent of the
issuer if the employee received commissions or other remuneration
(such as a bonus based on securities sales). According to the USA, these
transactions are not exempt if the employee receives a commission
Which of the following choices is NOT a security Correct Answer-A
universal life insurance policy
A universal life insurance policy is a type of permanent life insurance
policy that is regulated by the insurance commissioner. Variable
products, voting trust certificates, and oil, gas, and mining interests are
securities according to the Uniform Securities Act
Which of the following documents must be filed with the state
Administrator for registration of all broker-dealers, investment advisers,
agents, and investment adviser representatives Correct Answer-The
Consent to Service of Process
,The Consent to Service of Process 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. The other forms listed may or may not
be filed by certain persons, but the Consent to Service of Process is the
only form that is required of ALL persons
A new client approaches an agent regarding opening a new account but
refuses to discuss his financial status. The agent should Correct Answer-
Accept only unsolicited orders until more information is known
An agent may not solicit orders from a client when no information about
the client's financial status is known
An advisory client of your firm has contacted the Administrator of the
state of Kentucky about a possible violation of the Uniform Securities
Act. The firm has its home office in Illinois and is registered in both
states. Which of the following actions would the Administrator of
Kentucky be LEAST likely to take regarding the possible violation?
a. Begin an investigation in Kentucky
b. Open an investigation in Illinois
c. Contact the Illinois Administrator
d. None Correct Answer-None
,The Administrator has the authority to begin an investigation if a
violation has occurred or is about to occur. The investigation may take
place within or outside the state as deemed necessary
Under the Uniform Securities Act, which of the following choices is
NOT a security?
a. Non-traded REITs
b. Stock futures
c. Keogh Participation Units
d. Options on currency futures Correct Answer-Stock futures
Under the Uniform Securities Act, futures, forwards, currencies, and
commodities are not considered securities. Although futures are not
securities, options on futures are. While a Keogh Plan is not a security, a
participation unit in the plan is defined as a security. A real estate
investment trust is a security regardless of how or if it is traded
A newly hired employee is applying for registration as an agent in State
Z. What information does the agent need to disclose on his application
for registration (Form U4)?
I.Any alias that the agent has used
II. A real estate partnership that the agent controlled that declared
bankruptcy five years ago
, III.The agent has an unsatisfied judgment against him as the result of an
auto accident
IV.The fact that the agent's house is in foreclosure Correct Answer-I, II,
and III only
An applicant for registration must disclose any alias used, choice (I).
The applicant must also disclose any personal bankruptcies or
bankruptcies of entities that he controlled during the last 10 years,
choice (II), and unsatisfied judgments, choice (III). Tax liens must also
be reported. A foreclosure is not a reportable item on Form U4
A no-load mutual fund has no:
I. 12b-1 fees
II. Front-end sales charges
III. Contingent deferred sales charges Correct Answer-II and III only
A no-load mutual fund may not have any front-end sales charges (loads)
or any contingent deferred sales charges (back-end loads). It may have a
12b-1 fee as long as this fee does not total more than .25% of the fund's
average annual net assets
Decisions settled by arbitration:
a. May be appealed
b. Are not binding if either party contests the decision
