Series 63 Questions with Correct Answers
Uniform Securities Act Correct Answer-model legislation from 1956
administrator Correct Answer-office or agency that has the complete
responsibility for administering the securities laws of that state; has
jurisdiction over all security activities in the state
cease and desist Correct Answer-used by administrator whenever it
appears any registered person has engaged or is about to violate
provisions of the USA. may be issued without prior hearing ; only
applies to registered persons not securities
stop order Correct Answer-deny effectiveness of any registration
statement. applies only to securities
summary order/acting summarily Correct Answer-acting without prior
notice; can be used with regard to registration of both persons and
securities. must promptly nofiy all parties that it has been entered, the
reason, and within 15 days after the receipt of a written requestiuon a
hearing will be granted
final order Correct Answer-no final order can be entered without prior
notice, opportunity of hearing, written findings of fact and conclusions
of law
blue sky laws Correct Answer-refers to state securities laws
,person Correct Answer-any individual, corporation, partnership,
association, joint stock compny, et cetera. very broad
excluded from person definition Correct Answer-minors, deceased
individuals, mentally incompetent
broker dealer Correct Answer-broker is anyone acting on behalf of
others, dealers act on their own behalf. BD
agent Correct Answer-any individual, other than BD, who represents a
BD or issuer in effecting of purchasing or sale of securities
investment adviser Correct Answer-who's compensation is in the
business of advertising others
investment adviser representative Correct Answer-any individual who
represents a state registered investment advisers. IAR
issuer Correct Answer-issues or proposes any security
nonissuer Correct Answer-means not directly or indirectly for benefit of
the issuer. nonissuer transaction is nonissuewr because issuer doesn't get
the cash
, exempt security Correct Answer-does not have to be registered in order
to be sold
exempt transaction Correct Answer-registaration with administrator and
filing of advertising material is not required in order for that transaction
to take place
guaranteed Correct Answer-guaranteed as to payment of principal,
interest, or dividnds but NOT capital gains
four classes of persons: Correct Answer-BDs, agents (always
individuals), investment advisers (generally
corporations/partnerships/legal persons), and investment adviser
representatives (always individuals)
place of business Correct Answer-if a BD doesn't have a place of
business in a state and only transacts with other BDs in that statre, they
do not need to register with that state's administrator
net finance requirements Correct Answer-broker dealers who meet the
SEC's net capital or bonding requirements cannot be required to meet
higher ones in any state in which they do busieness
BD registration becomes effected Correct Answer-`at noon on the 30th
day after filing
Uniform Securities Act Correct Answer-model legislation from 1956
administrator Correct Answer-office or agency that has the complete
responsibility for administering the securities laws of that state; has
jurisdiction over all security activities in the state
cease and desist Correct Answer-used by administrator whenever it
appears any registered person has engaged or is about to violate
provisions of the USA. may be issued without prior hearing ; only
applies to registered persons not securities
stop order Correct Answer-deny effectiveness of any registration
statement. applies only to securities
summary order/acting summarily Correct Answer-acting without prior
notice; can be used with regard to registration of both persons and
securities. must promptly nofiy all parties that it has been entered, the
reason, and within 15 days after the receipt of a written requestiuon a
hearing will be granted
final order Correct Answer-no final order can be entered without prior
notice, opportunity of hearing, written findings of fact and conclusions
of law
blue sky laws Correct Answer-refers to state securities laws
,person Correct Answer-any individual, corporation, partnership,
association, joint stock compny, et cetera. very broad
excluded from person definition Correct Answer-minors, deceased
individuals, mentally incompetent
broker dealer Correct Answer-broker is anyone acting on behalf of
others, dealers act on their own behalf. BD
agent Correct Answer-any individual, other than BD, who represents a
BD or issuer in effecting of purchasing or sale of securities
investment adviser Correct Answer-who's compensation is in the
business of advertising others
investment adviser representative Correct Answer-any individual who
represents a state registered investment advisers. IAR
issuer Correct Answer-issues or proposes any security
nonissuer Correct Answer-means not directly or indirectly for benefit of
the issuer. nonissuer transaction is nonissuewr because issuer doesn't get
the cash
, exempt security Correct Answer-does not have to be registered in order
to be sold
exempt transaction Correct Answer-registaration with administrator and
filing of advertising material is not required in order for that transaction
to take place
guaranteed Correct Answer-guaranteed as to payment of principal,
interest, or dividnds but NOT capital gains
four classes of persons: Correct Answer-BDs, agents (always
individuals), investment advisers (generally
corporations/partnerships/legal persons), and investment adviser
representatives (always individuals)
place of business Correct Answer-if a BD doesn't have a place of
business in a state and only transacts with other BDs in that statre, they
do not need to register with that state's administrator
net finance requirements Correct Answer-broker dealers who meet the
SEC's net capital or bonding requirements cannot be required to meet
higher ones in any state in which they do busieness
BD registration becomes effected Correct Answer-`at noon on the 30th
day after filing
