STC Series 63 Test 5 Questions with 100% Correct
Answers
Under the Uniform Securities Act, what's included in the
damages from a misstatement or omissions of a material
fact?
I. Interest
II. Court costs
III. Treble damages
IV. Attorney's fees
A. I and III only
B. I, II, and III only
C. I, II, and IV only
D. I, II, III, and IV Correct Answer: C.
,Under the Uniform Securities Act, civil damages include
court costs, attorney's fees, and a reasonable rate of
interest. Treble damages are the civil penalties that may
be imposed under federal law for trading on inside
information.
Which of the following statements is TRUE about a
broker-dealer that holds cash and securities for a
customer?
A. The broker-dealer can commingle the cash and stock
of the customer with its own.
B .The broker-dealer can commingle the cash of the
customer with its own cash, but not stock.
C. The broker-dealer can commingle the stock of the
customer with its own stock, but not the cash.
D. The broker-dealer cannot commingle the cash or
stock of the customer with its own assets. Correct
Answer: B.
,Broker-dealers can commingle a customer's cash with its
own cash. However, stock that's owned by a broker-
dealer cannot be commingled with the stock that's
owned by the customer.
An order ticket must include all of the following
information, EXCEPT:
A. The account for which the order was entered
B. The price and time at which it was executed
C. The time of entry
D. Authorization of a registered principal Correct
Answer: D.
An order ticket must include the client's account
number, the time and price at which the order was
executed (to the extent feasible), and the time the
, order was entered. A registered principal is not required
to approve all orders before they are executed but is
required to review all orders afterward. (75561)
The Uniform Securities Act requires that an investment
adviser deliver a written disclosure document to an
advisory client or prospective advisory client. In which
TWO of the following situations is the adviser NOT
required to send this document to clients?
I. The firm advises only investment companies but does
not send its brochure to them
II. The firm sends a newsletter to subscription clients who
pay an annual fee of $120
III. The firm has no office in the state
IV. The firm advises only institutional investors
A. I and II
B. II and III
Answers
Under the Uniform Securities Act, what's included in the
damages from a misstatement or omissions of a material
fact?
I. Interest
II. Court costs
III. Treble damages
IV. Attorney's fees
A. I and III only
B. I, II, and III only
C. I, II, and IV only
D. I, II, III, and IV Correct Answer: C.
,Under the Uniform Securities Act, civil damages include
court costs, attorney's fees, and a reasonable rate of
interest. Treble damages are the civil penalties that may
be imposed under federal law for trading on inside
information.
Which of the following statements is TRUE about a
broker-dealer that holds cash and securities for a
customer?
A. The broker-dealer can commingle the cash and stock
of the customer with its own.
B .The broker-dealer can commingle the cash of the
customer with its own cash, but not stock.
C. The broker-dealer can commingle the stock of the
customer with its own stock, but not the cash.
D. The broker-dealer cannot commingle the cash or
stock of the customer with its own assets. Correct
Answer: B.
,Broker-dealers can commingle a customer's cash with its
own cash. However, stock that's owned by a broker-
dealer cannot be commingled with the stock that's
owned by the customer.
An order ticket must include all of the following
information, EXCEPT:
A. The account for which the order was entered
B. The price and time at which it was executed
C. The time of entry
D. Authorization of a registered principal Correct
Answer: D.
An order ticket must include the client's account
number, the time and price at which the order was
executed (to the extent feasible), and the time the
, order was entered. A registered principal is not required
to approve all orders before they are executed but is
required to review all orders afterward. (75561)
The Uniform Securities Act requires that an investment
adviser deliver a written disclosure document to an
advisory client or prospective advisory client. In which
TWO of the following situations is the adviser NOT
required to send this document to clients?
I. The firm advises only investment companies but does
not send its brochure to them
II. The firm sends a newsletter to subscription clients who
pay an annual fee of $120
III. The firm has no office in the state
IV. The firm advises only institutional investors
A. I and II
B. II and III
