Series 63 Practice Exam 1

The Bank Secrecy Act requires financial institutions to

The term ‘state’ as used in the USA refers to

I.    the federal District of Columbia
 
II.   the Commonwealth of Puerto Rico
 
III.  any Canadian Province

None of the following are excluded from the definition of person under the USA except:

I.    a decedent
 
II.   a non-emancipated minor
 
III.  the conservator for a person declared mentally incompetent

A person engaged in buying and selling securities is considered, under the USA, a(an)

When a broker-dealer charges a mark-up or mark-down in a transaction, it has acted:

A bank holding company owns a bank and a broker-dealer. Which of the following entities must register as a broker-dealer under the USA?

One of your long-time most profitable individual brokerage firm customers has moved from New York to Florida, permanently. Your broker/dealer is not registered in Florida. If you wish to maintain a financial relationship with this client, you have how many days to register in Florida?

Under NSMIA, Federal covered securities under New York state securities law include each of the below except:

Which of the below is a Federal Covered security?

I.    pre-emptive rights of IBM corporation
 
II.   IBM warrants expiring in less than 5 years
 
III.  IBM collateral trust certificates
 
IV.  IBM common stock

Under the USA, the statute of limitations

I.    runs for 5 years from the date of a criminal offense
 
II.   runs for no longer than 3 years from the date of a civil violation
 
III.  may result in up to 5 years in prison for criminal or civil misdeeds

Under which of the following circumstances is an investment adviser which has been granted discretionary power by a client also considered to have custody as that term is interpreted under the USA?

Certain Fed-covered securities require Notice Filing with Administrators of states in which those securities are going to be sold, including:

The private placement exemption available to issuers under the USA places conditions on the distribution which include:

I.    those soliciting investors may not be compensated for sales of the securities unless the buyer qualifies as an institutional investor.
 
II.   the securities may be offered to no more than 35 individual non-institutional investors.
 
III.  institutional and non-institutional buyers must be buying for investment purposes.

Under the most recent amendments to the regulations governing IA registration:

Under the NASAA Statement of Policy regarding unethical and prohibited practices of broker-dealers, agents, investment advisers and investment adviser representatives, solicitation of a transaction in unregistered non-exempt securities:

The USA includes all of the following in the category of exempted securities with the exception of:

When an IAR of a fed-covered IA voluntarily terminates, who is responsible for notifying the Administrator of the state in which the IAR is located?

When recommending and/or selling Class A shares of an open-end investment company, an agent or an IAR must be mindful of the availability of breakpoints and the methods of qualifying for them. A breakpoint sale:

When is a gift of securities deemed a sale?

A customer of a broker-dealer places a purchase order for 50,000 shares of ABC common stock currently trading at $50 per share on the NYSE. The agent handling the account enters a buy order for 1,000 shares of ABC in his personal account prior to entering the customer’s order.