Series 63 Practice Exam 2

An IAR may borrow money from all of the following with the exception of:

The best way to handle a conflict-of-interest situation is:

Under what circumstances may an agent split a commission with another agent?

The USA grants to Administrators substantial powers to enforce and administer a state’s securities laws. However, those powers are not unlimited, and do not include which of the following?

When a customer of a broker-dealer believes that securities were sold to him in violation of one or more laws and/or regulations, the broker-dealer may offer rescission as a remedy. Which of the below statements regarding rescission are true?

When an agent engages in a practice of entering purchase orders and sell orders for the same stock throughout the trading day for the purpose of creating the impression of active trading volume, this practice is referred in the USA as:

In order to avoid being defined as a broker-dealer in Wyoming,

I.    the firm may not have its main office there.
 
II.   the firm must have 5 or fewer clients there.
 
III.  the firm may not have a place of business there.
 
IV.  the firm’s only clients there must be institutions.

Under NASAA Guidelines governing the use of business websites, if a firm makes a change or multiple changes to its website on the same day:

Qualification is a form of registration of:

All of the below are exempted transactions under the USA except:

Under the USA, exempted transactions as defined would include non-issuer transactions, by a registered agent of a registered broker-dealer:

I.    not involving an issuer which is a blank-check company
 
II.   in which the security is sold at a price reasonably related to the current market price of the security
 
III.  not involving an issuer in the organizational stage
 
IV.  which result from the use of written discretionary power

Which of the following statements is untrue?

Broker-dealers, agents of broker-dealers, Investment Advisers, and IARs, when publishing information about securities on the internet:

According to the Uniform Securities Act as amended, commercial paper may be considered an exempt security under which of the following conditions:

An IAR has recommended the stock of Amalgamated Consolidated Group (ACG), a diversified financial services holding company which your IA follows in its research department. Which of the below would represent a violation of your firm’s and your fiduciary obligations to your customer?

Under the Uniform Securities Act, regarding record-keeping and net capital requirements, a broker-dealer with offices in several states:

When an agent’s association with a broker-dealer is terminated and the agent joins a new firm shortly thereafter:

Excluded from the definition of investment adviser under the USA is each of the below except:

A state Administrator has a great many powers set forth in the USA. The power to revoke or deny a registration exemption is one of those powers. Which of the below exemptions does the Administrator lack the authority to exercise this power?

Defensive industries characteristically include each of these except: