Series 63 Practice Exam 4

Mrs. Green has expressed a desire to obtain diversified long-term growth and wants to hear your best recommendation to achieve her objective. You strongly recommend shares of the Allied fund which has substantial holdings of preferred stocks and debentures. Under the NASAA Statements of Policy governing suitability, your recommendation:

Exempted transactions under the USA include each of these except:

According to the definitions found in the USA, each of the below is a person except:

In accordance with the USA, which two of the below statements are accurate?

I.    an IA has a fiduciary obligation to its clients
 
II.   a broker-dealer has a fiduciary obligation to its clients
 
III.  when an IA has been approved to have custody, it has also been granted discretionary trading power.
 
IV.  an IA may exercise discretion in a client’s account with oral authorization from the client

Revocation orders put out by the Administrator:

Each of the below enjoys a regulatory exemption from USA-registration. Which meets the definition of a security-exemption?

Acceptable underwriter compensation can come in the form of non-cash compensation. Which of the below represent non-cash compensation to an underwriter?

When an Investment Adviser wishes to have a trade ticket executed, it cannot do so without running the trade through a broker-dealer with whom the IA has established an account for this purpose. This account more formally is referred to as:

An investment professional licensed to do business in a state is permitted to borrow money from a client under certain circumstances, with the exception of:

When an agent fails to renew their agent license, the Administrator:

When an agent is engaged in the sale of an asset-back security, disclosure requirements exclude:

In the event a broker-dealer has terminated all its agents, which of the below would be the least likely approach of the Administrator?

An IA is planning to apply for registration and has noted that under NSMIA of 1996, it has two choices: State-covered, or Fed-covered. In order to qualify for Fed-covered, which of the below is correct:

Absent a specific ruling by an Administrator, an IA may not charge:

Cross-border transactions between a b-d registered in a Canadian Province and a client in a United States state, are governed predominantly by:

The regulators used the term ‘pooled’ investment, typically referring to:

Under the USA, an agent could be held liable if:

Each of the below is not a flow-through enterprise according to the IRS with the exception of:

A breakpoint sale as that term is used when referring to open-end funds registered under the Investment Company Act of 1940 would be best described as:

The USA, and NASAA, encourage all broker-dealers and IAs to put in place compliance systems which include protections for cyber-security for their firm’s clients as well as the firm itself. To that end, the regulators mandate a minimum amount of protection per customer account of: