Series 63 Practice Exam 5

Each of the below is a securities instrument under the USA except:

Consent to service of process is a requirement:

You’re an Agent with ABC brokerage firm. A long-time friend has come into possession of some hot information about a medical break-through at a publicly-trade pharma corporation, and it is reliable. You recommend the stock immediately to a considerable number of your clients. Has a violation occurred?

Which of the below constitutes a security according to the USA?

I.    Certification of participation in oil, gas, or mineral rights
 
II.   Voting trust certificate
 
III.  Subordinated debenture of a company in Chapter 11 receivership
 
IV.  Variable Whole Life Insurance Policy

Choose from the below instruments which are not defined by the USA as a security.

I.    Artwork
 
II.   Wine
 
III.  Wine warehouse receipt
 
IV.  Multi-level marketing scheme

Put and Call Options which trade daily on the Chicago Board Options Exchange:

When the Board of Directors of a mutual fund declares a quarterly cash dividend, there is a cut-off date set by the board which determines which fund shareholders are entitled to the dividend, referred to as the:

When a mutual fund salesperson encourages a client to purchase mutual fund shares just prior to a forthcoming dividend so as to benefit from that dividend income, this is:

An Administrator will reject or deny the registration of a security if:

I.    Consent to service of process does not accompany the filing
 
II.   A filing fee is absent
 
III.  There are omissions in the registration documents
 
IV.  The Issuer does not do business in this state

Generally speaking, when a transaction takes place in a customer’s account, a confirmation of that trade will be sent to the client and should be received by the:

NASAA has initiated a program of investor awareness advising against obtaining any investment ‘advice’ in social media venues. By and large, the persons who offer such advice are not especially knowledgeable, rarely are licensed, and may be engaged in unlawful activity. NASAA refers to them as:

Senior investors are generally considered those who are:

One of the red-flags to indicate suspicious activity in a customer’s account:

NASAA has recently revised its sales and suitability standards for both traded and non-traded REITs. The principal difference between these two investments is that:

NASAA has adopted a set of interpretations pertaining to the payment of arbitration awards filed against registered broker-dealers and their agents. Any registrant who knowingly fails to pay such a monetary award, or fails to enter into a payment agreement with the customers who won the case, will be deemed to:

Broker-dealers and IA firms, in opening new accounts or new client IA contracts,

Continuing Education has long been a requirement for agents of broker-dealers. IA firms, under the USA,

According to regulatory authorities, a customer wishing to open a discretionary account cannot do so with a broker-dealer unless certain conditions are met. Chief among them are the customer has:

When a client of an IA firm wishes to grant discretionary authority to the firm and one or more of its IARs:

The statute of limitations under state law for civil liability is as follows: