100% Guaranteed Results Series63 Unlimited 251 Questions [2025]
Series63 Dumps PDF - Want To Pass Series63 Fast
NEW QUESTION # 47
Which of the following entities must sign a "consent to service of process," thereby allowing the Administrator to receive legal documents that are meant to be served to the entity in place of that entity?
I. agents
II. investment advisers
III. investment adviser representatives
IV. broker-dealers
- A. II and III only
- B. I, II, III, and IV
- C. II and IV only
- D. I and IV only
Answer: B
Explanation:
Explanation
Agents, investment advisers, investment adviser representatives, and broker-dealers must all sign a consent to service of process, allowing the Administrator to receive legal documents in their stead. The consent to service of process must accompany the application for registration with the state or the documentation provided with a notice filing when permitted.
NEW QUESTION # 48
Desi Genuos is an agent with Broker-Dealer CanDo. A client has asked Desi to recommend a mutual fund
that does not have a sales charge. Desi recommends a fund that has no front-
end load although it does have a deferred sales load if the investor redeems his shares within the first
three years of ownership, but the client has informed Desi that he is looking at this as a long-term
investment. Based on these facts, Desi
- A. is not in violation of any rules since the fund has no front-end load and the deferred sales load will not
apply to this client, given his indication that this is meant to be a long-term investment. - B. will not be in violation of any NASAA rules as long as he has his client sign a "letter of intent."
- C. is not in violation of any rules because he is an agent of a broker-dealer and is not affiliated with the
fund he has recommended in any manner. - D. is in violation of NASAA rules regarding investment company shares.
Answer: D
Explanation:
If Desi recommends a mutual fund that has a deferred sales load to a client who requests a
mutual fund with no sales charge, he is in violation of NASAA rules regarding investment company shares.
The NASAA rules specify that it is prohibited for an agent to state or imply that the investment has no
sales charge if there is a deferred sales load involved. It doesn't matter if, in fact, the deferred load may
never have to be paid by the client. A letter of intent involves a statement of intent by the investor to invest
an amount that will meet a breakpoint that will entitle him to a lower load charge. This is not pertinent to
this specific question.
NEW QUESTION # 49
S. White and Associates is an investment adviser registered in the state of Kentucky and, as such, is meeting Kentucky's minimum net capital requirement for investment advisers. The firm recently registered with the state of Virginia and has opened an office there. Virginia has a significantly higher net capital requirement for its investment advisers.
Which of the following statements is true?
- A. According to the Investment Advisers Act of 1940, S. White will have to maintain a minimum net capital equal to the average of the net capital requirements of the two states.
- B. According to the Investment Advisers Act of 1940, S. White needs only to meet the net capital requirement of Kentucky.
- C. According to the Uniform Securities Act, S. White will have to meet Virginia's higher requirement.
- D. According to the Securities Exchange Act of 1934, S. White needs to meet at least the minimum net capital requirement specified by that Act since it is now operating in multiple states.
Answer: B
Explanation:
Explanation
Since S. White is already registered in the state of Kentucky and meeting the net capital requirement of that state, the Investment Advisers Act of 1940 stipulates that Virginia cannot require a higher minimum net capital. The Act states that if an investment adviser is registered in one state and is meeting its net capital requirement, a second state cannot impose a higher net capital requirement on the investment adviser.
NEW QUESTION # 50
You have passed the necessary exams (congratulations!) and are applying for registration as a securities agent.
It is already the end of September. Therefore, you must pay
- A. the full annual fee, and your license will expire on September 30th next year.
- B. the full annual fee, and your license will expire on December 31st next year.
- C. one-fourth of the annual fee required since only one quarter of the year remains.
- D. the full annual fee, and your license will expire on December 31st this year.
Answer: D
Explanation:
Explanation
Once you have passed the necessary exams and are applying for registration as an agent, you must pay the full annual fee and your license will expire on December 31st of the current year, no matter how late in the year it is.
NEW QUESTION # 51
Under the 2002 Uniform Securities Act, registration by coordination allows:
- A. securities that do not fall within the category of federal covered securities to be registered simultaneously with the SEC and with the states in which the securities will be offered for sale.
- B. issuers of federal covered securities to submit only a notice filing with the Administrator of states in which the securities will be offered for sale.
- C. federal covered securities to be registered simultaneously with the SEC and with the states in which the securities will be offered for sale.
- D. both state-registered and out-of-state investment bankers to participate in the underwriting and registration of a new security issue.
Answer: A
Explanation:
Explanation
Under the 2002 Uniform Securities Act, registration by coordination allows securities that are not federal covered securities to be registered simultaneously with the SEC and with the states in which the securities will be offered for sale. Federal covered securities are exempt from state registration and are required to submit only a notice filing with the Administrator of the state. This is not the same as registration by coordination.
NEW QUESTION # 52
Cal Turner calls his client and recommends that the client sell his shares in the Alpha High Quality Bond Fund and use the proceeds to buy shares in the Omega High Quality Bond Fund. Cal has done nothing unethical if his recommendation is based on the fact that
- A. the Alpha Fund has been performing poorly relative to other funds in the same category.
- B. the Omega Fund has a front-end load.
- C. It would always be unethical for Cal to recommend that a client sell shares in one fund in order to buy shares of another fund that has the same investment objective.
- D. the Alpha Fund has a back-end load.
Answer: A
Explanation:
Explanation
Cal has done nothing unethical if his recommendation that a client sell his shares in the Alpha Fund and buy shares of the Omega Fund is due to the fact that the Alpha Fund has been performing poorly relative to other funds in the same category. While past performance is no guarantee of future performance, a client may not want to hang on to a fund that isn't returning as much as its competition.
NEW QUESTION # 53
Which of the following is a security as defined by the Uniform Securities Act (USA)?
- A. a term life insurance policy
- B. Both A and B are securities as defined by the Uniform Securities Act.
- C. a futures option contract on wheat
- D. a debenture
Answer: B
Explanation:
Explanation
Both a debenture and a futures option contract on wheat are securities as defined by the USA. A debenture is a long-term, unsecured debt instrument and is specifically listed as a security in the Act. Although commodity futures contracts are not considered to be securities as defined by the Act, options on commodity futures contracts are.
NEW QUESTION # 54
Rich Quick is a broker-dealer licensed in the state of Massachusetts and has offices only within the state. Two of Rich Quick's clients regularly vacation in Florida during the winter months, and Rich Quick executes trades for them when they call him from out-of-state.
Based on these facts,
I. Rich Quick needs to register as a broker-dealer in the state of Florida as well.
II. Rich Quick needs to register only as an agent in the state of Florida.
III. Rich Quick needs to establish an office in the state of Florida in order to transact business.
IV. Rich Quick need not register in Florida.
- A. Statements II and III are true.
- B. Statements I and III are true.
- C. Only Statement I is true.
- D. Only Statement IV is true.
Answer: D
Explanation:
Explanation
Based on the facts provided, Rich Quick need not register in Florida since he has no offices in the state of Florida, and he is conducting business for existing clients who are merely vacationing in Florida and are not residents of the state.
NEW QUESTION # 55
Erin is a registered agent who works for SecureMoney Brokers-dealers. One of her clients, Mrs. McTurk, is a recently-widowed woman who relies on Erin for advice about her investment portfolio. Mrs. McTurk reminds Erin of her own grandmother, and she is happy to provide guidance within the sphere of her own knowledge.
Based on these facts, which of the following statements is true?
- A. Neither SecureMoney Broker-dealers nor Erin must register as an investment adviser based on the facts provided.
- B. SecureMoney Broker-dealers must register as an investment adviser since one of its employees is providing investment advice.
- C. SecureMoney Broker-dealers must register as an investment adviser since one of its employees is providing investment advice, and Erin must register as an investment adviser representative as the firm's employee.
- D. Erin must register as an investment adviser since she is providing investment advice.
Answer: A
Explanation:
Explanation
Neither SecureMoney Broker-dealers nor Erin must register as an investment adviser based on the facts provided since neither the broker-dealer nor Erin is receiving any compensation for the advice Erin is giving Mrs. McTurk. In this instance, the advice provided is considered incidental to the broker-dealer business.
NEW QUESTION # 56
Which of the following would not be found in a tombstone advertisement?
- A. the name of the issuer
- B. the price at which the security will be offered
- C. the interest rate and time to maturity of a bond issue
- D. the names of the underwriters
Answer: B
Explanation:
The price at which the security will be offered will not be found in a tombstone advertisement.
A tombstone advertisement is not an offer to sell the security and, in any case, it is unlikely that the final
offer price will have even been decided on at this point.
NEW QUESTION # 57
Desi Genuos is an agent with Broker-Dealer CanDo. A client has asked Desi to recommend a mutual fund that does not have a sales charge. Desi recommends a fund that has no front-end load although it does have a deferred sales load if the investor redeems his shares within the first three years of ownership, but the client has informed Desi that he is looking at this as a long-term investment. Based on these facts, Desi
- A. is not in violation of any rules since the fund has no front-end load and the deferred sales load will not apply to this client, given his indication that this is meant to be a long-term investment.
- B. will not be in violation of any NASAA rules as long as he has his client sign a "letter of intent."
- C. is in violation of NASAA rules regarding investment company shares.
- D. is not in violation of any rules because he is an agent of a broker-dealer and is not affiliated with the fund he has recommended in any manner.
Answer: C
Explanation:
Explanation
If Desi recommends a mutual fund that has a deferred sales load to a client who requests a mutual fund with no sales charge, he is in violation of NASAA rules regarding investment company shares. The NASAA rules specify that it is prohibited for an agent to state or imply that the investment has no sales charge if there is a deferred sales load involved. It doesn't matter if, in fact, the deferred load may never have to be paid by the client. A letter of intent involves a statement of intent by the investor to invest an amount that will meet a breakpoint that will entitle him to a lower load charge. This is not pertinent to this specific question.
NEW QUESTION # 58
The Administrator may not introduce a stop order to deny, revoke, or suspend the effective registration of a security based on facts that were disclosed during the registration process unless he does so within
- A. 45 days.
- B. 1 year.
- C. 30 days.
- D. 60 days.
Answer: C
Explanation:
Explanation
The Administrator may not introduce a stop order against the registration of a security based on facts that were disclosed during the registration process unless he does so within 30 days.
NEW QUESTION # 59
The trade confirmation must be received by the customer no later than
- A. one week after the settlement date.
- B. the settlement date.
- C. the day after the trade takes place.
- D. five business days after the settlement date.
Answer: B
Explanation:
Trade confirmations must be received by the customer no later than the settlement date.
NEW QUESTION # 60
Cal Turner calls his client and recommends that the client sell his shares in the Alpha High Quality Bond
Fund and use the proceeds to buy shares in the Omega High Quality Bond Fund. Cal has done nothing
unethical if his recommendation is based on the fact that
- A. the Alpha Fund has been performing poorly relative to other funds in the same category.
- B. the Omega Fund has a front-end load.
- C. the Alpha Fund has a back-end load.
- D. It would always be unethical for Cal to recommend that a client sell shares in one fund in order to buy
shares of another fund that has the same investment objective.
Answer: A
Explanation:
Cal has done nothing unethical if his recommendation that a client sell his shares in the
Alpha Fund and buy shares of the Omega Fund is due to the fact that the Alpha Fund has been
performing poorly relative to other funds in the same category. While past performance is no guarantee of
future performance, a client may not want to hang on to a fund that isn't returning as much as its
competition.
NEW QUESTION # 61
Which of the following statements best explains the difference between an agent and a broker-dealer?
- A. A broker-dealer must be licensed in the state in which he conducts business, but there are no separate
licensing requirements for agents. - B. Agents are engaged exclusively in the purchase and sale of stocks whereas broker-dealers also buy
and sell bonds and option contracts. - C. An agent is an individual who represents a broker-dealer or an issuer and buys and sells securities he
does not own in return for a commission on the transactions he executes. A broker-dealer may also buy
and sell securities for his own portfolio, in which case the broker-dealer enjoys any price appreciation on
those securities. - D. Agents conduct their business exclusively in the secondary market, while broker-dealers also operate
in the primary market.
Answer: C
Explanation:
The main difference between an agent and a broker-dealer is that an agent represents either
a broker-dealer or an issuer and buys and sells securities he doesn't own, receiving a commission for the
trades he executes. A broker-dealer, when functioning as a dealer, is buying and selling for his own
portfolio, thereby profiting from any price appreciation in the assets in his portfolio. Both agents and
broker-dealers must meet state licensing requirements; both engage in the purchase and sale of stocks,
bonds, and option contracts; and both operate in both the primary and secondary markets.
NEW QUESTION # 62
Once a person has filed an application with the Administrator, and in doing so has truthfully disclosed
every material fact, how long does the Administrator have after the effective date of the registration to
commence a proceeding to deny, suspend, or revoke that person's license based on those facts?
- A. one year.
- B. 90 days.
- C. 30 days.
- D. 60 days.
Answer: B
Explanation:
If a person has appropriately and truthfully disclosed every material fact on its application for
registration, the Administrator has 90 days after the registration becomes effective to commence a
proceeding to deny, suspend, or revoke the license. If the Administrator has known about the fact for
longer than this, he may not begin a proceeding against that person according to the Uniform Securities
Act.
NEW QUESTION # 63
Which of the following does not describe a prohibited practice for broker-dealers under the NASAA Model Rules?
I. SecureMoney Broker-Dealers has received a request from a client who wants SecureMoney to "identify a few solid firms in the Asian market and invest up to $20,000 in them." SecureMoney executes the purchases and receives the requisite signed discretionary authorization from the client before the settlement date.
II. CanDo Broker-Dealers executes a margin transaction for a client, promptly receiving a signed, written margin agreement from the client after the transaction takes place.
III. GetErDone Broker-Dealers receives a call from a client who wants to purchase some securities on margin.
GetErDone has the client come into the office to sign a properly executed margin agreement prior to effecting the transaction.
- A. II and III only
- B. I and III only
- C. III only
- D. None of the selections are prohibited practices.
Answer: A
Explanation:
Explanation
Neither Selection II nor Selection III describes a prohibited practice for broker-dealers under the NASAA Model Rules. Broker-dealers are permitted to execute margin transactions for clients as long as they receive a signed, written margin agreement promptly after the initial margin transaction takes place. The agreement need not be signed beforehand. Discretionary authorizations do need to be signed before the broker-dealer executes any discretionary transactions for a client, so Selection I describes a prohibited practice.
NEW QUESTION # 64
Vious and Associates is a small broker-dealer trying to generate more business. To this end, the firm had a professional four-color brochure printed that provides the years of industry experience of its management along with other information. The firm's founder, Ms. D. Vious, is listed as having over 30 years of experience in the industry. Ms. D. Vious has worked for broker-dealers for over 30 years, but for 20 of those 30 years, she was a secretary.
Has D. Vious violated any securities laws?
- A. No. Ms. D. Vious' years of experience is not a material fact that would affect an investor's investment decision.
- B. Yes. The broker-dealer is making a misleading statement in an advertising brochure in order to convince investors to do business with the firm.
- C. No. Technically, Ms. D. Vious does have over 30 years of experience in the industry, even though it was not in the capacity of an agent or a broker-dealer.
- D. No. Advertising brochures are not securities.
Answer: B
Explanation:
Explanation
Yes. The broker-dealer is making a misleading statement in an advertising brochure in order to convince investors to do business with the firm. This is deceitful and misleading, and persons involved in the securities industry are prohibited from making deceitful and misleading statements.
NEW QUESTION # 65
Mr. Bigwig, CEO of HiGrowth Corporation, meets with the president of BigFee Investment Bankers and
arranges for BigFee to underwrite an Initial Public Offering (IPO) for the firm. When the IPO comes to
market, GetErDone Broker-Dealers is part of the selling group, which handles the sale of the stock to the
public. In this scenario, which party is the broker?
- A. HiGrowth Corporation
- B. BigFee Investment Bankers
- C. GetErDone Broker-Dealers
- D. Mr. Bigwig
Answer: C
Explanation:
GetErDone Broker-Dealers is the broker in this scenario. GetErDone is simply finding buyers
for the securities and receives a commission for doing so. GetErDone is not itself purchasing the
securities in the scenario described. It would be considered unethical for the broker-dealer to do so since
they are required to make a bona fide public offering of all of the securities allotted to them for distribution
under NASAA Model Rules.
NEW QUESTION # 66
BondsRUs is a broker-dealer that (unsurprisingly) specializes in bonds. The firm has found that it is able to sell Treasury bonds that it buys for $90 per $100 of par value for $99 per $100 of par value to some of its more naive clients, who never pay attention to the confirmation statements BondsRUs sends them. BondsRUs is guilty of
- A. overcharging its clients by unreasonable markups. A $9 dealer's spread on Treasury bonds is unwarranted.
- B. both B and C.
- C. fraud.
- D. nothing. It is acting as a dealer in bonds and, as such, can charge its clients whatever the clients are willing to pay.
Answer: A
Explanation:
Explanation
BondsRUs is guilty of overcharging its clients by unreasonable markups. A $9 dealer's spread on a risk-free investment such as a Treasury bond is unwarranted, and this practice is prohibited.
Based on the information provided, BondsRUs is not guilty of fraud since it appears that the firm is revealing the markup in its confirmation statements. The clients just aren't paying attention.
NEW QUESTION # 67
Which of the following is not a prohibited practice for a broker-dealer?
- A. requiring that a client who is engaged in margin transactions leave the securities with the broker-dealer
in "street name" - B. recommending a security to a new client without first ascertaining that client's level of risk tolerance
- C. executing a trade for an account holder based on instructions from the account holder's spouse
- D. waiting 36 hours before mailing a check after receiving a request for a cash withdrawal from a client if
the client has that much cash available in his account
Answer: A
Explanation:
It is not prohibited for a broker-dealer to require that a client who is engaging in margin
transactions to leave the securities with the broker in "street name." This is the normal business practice.
A margin transaction means that the client is borrowing part of the funds he's investing, and the securities
are serving as collateral for the loan. It is illegal to delay sending a check upon receiving a request for a
cash withdrawal, assuming the client has the cash available in his account; to recommend a security to a
client without knowing anything about him, including his tolerance for risk; and to execute a trade on
instructions from anyone other than the account holder unless that party has at least limited power of
attorney.
NEW QUESTION # 68
After passing the necessary exams, you must submit which of the following to the state Administrator when applying for registration as an agent?
- A. proof that you meet the state's minimum net capital requirement
- B. a recent photograph of yourself
- C. U-4
- D. Form ADV
Answer: C
Explanation:
Explanation
When applying for registration as an agent, you will need to submit a U-4. No photograph is necessary. Form ADV is used to register as an investment adviser, and only broker-dealers and investment advisers must meet the state's minimum net capital requirement.
NEW QUESTION # 69
......
Updated Verified Series63 Q&As - Pass Guarantee: https://www.actual4dumps.com/Series63-study-material.html
Series63 Practice Exam Dumps - 99% Marks In FINRA Exam: https://drive.google.com/open?id=1Sv6NJszmwxegR91hL7hmi9wPowSL4iqI