SERIES 63 Exam Questions Answered Correctly Latest Update

SERIES 63 Exam Questions Answered Correctly Latest Update agent - Answers An individual who represents a broker/dealer or an issuer when selling or trying to sell securities to the investing public. This individual is considered an _____ whether he or she actually receives or simply solicits orders. Also known as "registered representatives." Two types of agents - Answers An individual who represents a broker dealer in effecting or attempting to effect securities transactions (an entrepreneur selling stock in his own company to raise capital An employee is not an agent - Answers selling to non-resident customers(30 day limit) selling to new residents (60 day limit) Not an agent working as an issuers - Answers Individuals who represent issuers of certain exempt securities ( US gov Individuals who represent issuers in exempt transactions(CFO selling bonds to institutional investors Individuals representing issuers selling only to qualified purchasers or selling private placements (under 33 act ) If you see a question about the issuer of a certificate of deposit, voting trust certificate or collateral trust certificate, look for the terms - Answers depositor or manager in the answer choices If you are asked who is the issuer of a certificate of interest or participation in oil, gas or mining titles or leases - Answers the answer is that there is no issuer RR must file an application to register in the state in which a client is now a resident within - Answers 10 business days of the later of: a transaction with the client in the new state or the discovery by the rr of the clients change in residence Agent application - Answers the applicants qualifications and business history any injunctions or administrative orders involving security any convictions for misdemeanors involving securities any felony convictions the applicants financial condition and history issuer - Answers According to the Uniform Securities Act, any person who issues or proposes to issue any security. When a corporation or municipality raises additional capital through an offering of securities, that corporation or municipality is the issuer of those securities. An issuer transaction also is called a primary transaction. historical performance - Answers may be shown to investors as long as proper disclosure is provided indicating that it DOES NOT predict future results. New resident exception to apply - Answers The rr must not be ineligible to register in the new state, The rr must be registered with a registered securities association and at least one state The RRs broker dealer must be registered in the new state If an agent leaves one broker dealer and becomes employed by another broker dealer - Answers all three parties have to notify the administrator In an agent terminates his employement with a broker dealer without going to a new dealer - Answers both have to notify administrator A minor is not considered a - Answers person broker/dealer - Answers any person engaged in the business of effecting transactions in securities for the account of others or for his own account. Who is not a broker dealer - Answers a bank, savings institution, or trust company, insurance companies an issuer, an agent a person that has no place of business in the state and deals only with broker dealers, institutional investors or the issue of the security involved in the transaction Broker dealer info - Answers a person engaged in the business of effecting securities transactions: for the account of others (a broker) or Its own account (a dealer Broker-dealer follow sec rules record retention for books and records - Answers 3 years retention 2 in an easily accessible location Broker dealer exceptions to record retention documents to be retained for six years - Answers principal designation records records of original entry trade blotters Broker dealer docs to be reatained for life - Answers stock certificates parnership papers articles of incorporation minutes of bod meetings Order ticket - Answers buy or sell name of security customers account number type of order being placed whether discrestion was used whether the trade was solicited or unsolicited Not on order ticker - Answers customers name A broker dealer books and records are subject at any time to such reasonable periodic special or other examinations as the - Answers administrator considers necessary or appropriate in the public interest or for the protection of investors. both in state and out of state selling away - Answers when a representative engages in private securities transactions without the knowledge or consent of his employer. commingling - Answers when a brokerage firm combines its securities with customer's securities (e.g., to present collateral for a bank loan). legal person - Answers an entity that can engage in legal activities such as signing contracts or opening accounts. These folks are not dead, minors, or people who have been declared mentally incompetent. promptly - Answers The time frame that agents as well as broker-dealers or issuers notify the Administrator when agents begin or terminate employment. December 31st, annually - Answers Registration for both agents and investment adviser representatives expires: administrator - Answers The official or agency administering the securities laws of a state. advertisement - Answers Any material designed for use by newspapers, magazines, radio, television, telephone recording or any other public medium to solicit business. anti-fraud rules - Answers Although exempt securities and securities sold in exempt transactions are exempt from the registration and advertising filing requirements of the Uniform Securities Act, no security or person is exempt from the ________________. associated person - Answers Any employee, manager, director, officer or partner of a member broker/dealer or another entity (issuer, bank, etc.) or any person controlling, controlled by or in common control with that member is considered an _____________________ of that member. State regulations governing the securities industry. - Answers Blue sky laws