Online Access Free Series63 Exam Questions

Which of the following would fall under the definition of "agent," as defined by the Uniform Securities Act (USA)?

• A.TrustUs Bank has a subsidiary operation that sells mutual funds to the public.
• B.Joe works as an administrative assistant for broker-dealer GetErDone, doing data entry, filing client forms that contain confidential information, and directing calls to registered representatives of the firm.
• C.None of the above would fall under the definition of "agent," as defined by the Uniform Securities Act (USA.)
• D.Freedom broker-dealers executes the purchase and sale of securities for its customers.

Which of the following may an investment adviser not use in an attempt to solicit new clients?

• A.a complete list of the stocks they have recommended in the past year, even if a statement is included that states that past performance is no guarantee of future performance
• B.a free initial consultation, with no obligation on the part of the potential client
• C.a free financial planning kit, with no obligation on the part of the potential client
• D.testimonials of satisfied clients

You are an investment adviser representative. Your client, Mr. I. M. Pulse, calls you with what he thinks is exciting news. He just passed a restaurant and saw Microsoft's Bill Gates having lunch with a local entrepreneur who owns a small firm in the computer software industry that trades on the OTC pink sheets. He is sure that this means Microsoft is negotiating a purchase of the smaller company and instructs you to take the cash balance in his account and buy shares of the local company. You should

• A.advise Mr. Pulse that he may be jumping the gun, but place the order if he insists.
• B.call your supervisor and alert him immediately of Mr. Pulse's attempt to have you place an illegal order on his behalf in case Mr. Pulse decides to place the order elsewhere.
• C.tell Mr. I.M. Pulse that this would be an illegal insider trade and that you are unable to fulfill his request.
• D.do both A and B.

Stable Corporation registered a bond issue that it plans to offer for sale in the state with the Administrator.
The bond has a par value of $1,000 and will pay interest of 7% a year, with the principal to be repaid in 5 years. The registration became effective on September 8th. The registration is effective

• A.for one full year.
• B.for two full years.
• C.until the maturity date on the bond.
• D.until December 31st of the same year

A hypothecation agreement refers to

• A.a document signed by a client indicating that he or she understands that some of the charts and examples presented in a broker-dealer's advertising literature are based on hypothetical trades.
• B.an agreement that a client must sign prior to executing any short sales with the broker-dealer.
• C.an agreement wherein a client gives his broker-dealer discretion to purchase securities that the broker-dealer deems appropriate in whatever quantity the broker-dealer feels appropriate and at a time and price the broker-dealer believes is a good deal.
• D.an agreement signed by a client who is executing a margin transaction that allows the broker to hold the margined securities in street name as collateral for the loan.