Online Access Free Series63 Exam Questions

Which of the following describes an "exempt security," as defined by the Uniform Securities Act (USA)?

• A.An exempt security is any security that is being sold by an institutional investor, such as a bank, to another institutional investor, such as another bank or an insurance company.
• B.An exempt security is any security that is being sold in an isolated non-issuer transaction.
• C.An exempt security is any security being sold as a private placement.
• D.An exempt security is one that need not be registered in the state in which it is sold.

Which of the following actions is the Administrator of a state empowered to take?

• A.require restitution for the victims of a scam
• B.The Administrator of a state has the authority to take all of the above actions.
• C.impose civil penalties in cases of fraud
• D.gather evidence

When selling shares of an investment company to a client, an agent must provide the client with
I. the fund's prospectus, which provides information on any loads or other fees as well as historical return information.
II. information about any breakpoints if it is a load fund along with an explanation of a letter of intent III. information regarding the investment adviser used by the fund IV. an explanation of the various loads and fees outlined in the fund's prospectus

• A.I, II, III, and IV
• B.I, II, and III only
• C.I and II only
• D.I, II, and IV only

Needy Investment Advisers, LLC needs a loan. One of its wealthier clients has offered to lend the firm the money at the prime rate of interest. A promissory note is drawn up stipulating the terms of the loan. Based on these facts,

• A.Needy will be in violation of securities laws unless a waiver of compliance form is signed by the client and submitted to the administrator.
• B.Needy is in violation of securities laws only if the face value of the note is for $50,000 or more.
• C.Needy is not in danger of violating any securities laws since the loan was unsolicited and has been properly executed via a promissory note.
• D.Needy is in violation of securities laws by acting as an issuer of securities.

Moe is a registered investment adviser doing business under the name of MoeMoney Investment Advisers, LLC. Larry, Curly, and Mary all hold positions with the firm. Larry is on the board of directors; Mary is a sales representative for the firm; and Curly is an administrative assistant, who performs clerical duties.
Given that Moe is already a registered investment adviser, which of the other three are automatically registered as investment adviser representatives?

• A.Mary and Curly only
• B.Larry and Mary only
• C.Larry, Mary and Curly
• D.Larry only