Online Access Free Series_63 Exam Questions

Which of the following would be considered an "issuer" transaction?

• A.Maria purchases 500 shares of Dodge and Cox's International Fund, a mutual fund investing in foreign
  securities.
• B.Jacob calls his broker and places an order to purchase 100 shares of Hasbro, Inc. on the open market.
• C.None of the above is an "issuer" transaction.
• D.Kim sells an AT&T bond she holds that still has three years remaining to maturity.

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 is not in danger of violating any securities laws since the loan was unsolicited and has been
  properly executed via a promissory note.
• 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 in violation of securities laws by acting as an issuer of securities.
• D.Needy will be in violation of securities laws unless a waiver of compliance form is signed by the client
  and submitted to the administrator.

A broker-dealer is required to keep his records for how long?

• A.A broker-dealer is required to keep his records for as long as he is registered in the state.
• B.at least three years
• C.at least five years
• D.at least seven years

Jeremy Sly considered himself somewhat of an inventor. The only problem was that his day job interfered
with his opportunity to exercise his creativity. He came up with a plan to get outside investors to support
his inventive activities. To this end, he produced and distributed a brochure advertising partnership
interests with a guaranteed return on investment of at least 15% after the first 12 months, based on what
he had allegedly generated from his other (non-existent) inventions. Given these facts, is Jeremy guilty of
any security violations under the Uniform Securities Act (USA)?

• A.No. An interest in a partnership is not considered a security.
• B.No. The facts don't indicate whether any partnership interests were actually sold, and there can be no
  violation unless there is a sale.
• C.No. It is not against the law to believe in oneself and promote one's ideas.
• D.Yes. Even an "offer" to sell securities must not contain any untruths.

Which of the following statements regarding an open-end investment company is not true?

• A.Its securities are federal covered.
• B.Its shares may sell for either net asset value or greater than net asset value, but not below
• C.Its shares are bought and sold on exchange floors.
• D.Its shares are bought and sold through the company.