Online Access Free Series_63 Exam Questions

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 not in danger of violating any securities laws since the loan was unsolicited and has been
  properly executed via a promissory note.
• C.Needy is in violation of securities laws by acting as an issuer of securities.
• D.Needy is in violation of securities laws only if the face value of the note is for $50,000 or more.

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.U-4
• C.a recent photograph of yourself
• D.Form ADV

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

• A.None of the above would fall under the definition of "agent," as defined by the Uniform Securities Act
  (USA.)
• B.TrustUs Bank has a subsidiary operation that sells mutual funds to the public.
• C.Freedom broker-dealers executes the purchase and sale of securities for its customers.
• D.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.

Today's edition of the Wall Street Journal carried a front page story regarding a federal lawsuit that has
been filed against a software manufacturer for monopolistic practices. The CFO of the company called his
broker today and sold some of the shares he owns in the company. Which of the following statements are
true?
I. The CFO is guilty of illegal insider trading.
II. If the agent who effected the transaction for the CFO knew he was CFO of the software company, the
agent is guilty of illegal insider trading.
III. The broker-dealer for whom the agent works may have its license suspended or revoked if its agent
has knowingly executed this illegal insider trade for not having supervised the agent properly.

• A.I only
• B.None of the statements is true.
• C.I and II only
• D.I, II, and III

Ken Con is an agent with Blue Sky Broker-Dealers. He gets up early each morning so that he can study
any late-breaking news that may affect the markets and figure out ways to incorporate this news into
conversations with select clients in order to pressure them to restructure their portfolios by selling
holdings they have in one particular industry to invest the money in another particular industry. Ken has
been very successful with this strategy and executes more trades for his clients than any other agent with
the firm, but is he in danger of losing his license?

• A.Yes. Ken is engaging in churning, a prohibited practice and can have his license revoked or
  suspended.
• B.Yes. Ken is guilty of the prohibited practice of "tailgating."
• C.It depends. If his clients have lost money, Ken may lose his license; but if a review indicates that his
  clients' accounts earn profits, then his license is safe.
• D.No. Ken is just a successful sales person who is working harder than the other agents in the firm.