Feb 14, 2024 Newest Series63 Exam Dumps – Achieve Success in Actual Series63 Exam [Q27-Q48]

NEW QUESTION 27
“T + 3” refers to

the form, also known as a “trade ticket,” that is filled out when an order is entered into the market.

the form that is filled out and sent to the client confirming that the trade has been executed.

the fact that the settlement date will be three business days after the trade date, which is the “regular way settlement” for transactions involving stocks and corporate and municipal bonds.

a procedure to minimize the potential for money laundering.

NEW QUESTION 28
Mr. Bigwig, CEO of HiGrowth Corporation, meets with the president of BigFee Investment Bankers and
arranges for BigFee to underwrite an Initial Public Offering (IPO) for the firm. When the IPO comes to
market, GetErDone Broker-Dealers is part of the selling group, which handles the sale of the stock to the
public. In this scenario, which party is the issuer?

HiGrowth Corporation

Mr. Bigwig

BigFee Investment Bankers

GetErDone Broker-Dealers

NEW QUESTION 29
In which of the following cases is an investment adviser allowed to be compensated with a share of the
capital gains of the client’s portfolio?
I. The client is a mutual fund.
II. The client is a credit union.
III. The client is a private client whose minimum net worth is $1 million or more.
IV. The client is a private client who has at least $750,000 invested through the investment adviser.

I and II only

I, II, and III only

I, II, and IV only

none of the above. An investment adviser is never allowed to share in the capital gains earned on

NEW QUESTION 30
A bond issue has recently been registered with the state Administrator. Which of the following statements
are true?

An investor can feel secure in buying the bond because it has recently been registered, which means
that the state Administrator finds it to be of sound quality at this point in time.

The bond may now be offered for sale in the state.

The issuer may now offer this bond for sale, and any other bonds that the issuer may want to offer for
sale in the future will be able be sold after the issuer executes a notice filing.

Both A and B are true statements.

NEW QUESTION 31
You are a newly licensed agent and are making cold calls to generate business. According to the Telephone Consumer Protection Act of 1991 (TCPA), you may only place your calls between the hours of

8 a.m. and 9 p.m., based on your time zone.

8 a.m. and 9 p.m., based on your prospective customer’s time zone.

8 a.m. and 7 p.m., based on your prospective customer’s time zone.

8 a.m. and 7 p.m., based on the Pacific Time Zone.

NEW QUESTION 32
Which of the following would be an unsuitable recommendation for your 68-year-old client?

a Treasury Inflation Protected Security (TIPS)

a deferred annuity

an S&P 500 Index mutual fund

a high quality corporate bond fund

NEW QUESTION 33
Once you have passed the Series 63 examination, which entity must then approve your application to sell securities?

FINRA

NASAA

SEC

the state administrator

NEW QUESTION 34
Which of the following entities would be required to register with the state as a broker-dealer under the
guidelines of the Uniform Securities Act (USA)?

an underwriter with no offices in the state that is helping a firm that is incorporated within the state with
the sale of its new bond issue to insurance companies

a credit union that operates within the state and provides loans to its members

an agent who executes the purchase and sale of stocks and bonds for his clients

None of the above entities would be required to register with the state as a broker-dealer under the
guidelines of the Uniform Securities Act.

NEW QUESTION 35
Mr. Noah Scruples is a registered representative with CanDo Broker-Dealers. A client calls and wants Noah to purchase shares of a mutual fund the client has read about. CanDo is not authorized by this particular fund to effect purchases or sales of the fund shares.
Can Noah execute the order anyway?

No. This would be considered money laundering, which is highly illegal.

No. This is a prohibited practice known as selling away.

No. This is a prohibited practice known as front running.

Yes. Since this is an unsolicited trade, Noah can execute the transaction on behalf of his client.

NEW QUESTION 36
Which of the following is a security as defined by the Uniform Securities Act (USA)?

a debenture

a futures option contract on wheat

a term life insurance policy

Both A and B are securities as defined by the Uniform Securities Act.

NEW QUESTION 37
Which of the following does not need to be included in an investment advisory contract?

the term of the contract

the total amount of money that the investment adviser currently has under management

the advisory fees and the formula used to compute them

a statement that the contract cannot be assigned to another party without the client’s consent

NEW QUESTION 38
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

I, II, III, and IV

I, II, and III only

I and II only

I, II, and IV only

NEW QUESTION 39
Which of the following is not a method that can be used to register securities with the state?

registration by exception

registration by notification

registration by coordination

registration by qualification

NEW QUESTION 40
The maximum monetary civil liability that a person who has violated a securities law can be expected to
pay is

the original investment + a state-deemed appropriate interest rate + court costs and reasonable
attorneys’ fees + any state-determined “pain and suffering” award.

the original investment + a state-deemed appropriate interest rate + court costs and reasonable
attorneys’ fees + any state-determined “pain and suffering” award – any income the victim has received on
the investment.

the original investment + a state-deemed appropriate interest rate + court costs and reasonable
attorneys’ fees – any income the victim has received on the investment.

the original investment + a state-deemed appropriate interest rate + court costs and reasonable
attorneys’ fees + any income the victim has received on the investment.

NEW QUESTION 41
Ms. Naivete gave Mr. Smooth, owner of Smooth Construction, $40,000 in return for a promissory note that
promised to pay interest at the rate of 8% a quarter, with a repayment of principal at the end of two years.
The money would be used by Mr. Smooth to rehab a few beach condo units that had been severely
hurricane-damaged and that Mr. Smooth had been able to purchase for “pennies on the dollar,” or so he
said. The first units would be completed within a month, and the rents would be used to make the interest
payments. The investment was almost as risk-free as U.S. government bonds, Mr. Smooth claimed. By
the end of the second year, Ms. Naivete had received a lot of fast talk and only one of the promised
interest payments. Have there been any violation of securities laws in this instance?

No. This was simply a loan transacted between two parties.

Yes. Mr. Smooth was required to register the promissory note before he offered it for sale.

Yes. Ms. Naivete has been defrauded by Mr. Smooth.

Both B and C are true statements.

NEW QUESTION 42
Carrie is a registered agent employed by CanDo Broker-Dealers. Her uncle is a minister who regularly
refers his parishioners to Carrie, in return for which Carrie has agreed to donate a quarter of her
commissions from these transactions to the parish. Is Carrie doing anything illegal?

No. Carrie is just donating some of her commissions back to the church, and transactions with

Yes. Carrie is splitting her commissions with an entity that is not affiliated with her broker-dealer

It depends. As long as the church parishioners are aware of the arrangement between Carrie and

It depends. If the church itself is a client of CanDo’s, then it is considered to be affiliated with

NEW QUESTION 43
In its capacity as a full service broker, A-2-Z Associates is also in the investment advisory industry,
charging its clients for investment advice for additional remuneration. One of the firm’s clients has been
advised to buy some U.S. government treasury inflation-protected securities (TIPS.) A-2-Z is a dealer in
these securities in the secondary market. Which of the following statements is true?

Under no circumstances may A-2-Z sell the client TIPS that A-2-Z holds in its own portfolio. This would
be a conflict of interest.

A-2-Z can sell the client TIPS from its own portfolio as long as it tells the client that it is taking on the
part of the seller in the transaction.

A-2-Z can only sell the client TIPS if it informs the client it is acting as the seller in this transaction and
receives the client’s written consent before the transaction is settled.

A-2-Z can sell the client TIPS indirectly by getting a 3rd party-another broker-dealer-to effect the sale.

NEW QUESTION 44
No: 93
The net worth of a broker-dealer has fallen below the minimum net capital requirement specified by the state in which the broker-dealer is registered. This broker-dealer must notify the Administrator of this fact

before the beginning of the next quarter.

before the end of the month.

by the close of business on the next business day.

within a week’s time.

NEW QUESTION 45
Which of the following documents must a broker-dealer deliver on or prior to the confirmation due date to a client who is purchasing a security?

a margin agreement if the purchase is being made on margin

a final prospectus

a preliminary prospectus

a hypothecation agreement

NEW QUESTION 46
Which of the following is an example of commingling?

Sly is an agent with a broker-dealer who recently executed a stock purchase for his client and had the
client make the check for the purchase out to Sly for deposit in Sly’s broker-dealer account.

In order to generate more commissions for herself Ms. Fox makes trades on some of her client’s
accounts and has the trade confirmations sent to a P.O box she owns.

Mr. Hawk encourages his clients to leave their securities in “street name” with the broker-dealer for
which Mr. Hawk works.

All of the above are examples of commingling.

NEW QUESTION 47
Which of the following does not describe a prohibited practice for investment advisers?
I. The adviser sells its non-institutional clients securities that it has issued.
II. The adviser makes a discretionary trade for a client after receiving verbal authorization only and does
not receive written authorization from the client within 10 business days of doing so.
III. The investment adviser requires an advisory fee of $300 to be paid in advance at the beginning of
each quarter.

None of the selections describe prohibited practices.

I only

I and III only

II and III only

NEW QUESTION 48
John Ketchum is an investment adviser representative with Load Investment Advisers, which has a family
of load funds that it encourages its representatives to promote. Representatives of the firm that sell
shares in these funds to their clients receive a greater share of the load than they do if they sell load funds
offered by other firms. Based on these facts, which of the following statements is true?

John is obligated to try to sell his clients the funds offered by Load first since he is affiliated with them
and has a fiduciary responsibility to them.

John must provide his clients with a written disclosure that he will receive a greater remuneration for
selling shares in the Load family of funds than if he sells them shares in other funds before he provides his
clients with any investment advice.

If, after reviewing the information form a client has filled out, John believes that one of Load’s funds is
an appropriate investment, John can recommend that the client invest in that fund. There is no disclosure
requirement necessary if the recommendation is a sound one that can be proved to be based on the
client’s specific situation.

Both A and B are true.

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