NASAA Certification Series 63 Exam Dumps

1. The Uniform Securities Act (USA) is

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

3. Which of the following securities would not necessarily be exempt from state registration?

4. 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?

5. Jack is employed by NewCorp, which is engaging in an initial public offering (IPO).

Jack will need to register as a sales representative if he:

6. Blue Sky Laws are designed to:

7. An individual who represents a broker-dealer in the buying and selling of securities is called a(n):

8. Which of the following statements best explains the difference between an agent and a broker-dealer?

9. Rich Writewell wants to begin publishing an independent weekly financial newsletter that will provide investment recommendations as well as other financial news items to the general public. Rich hopes that his newsletter will achieve nationwide circulation within a few months.

Which of the following statements is true?

10. Erin is a registered agent who works for SecureMoney Brokers-dealers. One of her clients, Mrs. McTurk, is a recently-widowed woman who relies on Erin for advice about her investment portfolio. Mrs. McTurk reminds Erin of her own grandmother, and she is happy to provide guidance within the sphere of her own knowledge.

Based on these facts, which of the following statements is true?

11. Which of the following would not fall under the classification of “institutional investor”?

12. Which of the following is an example of a non-issuer transaction?

13. Which of the following is not considered to be a security, as defined by the Uniform Securities Act (USA)?

14. Which of the following scenarios would not be considered a “sale,” as defined by the Uniform Securities Act (USA)?

I. Yoshito owned shares of Minnow Corporation and received shares of Whale Corporation from Whale when it merged with Minnow.

II. Olivia’s uncle, an agent with SecureMoney Brokers, sold Olivia ten call options on the stock of Microsoft.

III. Hans purchased a bond of Indebted Corporation that had detachable warrants and subsequently sold the warrants.

IV. Tom pledged some shares of stock he owned personally to secure a business loan for his company.

15. 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)?

16. Although an Administrator has broad powers, he or she cannot:

17. “Federal covered securities” were defined and exempted from state registration requirements by the:

18. Rich Quick is a broker-dealer licensed in the state of Massachusetts and has offices only within the state. Two of Rich Quick’s clients regularly vacation in Florida during the winter months, and Rich Quick executes trades for them when they call him from out-of-state.

Based on these facts,

I. Rich Quick needs to register as a broker-dealer in the state of Florida as well.

II. Rich Quick needs to register only as an agent in the state of Florida.

III. Rich Quick needs to establish an office in the state of Florida in order to transact business.

IV. Rich Quick need not register in Florida.

19. Most individual state securities laws today are based on:

20. BigCash Broker-Dealers is registered in the state and is in the process of purchasing a smaller broker-dealer, Target Investments, as a subsidiary. Target Investments is also registered in the state.

After completing the purchase, what actions must BigCash take regarding registration of its new subsidiary?

21. In order to maintain its registration with a state, a broker-dealer may be required to:

I. take a written or oral exam.

II. pay an annual filing fee.

III. maintain a minimum net capital.

IV. file all advertising material with the Administrator.

22. Once a broker-dealer has applied for and been granted state registration, the registration remains valid

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

24. 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)?

25. Joe Romeo is a broker-dealer registered with the state. He has recently hired Betty Buxom as his administrative assistant. As part of her duties, he has given her the responsibility for effecting the purchases and sales of securities for some of his firm’s smaller accounts. Ms. Buxom has never applied for nor been granted registration as a broker-dealer or agent. Based on these facts,

26. Until yesterday Maddie was a registered agent employed by the broker-dealer, QuikDeals. Yesterday afternoon, issues that had been brewing between her and another employee of the firm came to a head, and Maddie impulsively quit her job.

At this point,

27. Maddie, a registered agent affiliated with broker-dealer QuikDeals, quit her job on the spur of the moment.

Under the guidelines of the Uniform Securities Act (USA), who is responsible for notifying the Administrator?

28. Trevor is currently a registered agent in the state of Connecticut where he has been employed by Connect & Company, a broker-dealer that is registered in Connecticut and has subsidiary operations in Massachusetts, New Jersey, and New York. Trevor has moved to Massachusetts and is now associated with one of Connect’s subsidiaries, a broker-dealer registered in the state. Trevor has applied to the Administrator of Massachusetts for registration as an agent.

Can Trevor execute purchases and sales for clients while his registration is still pending?

29. Ms. Ding is an administrative assistant to the manager of a mutual fund. Most of her day is spent entering data onto a spreadsheet for her boss and answering phone calls. Some of the calls require her to provide information about the some of the fund’s financial aspects, such as its closing net asset value on the previous day.

What type of registration does Ms. Ding require in order to perform her duties?

30. Which of the following statements about agents is (are) false?

31. Which of the following entities must sign a “consent to service of process,” thereby allowing the Administrator to receive legal documents that are meant to be served to the entity in place of that entity?

I. agents

II. investment advisers

III. investment adviser representatives

IV. broker-dealers

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

33. The 2003 NASAA Model Rule requires that investment advisers that are not federal covered maintain their records for at least

34. Individual states are prohibited from requiring a broker-dealer or investment adviser to file financial reports more frequently than:

35. A-2-Z Associates advertises itself as a full service brokerage firm that will buy and sell securities for its clients, as well as provide investment advice to them. Its brochure provides a variety of plans to which a client can subscribe. The basic plan is the cheapest and allows the client a maximum number of trades per month for a specified fee. Another, slightly more expensive, plan provides the client with the same maximum number of trades per month, but the client also receives a personalized quarterly review of his portfolio along with advice for restructuring his portfolio based on such factors as current market conditions and specific industry or company information. The most expensive plan is one in which the client is assigned to an individual portfolio manager, who will take total responsibility for the asset allocation of the client’s portfolio and will provide the client with monthly reports.

Based on the services A-2-Z provides, it must register with the state as:

36. MoeMoney Investment Advisers, LLC is registered in the state of Texas, and its three offices are all located in the greater Dallas-Fort Worth area. Five of its clients-all individuals-have relocated to Colorado and all have indicated a desire to retain the services of MoeMoney. In order for this to be possible,

37. Sam Shade had his agent’s license revoked by the state of Washington for repeatedly making misleading claims about various investment to investors. He had had it with all the rain anyway and decided to move to the sunshine state of Florida. His brother-in-law was a computer whiz who made money on the side (more than his day job provided, in fact) by supplying illegal immigrants with official-looking documentation, including social security numbers. Sam Shade became Ian Creed in a few clicks of the mouse. As Ian Creed, Sam was hired by Sunny Investment Advisers, an investment adviser firm located in the Florida Keys, in a clerical role. As such, Sam/Ian had access to the confidential information of the firm’s clients, which he and his brother-in-law utilized for the purpose of identity theft. Under the Uniform Securities Act guidelines, when Sam and his brother-in-law are caught in their illegal activities,

38. Which of the following statements regarding an investment adviser representative who has an office in the state is true?

39. A variable annuity is:

40. Which of the following is not a security, as defined by the Uniform Securities Act?

I. an option contract

II. a futures contract on gold

III. a 401K plan

IV. a variable annuity

41. An arrangement wherein a terminally ill person sells a second party his life insurance policy at a discount from its face value, giving the buyer the right to the policy’s face value when the seller dies is called a:

42. 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?

43. Assuming the security is not registered under the Uniform Securities Act, which of the following would not be exempt from state registration?

44. Under the Uniform Securities Act, which of the following does not need to be included when filing to register a security issue with the state?

45. For how long after the effective date is a security’s registration valid?

46. A “notice filing” refers to

47. Under the 2002 Uniform Securities Act, registration by coordination allows:

48. Newbie Corporation is considering the possibility of an interstate initial public offering (IPO) of its stock. In the initial meetings with BigFee Investment Bankers, Newbie has learned that the underwriting spread will be 15%. Although the actual offering price won’t be set until Newbie’s registration statement is approved by the SEC, BigFee has indicated that the offer price will probably be between $3 and $4 a share and that the stock will initially be listed on the OTC Bulletin Board.

What methods for state registration does Newbie have available?

I. registration by coordination

II. registration by notification

III. registration by qualification

49. Which of the following is not one of the criteria for a security to be eligible for registration by notification?

50. Assuming there is not a stop order or a proceeding pending, under the registration by coordination process a security’s registration with the state becomes effective:

51. Which of the following is not a method that can be used to register securities with the state?

52. Which of the following statements regarding “registration by qualification” is true?

53. Kevin has a pair of season tickets to the Boston Red Sox games. He and his wife can’t attend all the games themselves, so Kevin has created “packages” of eight games each that he is listing for sale on Craig’s List.

Do these “packages” meet the definition of securities, and, if so, does Kevin need to register them with the state before offering them for sale?

54. Which of the following securities would be exempt from state registration requirements, according to the Uniform Securities Act?

I. a municipal bond issued by the Canadian province of Nova Scotia

II. a bond issued by the county of Cork, Ireland

III. a bond issued by Nationwide Insurance Company

55. Which of the following would be considered an “issuer” transaction?

56. While on vacation in Colorado, Mr. Moneybags became interested in the stock of a company called SafeAway, which designs and installs customized high-tech security systems in the multimillion dollar mansions located in Colorado’s pricier ski resort areas, such as Vail and Aspen. Upon returning to his home in Boston, he calls his broker-dealer with an order to purchase 10,000 shares of the stock, which he learned trades in the over-the-counter market. Fast Eddie, a registered agent with his broker-dealer, discovers that SafeAway’s stock is registered only in the states of Colorado and Wyoming. Neither Fast Eddie nor his broker-dealer are registered to do business in either of those states. Under these circumstances,

57. Nancy’s Aunt Ethel died, making Nancy executrix of her estate. In going through Aunt Ethel’s belongings, Nancy discovered some stock certificates that she learned had been issued by a small New Jersey firm that was still in business. The problem lay in the fact that Nancy’s Aunt Ethel had moved from New Jersey to Florida years ago, and the stock is registered only in the state of New Jersey. Nancy herself is a resident of Massachusetts.

What does Nancy have to do in order to sell this stock?

58. Which of the following describes an “exempt security,” as defined by the Uniform Securities Act (USA)?

59. Which of the following persons falls under the definition of “broker-dealer,” as defined by the Uniform Securities Act (USA)?

60. Which of the following persons would not be required to register with the state as an agent under the guidelines of the Uniform Securities Act (USA)?

61. Treadwater Bank and Trust is selling a portfolio of municipal bonds it owns to the SafeRisk Insurance Corporation. Under the Uniform Securities Act (USA), in this transaction Treadwater is defined as a

62. Under the Uniform Securities Act (USA), the term “investment adviser” does not apply to

I. an investment advisory firm owned and operated by a sole proprietor.

II. a bank or savings institution.

III. an investment adviser representative.

IV. a broker-dealer or its agents if the advice is incidental to the business although there is a nominal charge for any specific investment advice given.

63. Which of the following statements regarding the registration of broker-dealers and investment advisers is true?

64. Under the Uniform Securities Act (USA), which of the following statements would be disallowed?

65. Which of the following would meet the requirements for an “exempt security?”

66. Which of the following describes an investment adviser that is not required to register with the state Administrator?

67. The state official who has regulatory authority over the securities industry within the state is known as the

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

69. Which of the following orders can an Administrator issue without providing prior notice?

70. It has come to the attention of the Administrator of the state that Samuel Shyster provided false information on his application to become a registered investment adviser with the state.

Prior to revoking Samuel’s license, the Administrator will provide Samuel with which of the following?

I. prior notice

II. an opportunity to fill out a new registration statement

III. an opportunity for a hearing

IV. a written statement regarding the facts and the legal consequences