Series 63 Domain 1 (Quiz 3): Regulation of Investment Advisers including state-registered and federal covered advisers

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Domain 1 (part 3): Regulation of Investment Advisers including state-registered and federal covered advisers. (25 questions)

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Series 63, Regulation of Investment Advisers including state-registered and federal covered advisers,Series 63

Under the Uniform Securities Act, the definition of person includes which of the following? I. An unincorporated investment club II. An individual who buys and sells securities only for his own account III. Associations and partnerships whether or not they issue certificates IV. The U.S. government

A) III and IV

B) I and II

C) II and III

D) I, II, III, and IV

None

Series 63, Regulation of Investment Advisers including state-registered and federal covered advisers,Series 63

Magnum Manufacturing Company (MMC) wishes to raise capital through a public offering of its common stock. When filing the required paperwork with the Administrator, MMC is legally referred to as

A) the registrant.

B) the petitioner.

C) the filer.

D) the applicant.

None

Series 63, Regulation of Investment Advisers including state-registered and federal covered advisers,Series 63

A registered broker-dealer committing which of the following would be most likely to face criminal charges?

A) Unethical behavior

B) Hiring unlicensed agents

C) Prohibited activity

D) Fraud

None

Series 63, Regulation of Investment Advisers including state-registered and federal covered advisers,Series 63

Which of the following can only be a natural person?

A) A limited liability company (LLC) with only one member

B) A city

C) An agent

D) A business trust

None

Series 63, Regulation of Investment Advisers including state-registered and federal covered advisers,Series 63

Mammoth Corporation owns a controlling interest in five different corporations in diversified industries. Mammoth is most likely

A) a holding company.

B) a mutual fund.

C) a hedge fund.

D) a bank.

None

Series 63, Regulation of Investment Advisers including state-registered and federal covered advisers,Series 63

The Financial Industry Regulatory Authority functions as

A) a stock exchange.

B) a federal government regulatory agency.

C) an educational organization.

D) an SRO.

None

Series 63, Regulation of Investment Advisers including state-registered and federal covered advisers,Series 63

Which types of accounts are billed a single fee that includes a group of services such as, execution of transactions and advice?

A) Margin account

B) Discretionary account

C) Option account

D) Wrap fee account

None

Series 63, Regulation of Investment Advisers including state-registered and federal covered advisers,Series 63

Under the Uniform Securities Act (USA), a person is best defined as

A) an adult human being.

B) a party that is subject to federal income tax.

C) an individual or entity considered able to enter into an enforceable contract.

D) a human being.

None

Series 63, Regulation of Investment Advisers including state-registered and federal covered advisers,Series 63

A broker-dealer would most likely hire an agent to

A) sell securities to clients.

B) implement the firm's new recordkeeping program.

C) engage in marketing for the broker-dealer.

D) solicit for advisory clients.

None

10.

Series 63, Regulation of Investment Advisers including state-registered and federal covered advisers,Series 63

A natural person with at least $5 million in investments meets the definition of

A) a qualified purchaser.

B) an accredited investor.

C) an institutional investor.

D) a qualified client.

None

11.

Series 63, Regulation of Investment Advisers including state-registered and federal covered advisers,Series 63

XYZ Partners, Ltd., is in the business of providing advice on securities for compensation. Under the Uniform Securities Act, this firm would be considered

A) an agent.

B) an investment adviser.

C) a limited partnership.

D) a broker-dealer.

None

12.

Series 63, Regulation of Investment Advisers including state-registered and federal covered advisers,Series 63

As defined in the Uniform Securities Act, the term person includes all of the following except

A) a city.

B) a limited partnership.

C) a corporation.

D) a minor.

None

13.

Series 63, Regulation of Investment Advisers including state-registered and federal covered advisers,Series 63

The regulators recognize that certain investors need more protection than others. Those investors are generally called

A) accredited investors.

B) retail investors.

C) institutional investors.

D) new investors.

None

14.

Series 63, Regulation of Investment Advisers including state-registered and federal covered advisers,Series 63

Under the Uniform Securities Act, a broker-dealer is defined as any person who

A) is registered with the SEC.

B) is in the business of effecting securities transactions for his own account or for the accounts of others.

C) buys securities.

D) sells securities.

None

15.

Series 63, Regulation of Investment Advisers including state-registered and federal covered advisers,Series 63

The Uniform Securities Act would consider an agent's deliberate attempt to deceive a customer to be

A) deceit.

B) fraud.

C) prohibited.

D) unethical.

None

16.

Series 63, Regulation of Investment Advisers including state-registered and federal covered advisers,Series 63

If you were reading a legal document and saw the term de minimis, it would be referring to

A) the length of the agreement.

B) the length of the document.

C) an insignificant amount.

D) the amount of the sale.

None

17.

Series 63, Regulation of Investment Advisers including state-registered and federal covered advisers,Series 63

Certain securities may be sold without registration because of the way the sale takes place. When that is the case, it is

A) an excluded security.

B) an exempt transaction.

C) an excluded transaction.

D) an exempt security.

None

18.

Series 63, Regulation of Investment Advisers including state-registered and federal covered advisers,Series 63

A discussion referring to blue-sky laws would include all of the following except

A) federal laws such as the Securities Act of 1933 and Securities Exchange Act of 1934.

B) forms requiring issuers selling securities in the state to comply with state securities laws.

C) state laws that are designed to protect the public against fraud in securities sales within a state.

D) a state securities law that grants state securities Administrators the power to deny or revoke a broker-dealer's or an agent's registration within its state.

None

19.

Series 63, Regulation of Investment Advisers including state-registered and federal covered advisers,Series 63

A retail customer of an investment adviser has at least $1.1 million under management with that adviser. That would make this individual

A) a qualified client.

B) an institutional investor.

C) an accredited investor.

D) a qualified purchaser.

None

20.

Series 63, Regulation of Investment Advisers including state-registered and federal covered advisers,Series 63

Who receives the proceeds from a nonissuer transaction of a bond?

A) The seller

B) The beneficiary

C) The Administrator

D) The issuer

None

21.

Series 63, Regulation of Investment Advisers including state-registered and federal covered advisers,Series 63

Which of the following is responsible for the administration of the Uniform Securities Act in a state?

A) Executive department

B) Securities and Exchange Commission

C) The Administrator

D) State judiciary system

None

22.

Series 63, Regulation of Investment Advisers including state-registered and federal covered advisers,Series 63

Walter Mattingly is employed by a nationally known broker-dealer. Mattingly's job function is the filing of customer account forms. Mattingly is not registered with the state as an agent. The reason for this is most likely because he

A) qualifies for an exemption from registration as an agent.

B) is excluded from the definition of an agent.

C) is a part-time employee not requiring registration.

D) is in the process of studying for the exam.

None

23.

Series 63, Regulation of Investment Advisers including state-registered and federal covered advisers,Series 63

As defined in the Uniform Securities Act, which of the following is not a state?

A) New Mexico

B) Utah

C) Puerto Rico

D) Ontario

None

24.

Series 63, Regulation of Investment Advisers including state-registered and federal covered advisers,Series 63

As defined in the Uniform Securities Act, the term used to describe an agent of a broker-dealer attempting to dispose of a security to a customer is

A) an offer to sell.

B) a sale.

C) fraud.

D) a disposal attempt.

None

25.

Series 63, Regulation of Investment Advisers including state-registered and federal covered advisers,Series 63

Each of the following statements is true except

A) the state securities Administrator takes responsibility for the enforcement and administration of a state's securities law.

B) NASAA is responsible for the content of the Series 63 exam.

C) the National Securities Markets Improvement Act of 1996 (NSMIA) requires states and the federal government to have identical registration requirements.

D) the Uniform Securities Act is a template rather than the actual law of any state or territory of the United States.

None

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