TEAS English Language Usage: Knowledge of Language (Quiz 1) Welcome to your Series 63 Practice Quizzes. Note: We designed four (4) parts of practice quizzes for each Domain. Each part has 25 questions. Domain 4 (part 4): Regulations of Agents Broker-Dealers. (25 questions) Please click NEXTÂ to start your Free Series 63 Practice Quizzes right away. Best of Luck! 1. Series 63, Regulations of Agents Broker-Dealers,Series 63 The term agent as defined in the Uniform Securities Act, would not include which of the following individuals? A) One who represents a registered broker-dealer selling unregistered exempt securities B) One who represents a registered broker-dealer selling securities listed on the NYSE to individual clients C) One who represents an issuer in effecting exempt transactions D) One who represents an issuer of any exempt security None 2. Series 63, Regulations of Agents Broker-Dealers,Series 63 The Uniform Securities Act's definition of an agent excludes all of the following except A) an individual who is in the business of providing investment advice on behalf of his employer. B) a broker-dealer that charges a commission as a regular part of its business. C) an individual who supervises those who effect securities transactions for customers. D) a clerical person who files trade reports for the broker-dealer. None 3. Series 63, Regulations of Agents Broker-Dealers,Series 63 Under the Uniform Securities Act, an agent is A) an individual who represents an issuer in an exempt transaction. B) an individual representing a broker-dealer who sells federal covered securities. C) a broker-dealer who sells registered securities to the general public. D) an individual who represents an issuer in a transaction exempt from the act. None 4. Series 63, Regulations of Agents Broker-Dealers,Series 63 Which of the following employees of a registered broker-dealer is excluded from the definition of agent as stated in the Uniform Securities Act? A) Sally, the company president B) Suzie, who qualifies prospective customers based on a list of names supplied by several agents in the office C) Stuart, the company receptionist D) Sandy, who reviews and approves all orders at the end of the day None 5. Series 63, Regulations of Agents Broker-Dealers,Series 63 Which of the following would be required to register as an agent under the Uniform Securities Act? I. An officer of a broker-dealer who does not deal with customers or supervision of sales II. A director of a broker-dealer who is not involved in day-to-day operations III. A trader who is authorized to handle customer orders IV. An individual who makes cold calls to pre-qualify prospects and lets a principal in the firm handle all customer trades A) I, II, III, and IV B) III and IV C) I and IV D) I and III None 6. Series 63, Regulations of Agents Broker-Dealers,Series 63 As defined in the Uniform Securities Act, which of the following persons is included in the term agent? A) An individual who represents an issuer in an exempt transaction. B) An individual who sells to public investors the sovereign debt securities of a foreign government with which the United States has diplomatic relations in the capacity of an employee of that government C) An individual, employed by a broker-dealer, who sells NYSE-listed securities exclusively to institutional clients D) A broker-dealer who sells registered securities to the general public None 7. Series 63, Regulations of Agents Broker-Dealers,Series 63 Sarah has not yet passed the Series 63 exam. As Jack's assistant, Sarah has frequent telephone contact with Jack's customers, to whom she provides account information and current stock quotes. In this situation, Sarah is A) in violation of the Securities Act of 1933. B) in violation of the Securities Exchange Act of 1934. C) in violation of the Uniform Securities Act. D) not in violation of any applicable statutes. None 8. Series 63, Regulations of Agents Broker-Dealers,Series 63 Which of the following is required to have a Series 63 license? A) An issuer B) A broker-dealer C) An agent representing a broker-dealer when offering securities to the public D) An individual who is a silent partner of a broker-dealer None 9. Series 63, Regulations of Agents Broker-Dealers,Series 63 Which of the following would not be considered an agent under the Uniform Securities Act? A) A natural person who sells variable life insurance policies as an employee of a life insurance company authorized to do business in this state B) A broker-dealer who transacts business with the general public C) An individual who sells foreign securities required to be registered with the state D) An individual working for a broker-dealer who sells commercial paper to wealthy individuals None 10. Series 63, Regulations of Agents Broker-Dealers,Series 63 A broker-dealer limits its business to effecting transactions in securities that are exempt from registration with the state. The individuals representing that broker-dealer A) must obtain a limited agent registration. B) are not required to register as agents. C) must register as agents. D) may choose to register as agents. None 11. Series 63, Regulations of Agents Broker-Dealers,Series 63 Under the Uniform Securities Act, an agent is an individual representing A) a broker-dealer in the sale of bonds issued by a foreign government with whom the U.S. has diplomatic relations. B) the issuer in the sale of bonds issued by a foreign government with whom the U.S. has diplomatic relations. C) a savings institution that is organized and supervised under the laws of any state, in the sale of the institution's securities. D) the issuer in a transaction exempt from the act. None 12. Series 63, Regulations of Agents Broker-Dealers,Series 63 Which of the following would be eligible to register as an agent of a broker-dealer? A) Samuel Schwartz B) City National Bank C) Alpha Life Insurance Company D) Protective Securities, Inc. None 13. Series 63, Regulations of Agents Broker-Dealers,Series 63 Under the Uniform Securities Act, an agent of a broker-dealer registered in one state may transact business in another state in which he is not registered with which of the following? A) A resident of that state as long as the security is exempt from registration B) An existing client visiting the state for a 2-month period C) An existing client's brother who is a long-time resident of that state D) An existing client who established residency in that state less than 60 days ago None 14. Series 63, Regulations of Agents Broker-Dealers,Series 63 Under the provisions of the Uniform Securities Act, a securities agent may not A) be registered with a licensed real estate broker as well as with a licensed securities broker-dealer. B) accept an unsolicited order for an exempt security from a retail client of the broker-dealer who resides in a state in which the agent is not registered. C) be licensed by both an independent insurance company and a securities broker-dealer. D) be registered with two broker-dealers under common control. None 15. Series 63, Regulations of Agents Broker-Dealers,Series 63 An agent with a broker-dealer is suddenly called out of town on a personal family matter. While away, the agent's unregistered sales assistant receives a phone call from an existing client wishing to purchase 200 shares of a listed stock. What would be the most appropriate action for the sales assistant to take? A) Route the call to a licensed agent in the office. B) Accept the order because it is from an existing customer. C) Explain that the agent is out of town and ask the client to call back with the order next week. D) Accept and place the order because it is unsolicited. None 16. Series 63, Regulations of Agents Broker-Dealers,Series 63 Under the Uniform Securities Act, the term agent refers to individuals who act on behalf of a broker-dealer or issuer in effecting securities transactions. Which of the following individuals are not included in the definition of an agent? I. A lawyer acting on behalf of an issuer in preparing documents describing the issuance of nonexempt securities II. A lawyer acting on behalf of a broker-dealer who prepares documents describing the sales or purchase of securities to the general public III. A partner or officer of a broker-dealer whose only securities activity is the purchase of shares of an issuer for his personal investment account IV. An officer of an issuer who sells shares of the issuer's stock to employees without receiving any special compensation A) II, III, and IV B) I, II, III, and IV C) II and III D) I and III None 17. Series 63, Regulations of Agents Broker-Dealers,Series 63 Patrice is employed by ABC Securities, a registered broker-dealer. Patrice's sole responsibility is posting customer securities transactions to the blotter. As such, Patrice A) is defined as an agent but is exempt from registration because it is clerical work. B) must register as an agent because securities transactions are involved. C) would be defined as an agent if ABC Securities paid Patrice a year-end bonus based on the company's profits. D) is not defined as an agent. None 18. Series 63, Regulations of Agents Broker-Dealers,Series 63 Under the Uniform Securities Act, an officer who sells an issuer's nonexempt securities to the public is considered A) an agent of the issuer subject to registration. B) not to be an agent of the issuer but subject to civil penalties under the Uniform Securities Act. C) an agent of the issuer not subject to registration. D) not to be an agent of the issuer. None 19. Series 63, Regulations of Agents Broker-Dealers,Series 63 Registration as an agent would be required of a sales assistant who I. accepts unsolicited orders from clients. II. takes telephone messages for the registered agent. III. posts updates to client records. IV. solicits new clients for the firm. A) I and IV B) I and III C) III and IV D) II and III None 20. Series 63, Regulations of Agents Broker-Dealers,Series 63 Regarding the definition of an agent found in the Uniform Securities Act, which of the following statements is true? A) An agent may be an individual or a partnership. B) If someone meets the definition of an agent, that person is exempt from registration requirements. C) An agent may be a broker-dealer. D) An agent represents a broker-dealer or an issuer in effecting or attempting to effect purchases or sales of securities. None 21. Series 63, Regulations of Agents Broker-Dealers,Series 63 Under the Uniform Securities Act, an individual is not required to register as an agent if he represents any of the following issuers in the sale of their securities except A) any government with which the United States maintains diplomatic relations. B) a savings institution or trust company . C) the Canadian government, a province, or a municipality. D) a Canadian corporation. None 22. Series 63, Regulations of Agents Broker-Dealers,Series 63 Which of the following persons are included in the definition of an agent under the Uniform Securities Act? I. An individual who represents First Securities Brokers, Inc., in selling shares of XYZ Corporation, a New York Stock Exchange-listed company II. An individual who, as part of the job description, represents the City of Chicago in selling its bonds to the public III. An individual who represents First Securities Brokers, Inc., whose sole activity consists of selling individual investors securities issued by the U.S. government IV. An individual who is employed by the Federal Reserve Board to sell Treasury bills to retail investors A) II and IV B) III and IV C) I and III D) I and II None 23. Series 63, Regulations of Agents Broker-Dealers,Series 63 Under the Uniform Securities Act, an agent registered in one state may transact business in another state in which he is not registered with which of the following? I. An existing client visiting the other state for a 2-week period II. An existing client who moved to the other state 6 months ago III. An existing client who moved to the other state less than 30 days prior IV. An acquaintance from another state who requests that the agent execute transactions on his behalf A) II and IV B) II and III C) I and IV D) I and III None 24. Series 63, Regulations of Agents Broker-Dealers,Series 63 If an individual acting on behalf of an issuer engages in the sale of securities issued by a savings institution organized and supervised under the laws of any state, which of the following statements is true? A) The individual is engaging in a prohibited transaction. B) The individual is not required to be registered. C) The individual can only participate in this transaction with permission from the Administrator. D) The individual is acting as a broker-dealer and must be registered as a broker-dealer. None 25. Series 63, Regulations of Agents Broker-Dealers,Series 63 Which of the following must register as an agent? A) An individual representing a broker-dealer who sells commercial paper B) An individual who is paid a commission to sell FDIC-insured certificates of deposit for ABC National Bank C) An individual who sells commercial paper for ABC National Bank D) An employee of the Fed whose job is selling Treasury bonds to the public None 1 out of 25 Time is Up! Time's up
