TEAS English Language Usage: Knowledge of Language (Quiz 2) 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 5 (part 1): Regulation of Securities and Issuers​​​​​​​. (25 questions) Please click NEXT to start your Free Series 63 Practice Quizzes right away. Best of Luck! 1. Series 63, Regulation of Securities and Issuers,Series 63 A study of the Uniform Securities Act would reveal that not included in the definition of a security would be A) preferred stock in the Colonel Corn Processing Corporation. B) common stock in the Shining Silver Mining Company. C) whole life insurance policies issued by the Dividend Mutual Life Insurance Association of America. D) debentures issued by the XYZ Retirement Planning Company. None 2. Series 63, Regulation of Securities and Issuers,Series 63 As defined in the Uniform Securities Act, which of the following is not a security? A) A preorganization certificate B) A bond whose interest payments are guaranteed by a state government C) $10,000 worth of gold ingots D) Treasury stock None 3. Series 63, Regulation of Securities and Issuers,Series 63 All of the following are correct statements when referring to a nonissuer transaction except A) it does not benefit the issuer. B) it is a secondary transaction. C) it is between two persons on a stock exchange or over the counter. D) it must take place in the over-the-counter market rather than on the floor of an organized stock exchange. None 4. Series 63, Regulation of Securities and Issuers,Series 63 In the Howey decision, the U.S. Supreme Court held that a security must represent A) personal interest in a business. B) debt in a publicly traded corporation whose managers are engaged in commercial activity. C) an investment of money in a common enterprise with the expectation of profit from the efforts of the investor. D) an investment of money in a common enterprise with the expectation of profit from the managerial efforts of others. None 5. Series 63, Regulation of Securities and Issuers,Series 63 Which of the following are not classified as securities under the Uniform Securities Act? A) Options on commodities futures B) Options on stocks C) Commodities futures D) Stocks None 6. Series 63, Regulation of Securities and Issuers,Series 63 As defined in the Uniform Securities Act, which of the following items is not a security? A) A voting trust certificate B) An interest in a cattle feeding program organized as a limited partnership C) An American depositary receipt (ADR) D) A whole life insurance contract issued by an incorporated life insurance company having its shares trade on the New York Stock Exchange (NYSE) None 7. Series 63, Regulation of Securities and Issuers,Series 63 A primary issue is A) a secondary market transaction in a security recently offered to the public. B) the first transaction between two parties in the over-the-counter market. C) a sale between investors of securities traded on the New York Stock Exchange. D) a new offering of an issuer sold to investors. None 8. Series 63, Regulation of Securities and Issuers,Series 63 Which of the following is not a security? A) Treasury stock B) Commercial paper with less than 270 days to maturity C) Limited partnership in a cattle breeding program D) A condominium purchased as a primary residence None 9. Series 63, Regulation of Securities and Issuers,Series 63 As defined in the Uniform Securities Act, which of the following is not a security? A) A listed stock option B) A fixed annuity C) A bond whose interest payments are guaranteed by the federal government D) A debenture None 10. Series 63, Regulation of Securities and Issuers,Series 63 Which of the following is an example of a nonissuer transaction? A) Private placement by an issuer B) Primary issue of corporate stock C) Secondary offering by an institutional seller D) Preemptive rights offering None 11. Series 63, Regulation of Securities and Issuers,Series 63 An interest in which of the following is a security under the Uniform Securities Act? I. Merchandising marketing scheme II. Multilevel distributorship arrangement III. Oil and gas drilling program IV. Cattle feeding program A) I, II, III, and IV B) II and III C) I only D) III only None 12. Series 63, Regulation of Securities and Issuers,Series 63 As defined in the Uniform Securities Act, which of the following is not a security? A) Variable life insurance policy B) Preferred stock C) Corporate bond D) Term life insurance policy None 13. Series 63, Regulation of Securities and Issuers,Series 63 Which of the following are defined as securities under the Uniform Securities Act? I. An investment in a managed pool of rental condominiums II. Unsecured debentures sold in a private placement only to accredited investors III. Bills, notes, and bonds issued by the US Treasury IV. A Roth IRA A) I and II B) II and IV C) I and III D) I, II, and III None 14. Series 63, Regulation of Securities and Issuers,Series 63 Under the Uniform Securities Act, all of the following are securities except A) a trade confirmation for the purchase of 100 shares of a listed common stock. B) a put or call traded on a national exchange relating to foreign currency. C) a bank-issued certificate representing an interest in a foreign security. D) a real estate investment trust. None 15. Series 63, Regulation of Securities and Issuers,Series 63 As defined in the Uniform Securities Act, which of the following is not a security? A) A fixed annuity B) A debenture C) A transferable share D) A corporate bond None 16. Series 63, Regulation of Securities and Issuers,Series 63 Under the Uniform Securities Act, the definition of issuer includes A) a specialist on the floor of an exchange. B) an officer or a director of a company traded at the NYSE. C) a person proposing to issue a security. D) a market maker for publicly traded securities. None 17. Series 63, Regulation of Securities and Issuers,Series 63 The United States Supreme Court ruled in the Howey decision that an instrument that represents the investment of money in a common enterprise with an expectation of profit solely through the managerial efforts of others is a security. In following the Howey decision, the Uniform Securities Act would consider which of the following a security? A) Investment in options to acquire a security B) Investment in commodities futures C) Purchase of a house in a desirable real estate market with the expectation that the house will be resold at a profit within a few years D) Purchase of jewelry for speculative purposes as opposed to personal use None 18. Series 63, Regulation of Securities and Issuers,Series 63 As defined in the Uniform Securities Act, which of the following is not a security? A) Participating whole life insurance that pays annual dividends B) Variable annuity C) Corporate equity D) Corporate debt None 19. Series 63, Regulation of Securities and Issuers,Series 63 As defined in the Uniform Securities Act, which of the following are issuers of securities? I. ABC Manufacturing Corporation borrows in the capital markets by selling bonds every few months. II. Dot.Com Inc., in an initial public offering, sells all its securities to the public within a few minutes after the shares go public. III. XYZ Corp., in an initial public offering, fails to sell any shares to the public because it is not an attractive investment. IV. YYY Corp., with 1 million shares outstanding, sells additional shares to the public in a primary offering. A) III and IV B) I only C) I, II, III, and IV D) I, II, and IV None 20. Series 63, Regulation of Securities and Issuers,Series 63 Under the Uniform Securities Act, which of the following are securities? I. Commodity option contract II. Treasury stock III. Keogh plan A) I and II B) I, II, and III C) II and III D) I and III None 21. Series 63, Regulation of Securities and Issuers,Series 63 As defined in the Uniform Securities Act, which of the following are securities? I. A variable annuity II. A subscription right to purchase common stock III. A condominium purchased solely as a place of residence IV. Certificate of interest or participation in an oil, gas, or mining partnership A) I, II, III, and IV B) I, III, and IV C) II, III, and IV D) I, II, and IV None 22. Series 63, Regulation of Securities and Issuers,Series 63 In the Howey decision, the U.S. Supreme Court held that a security must represent A) an investment of money in a common enterprise with the expectation of profit from the managerial efforts of others. B) an interest in a publicly traded corporation whose managers are engaged in a regulated business enterprise. C) an investment of money in a common enterprise with the expectation of profit from the efforts of the investor. D) an investment of money in a common enterprise with the expectation of profit or tax deductible losses from the managerial efforts of others. None 23. Series 63, Regulation of Securities and Issuers,Series 63 Which of the following are defined as securities under the Uniform Securities Act? I. Real estate investment trust certificates II. Preorganization subscription agreements III. Shares of treasury stock IV. Voting-trust certificates issued by a corporation undergoing a reorganization A) I and IV B) I, II, and III C) I only D) I, II, III, and IV None 24. Series 63, Regulation of Securities and Issuers,Series 63 Under the Uniform Securities Act, which of the following are securities? I. A gold futures contract II. A put option on a gold futures contract III. A warrant to purchase shares of a common stock that trades in the OTC market. IV. Confirmation of a customer trade in listed common stock A) II and III B) I and II C) III and IV D) I, II, III, and IV None 25. Series 63, Regulation of Securities and Issuers,Series 63 As defined in the Uniform Securities Act, which of the following is not a security? A) A commodity options contract B) Interest in a merchandising marketing program C) Common stock of ABC National Bank, which is a member of the Federal Reserve System D) An annuity that provides for a fixed monthly income None 1 out of 25 Time is Up! Time's up
