TEAS Mathematics: Number and Algebra (Quiz 4) 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 1 (part 2): Regulation of Investment Advisers including state-registered and federal covered advisers. (25 questions) Please click NEXTÂ to start your Free Series 63 Practice Quizzes right away. Best of Luck! 1. Series 63, Regulation of Investment Advisers including state-registered and federal covered advisers,Series 63 Under both state and federal laws, when a broker-dealer wants to offer wrap fee programs, A) consent must be granted by the Administrator of the state where the firm's principal office is located. B) the commissions charged cannot exceed the advisory fee C) it must also register as an investment adviser. D) it should limit the offering to accredited investors None 2. Series 63, Regulation of Investment Advisers including state-registered and federal covered advisers,Series 63 Although most questions on the exam do not use abbreviations, one that does appear from time to time is SRO. Those letters stand for A) self-regulatory organization. B) securities regulatory organization. C) state regulatory organization. D) sanctioning regulatory organization. None 3. Series 63, Regulation of Investment Advisers including state-registered and federal covered advisers,Series 63 According to the Uniform Securities Act, which of the following is not considered a person? A) Minor B) Guardian for someone declared legally incompetent C) Limited partnership D) Municipality None 4. Series 63, Regulation of Investment Advisers including state-registered and federal covered advisers,Series 63 Alex Garrding owns 100 shares of Utopia Medical Supplies, Inc., a corporation whose stock trades on the New York Stock Exchange. If Garrding sells those shares to Rollins Westerfield, it would meet the Uniform Securities Act's definition of A) a trade on a listed exchange. B) a nonissuer transaction. C) an illegal transaction. D) an issuer transaction. None 5. Series 63, Regulation of Investment Advisers including state-registered and federal covered advisers,Series 63 Which of the following could be an agent of a broker-dealer? A) A corporation B) A partnership C) Anyone meeting the definition of a person D) An individual over the age of majority None 6. Series 63, Regulation of Investment Advisers including state-registered and federal covered advisers,Series 63 The Uniform Securities Act is A) model legislation passed in 1956 in an effort to unify state securities laws. B) the prototype used by the SEC for developing federal securities laws. C) a series of regulations applying to securities transactions in interstate commerce. D) model legislation passed in 1956 that enabled states to dispense with the need to create their own securities laws. None 7. Series 63, Regulation of Investment Advisers including state-registered and federal covered advisers,Series 63 Which of the following is not included in the Uniform Securities Act's definition of a state? A) New Jersey B) New Hampshire C) New York D) New Brunswick None 8. Series 63, Regulation of Investment Advisers including state-registered and federal covered advisers,Series 63 Under the Uniform Securities Act, the definition of a broker-dealer includes A) a person in the business of making trades in his own account or for the accounts of others. B) an agent handling principal transactions with major institutional clients. C) a trust company when executing transactions in accounts in which it does not act in a fiduciary capacity. D) an authorized representative of the issuer who receives a commission. None 9. Series 63, Regulation of Investment Advisers including state-registered and federal covered advisers,Series 63 Purchases and sales of publicly traded unlisted securities are made A) illegally. B) privately. C) in the over-the-counter market. D) on the unlisted exchanges. None 10. Series 63, Regulation of Investment Advisers including state-registered and federal covered advisers,Series 63 A customer of a broker-dealer has been trading securities for several years. She recently purchased $10,000 of newly issued U.S. Treasury bonds and asks why she never received a prospectus. The agent would reply, A) ""I will get one for you as soon as possible."" B) ""U.S. Treasury securities are exempt from registration on the federal and state level, so there is no prospectus."" C) ""U.S. Treasury securities are excluded from the registration requirements of the federal and state regulators, so there is no prospectus."" D) ""U.S. Treasury securities are excluded from the definition of a security."" None 11. Series 63, Regulation of Investment Advisers including state-registered and federal covered advisers,Series 63 If, in the opinion of the Administrator, an agent is about to engage in a prohibited activity, the Administrator may A) issue an injunction. B) suspend the agent's registration pending the outcome of a hearing. C) arrest the agent. D) issue a cease and desist order. None 12. Series 63, Regulation of Investment Advisers including state-registered and federal covered advisers,Series 63 The term used to describe a security that may be sold legally in a state without the requirement to register is A) exempt transaction. B) guaranteed security. C) excluded security. D) exempt security. None 13. Series 63, Regulation of Investment Advisers including state-registered and federal covered advisers,Series 63 In an effort to create uniformity among state securities laws, there is a template followed by most states known as A) the Uniform Security Act. B) the Uniform Securities Act. C) the State Securities Act. D) the Standardized Securities Act. None 14. Series 63, Regulation of Investment Advisers including state-registered and federal covered advisers,Series 63 Under the Uniform Securities Act, the term nonissuer refers to A) a person other than the issuer. B) an agent. C) a corporation. D) an investment adviser. None 15. Series 63, Regulation of Investment Advisers including state-registered and federal covered advisers,Series 63 On the Series 63 exam, the term solicitor is used to describe persons who refer business to A) agents. B) broker-dealers. C) institutions. D) investment advisers. None 16. Series 63, Regulation of Investment Advisers including state-registered and federal covered advisers,Series 63 As found in the Uniform Securities Act, the term issuer means A) any person who issues or proposes to issue any security. B) only those persons who actually issue a security. C) any person representing a person who issues or proposes to issue any security. D) broker-dealers who trade only for their own accounts. None 17. Series 63, Regulation of Investment Advisers including state-registered and federal covered advisers,Series 63 Securities transactions that take place otherwise than on a listed stock exchange are made A) solely by broker-dealers. B) only after the stock exchanges close. C) on the unlisted exchanges. D) in the over-the-counter market. None 18. Series 63, Regulation of Investment Advisers including state-registered and federal covered advisers,Series 63 One of your customers has inherited 2,000 shares of Shortline Railroad guaranteed preferred stock. Being wary of the term guaranteed, you are asked for its meaning in this context. You would explain that A) the dividends on this stock are guaranteed to increase to keep pace with inflation. B) the dividends on this stock are guaranteed by the Shortline Railroad. C) the dividend payments on this stock are guaranteed by someone other than the issuer. D) shareholders are guaranteed against loss of principal. None 19. Series 63, Regulation of Investment Advisers including state-registered and federal covered advisers,Series 63 According to the Uniform Securities Act, which of the following is not considered a person? A) A corporation B) A minor C) A custodian D) A municipality None 20. Series 63, Regulation of Investment Advisers including state-registered and federal covered advisers,Series 63 As defined in the Uniform Securities Act, an offer or an offer to sell A) includes every disposition or purchase of a security for value. B) includes every attempt or offer to dispose of, or solicitation of an offer to buy, a security or interest in a security for value. C) only applies to attempts involving properly registered securities. D) is effective only when made by a properly registered agent. None 21. Series 63, Regulation of Investment Advisers including state-registered and federal covered advisers,Series 63 An individual eligible under federal law to purchase securities sold in a private placement is called A) a wealthy investor. B) a sophisticated investor. C) an institutional investor. D) an accredited investor. None 22. Series 63, Regulation of Investment Advisers including state-registered and federal covered advisers,Series 63 Which of the following is included in the Uniform Securities Act's definition of a person? A) A natural person since deceased B) An unincorporated association C) A natural person deemed mentally incompetent D) A minor None 23. Series 63, Regulation of Investment Advisers including state-registered and federal covered advisers,Series 63 As found in the Series 63 examination, which of the following terms is synonymous with retail client? A) Accredited investor B) Noninstitutional investor C) Qualified purchaser D) Existing customer None 24. Series 63, Regulation of Investment Advisers including state-registered and federal covered advisers,Series 63 One of the important definitions in the Uniform Securities Act is that of a security. That term would include all of the following except A) a mutual fund. B) a debenture. C) shares of common stock. D) an office building. None 25. Series 63, Regulation of Investment Advisers including state-registered and federal covered advisers,Series 63 Which of the following would be included in the Uniform Securities Act's definition of institution? A) An individual meeting the accredited investor requirements B) A corporation whose stock is listed on the New York Stock Exchange C) An individual meeting the qualified client requirements D) An employee benefit plan with assets of $1 million None 1 out of 25 Time is Up! Time's up
