FINRA Series-63 Exam Questions Free Practice Test

Viewing page 1 out of 8 pages

Viewing questions 1-10 out of questions

Questions # 1:

Which of the following would not appear on a trade confirmation?

Options:

the client’s account number

the commission

the settlement date

All of the above items appear on a trade confirmation.

Expert Solution

Questions # 2:

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.

Options:

I and II only

II and III only

II, III, and IV only

I, II, III, and IV

Expert Solution

Questions # 3:

Mr. Teche is an agent with broker-dealer CanDo, and his only compensation is the commissions he earns on trades he executes. He has applied for and been granted an adjunct teaching position with a local university that will allow him to earn money while he is establishing himself.

Which of the following statements are true?

Options:

As an agent with broker-dealer CanDo, Mr. Teche must notify CanDo in writing of this position prior to accepting it.

CanDo can deny Mr. Teche permission to accept the adjunct teaching position.

Mr. Teche is, in essence, an independent contractor with broker-dealer CanDo and can engage in any other business activity at will.

Both A and B are true.

Expert Solution

Questions # 4:

Fly-By-Night Investment Advisers has closed its doors.

Which of the following statements is true?

Options:

Fly-By-Night is required to shred all documentation of client transactions and communications.

Fly-By-Night must send all records of client transactions and communications to the state Administrator for safekeeping.

Fly-By-Night must preserve and maintain all records, including client transactions and communications, advertising materials, and financial statements of the now-defunct business for five years.

Fly-By-Night must send each of its former clients its records of all that client’s transactions and communications with the firm over the past five years.

Expert Solution

Questions # 5:

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

Options:

I, II, III, and IV

I, II, and III

I, III, and IV

I, II, and IV

Expert Solution

Questions # 6:

Elizabeth is the owner of Lizbeth Investment Advisers, a small, state-registered investment advisory firm. She has decided that her firm needs a niche and has learned that a consulting group is coming to the area and offering a 3-day seminar on asset allocation for senior citizens offered by Advantage for Retirement Persons (ARP). The seminar will cost $1,000 per individual, but after attending the seminar, each attendee will receive a certificate verifying their involvement in the program. Elizabeth decides this is the niche she has been looking for and signs up herself and her three investment adviser representatives for the program. After attending the seminar and receiving their certificates, Elizabeth and her team can

Options:

represent themselves as certified senior citizen investment advisers.

have the words “Senior-Citizen Investment Specialists” printed on their business cards.

indicate that they are certified by the ARP program since money was paid for their attendance.

do none of the above.

Expert Solution

Questions # 7:

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

Options:

If the investment adviser is registered with the SEC, then neither the investment adviser nor any of its affiliated investment adviser representative needs to be registered with the state.

Regardless of whether the investment adviser is registered with the SEC or is registered with the state, all investment adviser representatives of the firm must be registered with the state if they have offices in the state.

If the investment adviser that the investment adviser representative is affiliated with is itself registered with the state, then the investment adviser representative does not need to apply for a separate registration, regardless of whether the investment adviser representative has an office in the state.

If an investment adviser representative is registered with the SEC, he or she need not obtain state registration, regardless of whether the investment adviser representative has an office in the state.

Expert Solution

Questions # 8:

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,

Options:

Maddie has thirty days to find a job with another broker-dealer, or she will need to file a new registration application.

Maddie has sixty days to find a job with another broker-dealer, or she will need to file a new registration application.

Maddie will have to file a new application for registration with the Administrator upon finding employment with another broker-dealer since she is no longer considered to be a registered agent by the state.

Maddie is required to call all of her clients at QuikDeals to inform them she is no longer employed there.

Expert Solution

Questions # 9:

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,

Options:

Sunny Investment Advisers will not be held liable if it can prove that there was no way it could have or should have known of the revocation of Sam Shade’s (aka Ian Creed) license.

Sunny Investment Advisers will be subject to criminal prosecution for employing an individual whose license had been revoked by the Administrator of another state since it obviously did not use due diligence in hiring Ian Creed, aka Sam Shade.

Sunny Investment Advisers will be subject to civil penalties for employing an individual whose license had been revoked by the Administrator of another state.

Sunny Investment Advisers will be subject to both criminal prosecution and civil penalties for employing an individual whose license had been revoked by the Administrator of another state since it obviously did not use due diligence in hiring Ian Creed, aka Sam Shade.

Expert Solution

Questions # 10:

Registered agent Ina Scent has had her license suspended by the state Administrator prior to an administrative hearing on the order.

Which of the following statements is true regarding Ina’s situation?

Options:

Ina can sue the Administrator because she was not afforded a hearing before the suspension took place.

Ina can make a written request that a hearing on the issue be scheduled within ten business days of her request and may continue working with clients while waiting for her day in court.

Ina can make a written request that a hearing on the issue be scheduled within fifteen business days of her request and may not continue working with clients unless the Administrator vacates the order until final determination.

Ina can immediately file an appeal of the suspension in a court of law.

Expert Solution

Viewing page 1 out of 8 pages

Viewing questions 1-10 out of questions

Pass the FINRA Uniform Securities State Law Series-63 Questions and answers with CertsForce