Series 63 Quiz 2 (1-30)

An employee of an issuer who sells the issuer's common stock exclusively to trust companies and savings institutions is

In their advertising campaigns, investment advisers are prohibited from doing all of the following EXCEPT

Sharon Smith is an agent for Highwater Securities, a broker-dealer registered in all 50 states. Sharon receives an unsolicited order from a bank located in State X, a state in which she has no place of business. Under the Uniform Securities Act

Under the Uniform Securities Act, all of the following are prohibited practices EXCEPT

An agent learns of material, inside information regarding a company that is publicly held. Which of the following with respect to the information would NOT violate the Uniform Securities Act?

Under the USA, the term guaranteed refers to all of these EXCEPT

Under the Uniform Securities Act, which of the following statements is (are) TRUE regarding civil liability of advisers and broker-dealers?

I. The statute of limitations for civil liability is 5 years. II. A lawsuit against a broker-dealer or adviser can be avoided if restitution, costs, and interest are paid to a client. III. If restitution is made to a client by a broker-dealer, the Administrator may not prosecute the securities violation.

To sell securities, an agent must be registered as an agent in

I. his state of residence where he sells securities II. each state in which he actually sells securities III. every state where his employing broker-dealer is registered IV. each state where he offers the sale of securities to retail clients

Under the USA, the administrator may do all of the following EXCEPT

Under the Uniform Securities Act, an administrator who believes a violation has occurred or is about to occur may

I. issue a cease and desist order without a prior hearing II. bring action to obtain an injunction and have a receiver appointed over the alleged violator's accounts III. seek a court order requiring the alleged violation to make restitution to others

Which of the following actions would be considered a violation of the NASAA Statement of Policy on Dishonest or Unethical Business Practices of Broker-Dealers and Agents?

Which of the following would NOT be an example of market manipulation?

According to North American Securities Administrators Association's (NASAA) Statement of Policy on Dishonest or Unethical Business Practices of Broker/Dealers and Agents, which of the following practices is NOT unethical?

An investment adviser who has no office in a state is exempt from registration in a state if, during any 12-month period, he has no more than how many retail clients in the state?

After receiving complaint letters from an irate customer, the agent decides against a reply and discards the letters. Under the Uniform Securities Act, the

All of the following must be specified in a security's state registration statement EXCEPT

Nobody Walks Motor Company, a licensed automobile dealer, is running a promotion offering anyone who purchases a car over the weekend to receive a $1,000 corporate bond at no additional cost. Under the Uniform Securities Act, in order to make this offer

Under the Uniform Securities Act, which of the following is NOT excluded from the definition of broker-dealer?

Which of the following statements regarding brokerage and advisory activities under the USA and TRUE?

I. It is not unlawful for an investment adviser or broker-dealer to employ any device, scheme, or artifice to defraud in the sales of securities to institutional investors because the USA is designed to protect individual investors. II. Under the USA, it is unlawful for an investment adviser to deceive a person when not providing advice to that person. III. Sanctions for both investment advisers and broker-dealers include administrative proceedings, judicial injunctions, and civil and criminal prosecutions. IV. It is unlawful for any person, whether technically defined as an investment adviser or not, to deceive another person for compensation as to the value of securities.

The agreement that the Administrator can receive subpoenas on behalf of a registered agent, broker-dealer, or investment adviser involved in any securities sale that violates the Uniform Securities Act is the

Under the Uniform Securities Act, if the Administrator does not deny an application for registration as a broker-dealer and no disciplinary proceeding is underway in regard to it, how many days after filing the application does registration generally become effective?

Under the NASAA Statement of Policy on Dishonest or Unethical Business Practices of Broker-Dealers and Agents, an agent could not

If a manufacturing company in the registration process with the SEC is considering registering its securities in a state, the method that it would use to register in the state is

Broker-dealers are prohibited from

Sam Wiggins receives the good news that his registration as an agent for Big Bucks Brokers became effective November 20,2014. Sam celebrates by inviting a number of prospects to his home for Thanksgiving dinner. Instead of cornbread stuffing, Sam's wife inserts mutual fund prospectuses into the "bird" and there are enough for each of the dinner guests. Sam's registration will come up for renewal on

An agent is making a presentation of a mutual fund to a client. In order that the client better understand the risks and expenses involved, the agent takes a yellow highlighter and uses it to mark the most important information in the prospectus. Under the NASAA Statement of Policy on Dishonest or Unethical Business Practices of Broker-Dealers and Agents, this is

When it comes to borrowing and lending money, the NASAA Model Rules prohibit activity that would compromise the objectivity of securities professionals. Which of the following are NOT prohibited practices?

I. A broker-dealer lending money to a client to purchase additional securities II. An agent taking out a car loan from a bank whose branch manager is a client of that agent III. An investment adviser lending money to a client to enable that client to maintain the minimum required asset level in the account

Which of the following transactions are prohibited?

I. Borrowing money or securities from a high net-worth customer II. Selling speculative or hot issues to a retired couple of modest means on a fixed income III. Failing to follow a customer's orders to prevent investment in a security not adequately covered by well-known securities analysts IV. Backdating confirmations for the benefit of the client's tax reporting

Under the NASAA Statement of Policy on Dishonest or Unethical Business Practices of Broker-Dealers and Agents, all of the following are prohibited practices EXCEPT

XYZ Securities Co. is simultaneously registering as a broker-dealer with the SEC and several states. Which of the following statements regarding its registration under the Uniform Securities Act is CORRECT?