FREE FINANCE AND STUDY GAMES ABOUT SERIES 63

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FREE FINANCE AND STUDY GAMES ABOUT SERIES 63

EXAM QUESTIONS

Actual Qs and Ans Expert-Verified Explanation

This Exam contains:

-Guarantee passing score -113 Questions and Answers -format set of multiple-choice -Expert-Verified Explanation

Question 1: Exempt transactions

Answer:

? Isolated non-issuer transactions ? Unsolicited transactions ? Transactions between issuers and underwriters (investment banks) ? Certain fiduciary transactions, -e.g., Estate executors and/or administrators ,Sheriffs and marshalls, Trustees ?

Question 2: Common carrier

Answer:

a person or company that transports goods or passengers on regular routes at set rates (e.g., railroads)

Question 3: Registration by Coordination

Answer:

SEC (federal) and state registration simultaneously.Effective when: State registration paperwork on file at least 10 days (20 days is common) and No stop orders exist. May require escrow account.

Question 4: Consent to service process

Answer:

a document submitted alongside the registration form that appoints the state administrator as eligible to accept civil (non-criminal) complaints or legal requests on behalf of any registered person.

Question 5: Required items in notice filing

Answer:

? A copy of the SEC registration form and any amendments ? Consent to service of process ? Report detailing the dollar amount of securities to be sold in state ? Filing fee

Question 6: National Securities Market Improvement Act (NSMIA)

Answer:

? Established the term "federal-covered" ? Enforces federal laws over state laws if common jurisdiction exists

Question 7: conflicts of interest

Answer:

Any circumstance, relationship, or event that may compromise an adviser's fiduciary obligation is considered a conflict of interest.

Question 8: Exclusions from Agent Registration (5)

Answer:

? Clerical roles ? Institution rule ? Vacation (snowbird) rule ? Representing an issuer during certain transactions ? Facilitating an employee benefit plan

Question 9: De minimis rule

Answer:

Applies to IAs and IARs, not BDs and Agents. Engaging no more than 5 retail clients in a 12-month period in that state and no office in state (if you have an office you must register)

Question 10: Wrap account

Answer:

An investment account that offers a wide range of services, including investment management, trade execution, and financial planning, with all services "wrapped" up into one single fee

Question 11: Form ADV Part 2B (aka Brochure Supplement)

Answer:

? Discloses information on IARs involved in:

? Providing securities advice ? Roles exercising discretion

? Disclosed information:

? Educational background* ? Business experience ? Disciplinary information ? Other business activities

Question 12: Assessable stock

Answer:

It's stock that's initially offered by the issuer at a discount to the "face value" (what the issuer valued the shares at), with the expectation the issuer would ask for the difference later.Question 13: State Administrators oversee:

Answer:

? Registration and regulation of securities ? Enforcement of general securities regulations ? Enforcement of anti-fraud provisions

Question 14: Balance sheet disclosure

Answer:

Only for Investment Advisors that provide custody of client assets Only applies to State Registered IAs

Question 15: Form BD

Answer:

Used for broker/dealer registration

Question 16: ABC Rule for determining an investment Advisor

Answer:

advice, business, compensation.

Question 17: Cross agency transactions

Answer:

involving two clients, the transaction can only be recommended to one the clients. Trade confirmations must be provided. Written approval from both clients needs to be obtained. Must be shared with client annually.

Question 18: Exemption

Answer:

Regulations do not apply because of ongoing legal exception.

Question 19: A stop order

Answer:

is an administrator-created demand for an issuer to no longer issue a security. Orders may not be permanent, Orders prevent the issuer from raising capital (money) from investors for at least a short period.

Question 20: Qualified Purchasers

Answer:

Net worth $2.2 M - not including residence, $1.1 M with broker

Question 21: Federal-covered advisers

Answer:

? Register with and regulated by the SEC ? Provide notice filing to the state

Question 22: Registration by qualification

Answer:

this form of registration is primarily utilized by issuers of intrastate securities (sold in one state only) ? SEC has no jurisdiction; ? Subject to escrow requirements