Series 63

Series 63 practice questions, page 4 of 10, with answer review and explanations.

Question 16

Although an Administrator has broad powers, he or she cannot:

  1. issue subpoenas involving compulsory attendance.
  2. gather evidence.
  3. deliver a judicial injunction.
  4. formulate rules and orders.

Question 17

"Federal covered securities" were defined and exempted from state registration requirements by the:

  1. National Securities Markets Improvement Act of 1996 (NSMIA.)
  2. Gramm-Leach-Bliley Act of 1999 (GLBA.)
  3. Uniform Securities Act (USA.)
  4. National Conference of Commissioners on Uniform State Laws (NCCUSL.)

Question 18

Rich Quick is a broker-dealer licensed in the state of Massachusetts and has offices only within the state. Two of Rich Quick's clients regularly vacation in Florida during the winter months, and Rich Quick executes trades for them when they call him from out-of-state. Based on these facts, I. Rich Quick needs to register as a broker-dealer in the state of Florida as well. II. Rich Quick needs to register only as an agent in the state of Florida. III. Rich Quick needs to establish an office in the state of Florida in order to transact business. IV. Rich Quick need not register in Florida.

  1. Statements I and III are true.
  2. Statements II and III are true.
  3. Only Statement I is true.
  4. Only Statement IV is true.

Question 19

Most individual state securities laws today are based on:

  1. the Uniform Securities Act of 1956.
  2. the Uniform Securities Act of 2002.
  3. the National Securities Markets Improvement Act of 1996.
  4. the Gramm-Leach-Bliley Act of 1999.

Question 20

BigCash Broker-Dealers is registered in the state and is in the process of purchasing a smaller broker-dealer, Target Investments, as a subsidiary. Target Investments is also registered in the state. After completing the purchase, what actions must BigCash take regarding registration of its new subsidiary?

  1. BigCash need do nothing since Target Investments was already duly registered with the state as a broker-dealer.
  2. BigCash must file a new application with the state to register its new subsidiary, but will be able to utilize the remainder of any annual filing fees that Target Investments had paid for the year.
  3. BigCash must file a new application with the state to register its new subsidiary and must also pay the annual filing fees required by the Administrator.
  4. BigCash will need to pay the annual filing fees required by the Administrator, but will not need to file a new registration application.