Series 63

Series 63 practice questions, page 5 of 10, with answer review and explanations.

Question 21

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.

  1. I and II only
  2. II and III only
  3. II, III, and IV only
  4. I, II, III, and IV

Question 22

Once a broker-dealer has applied for and been granted state registration, the registration remains valid

  1. until December 31st.
  2. for twelve months.
  3. for three years.
  4. for five years.

Question 23

A broker-dealer is required to keep his records for how long?

  1. at least three years
  2. at least five years
  3. at least seven years
  4. broker-dealer is required to keep his records for as long as he is registered in the state.

Question 24

Which of the following entities would be required to register with the state as a broker-dealer under the guidelines of the Uniform Securities Act (USA)?

  1. an underwriter with no offices in the state that is helping a firm that is incorporated within the state with the sale of its new bond issue to insurance companies.
  2. a credit union that operates within the state and provides loans to its members.
  3. an agent who executes the purchase and sale of stocks and bonds for his clients.
  4. None of the above entities would be required to register with the state as a broker-dealer under the guidelines of the Uniform Securities Act.

Question 25

Joe Romeo is a broker-dealer registered with the state. He has recently hired Betty Buxom as his administrative assistant. As part of her duties, he has given her the responsibility for effecting the purchases and sales of securities for some of his firm's smaller accounts. Ms. Buxom has never applied for nor been granted registration as a broker-dealer or agent. Based on these facts,

  1. the Administrator is required by the Uniform Securities Act to revoke Joe Romeo's registration and file criminal and civil charges against him.
  2. there is no problem as long as Ms. Buxom registers with the state as an agent within thirty days.
  3. the Administrator may elect to revoke or suspend Joe Romeo's registration, and Joe may also face both civil and criminal penalties.
  4. the Administrator is required to turn the case over to the state's district attorney, who will file criminal charges against both Joe Romeo and Betty Buxom.