Series 63

Series 63 practice questions, page 9 of 10, with answer review and explanations.

Question 41

An arrangement wherein a terminally ill person sells a second party his life insurance policy at a discount from its face value, giving the buyer the right to the policy's face value when the seller dies is called a:

  1. death warrant.
  2. viatical settlement.
  3. deceased option.
  4. life straddle.

Question 42

Mr. Bigwig, CEO of HiGrowth Corporation, meets with the president of BigFee Investment Bankers and arranges for BigFee to underwrite an Initial Public Offering (IPO) for the firm. When the IPO comes to market, GetErDone Broker-Dealers is part of the selling group, which handles the sale of the stock to the public. In this scenario, which party is the issuer?

  1. HiGrowth Corporation
  2. Mr. Bigwig
  3. BigFee Investment Bankers
  4. GetErDone Broker-Dealers

Question 43

Assuming the security is not registered under the Uniform Securities Act, which of the following would not be exempt from state registration?

  1. a variable annuity contract offered by an insurance company with offices in the state
  2. a stock that is listed on the American Stock Exchange
  3. a stock that is listed on the OTC Bulletin Board
  4. a put option on a stock that sells in the over-the-counter market

Question 44

Under the Uniform Securities Act, which of the following does not need to be included when filing to register a security issue with the state?

  1. a copy of the firm's articles of incorporation and bylaws, or the equivalent
  2. copies of the underwriter agreements
  3. a copy of any indenture applying to the security being registered
  4. All of the above documents must be included when filing to register a security with the state.

Question 45

For how long after the effective date is a security's registration valid?

  1. three months
  2. six months
  3. one year
  4. two years