2024 Latest Series63 Exam Dumps Recently Updated 251 Questions [Q43-Q59]

NEW QUESTION 43
Under which of the following scenarios can a client legitimately sue a purported professional in the securities industry and expect an award for damages?
I. The securities were sold by an agent whose registration was not yet effective with the state, but who had already applied for registration.
II. The security was a variable annuity, and the sales representative neglected to reveal the details of the surrender clause to the client.
III. The security was the stock of a company, the stock had recently been registered with the state for sale, had been granted registration, and the selling agent had told his client that the security had been state-approved for sale.

I only

II and III only

I and III only

I, II, and III

NEW QUESTION 44
Painting the tape refers to

the practice of buying large amounts of a security to drive its price up artificially.

the illegal activity of a group of investors who buy and sell a security among themselves to create an
artificially high volume of trading in hopes of luring investors to buy the security.

the prohibited practice of excessively trading on a client’s account that is used by some broker-dealers
and/or their agents to generate more commissions for themselves.

the unethical practice of investment advisers who issue “buy” recommendations for stocks that they
own themselves without disclosing the fact.

NEW QUESTION 45
A “notice filing” refers to

the right of an issuer to run tombstone ads in the newspapers and other publications upon filing a registration application with the state Administrator.

the filing by a federal covered investment adviser of forms already filed with the SEC along with a consent to service of process with the state Administrator.

a document that the issuer must file with the SEC informing the SEC that the firm has applied to the state for registration of its new security.

notification to the public by the issuer or its underwriters that the issue is being sold on an “all or nothing” basis.

NEW QUESTION 46
Mr. Sailor is cruising through the Bahamas when he learns that a healthcare company in which he owns
stock is being sued by former patients, doctors, nurses, and even the federal government. He doesn’t
have his broker’s number handy, and he doesn’t have internet access, so he calls his son and tells him to
call the broker and instruct the broker to sell his shares. As a registered agent for his broker, you take the
call. Should you execute this transaction?

Yes. This is a legitimate request from a client, and you are required to follow the client’s instructions.

No, not unless you and your broker-dealer have a written document that gives Mr. Sailor’s son the
power-of-attorney to trade on his account.

Yes, as long as the son presents proper identification that proves his relationship to Mr. Sailor, such as
a birth certificate.

Yes, as long as the son is at least 21 years old and not a minor child.

NEW QUESTION 47
Ari Gaunt is employed by a small state-registered broker-dealer and has recently received notification that his application to be a registered agent of the state has been accepted. Now that he is licensed to execute transactions for the firm’s clients, Ari has a batch of business cards printed up, with a picture of himself on the right-hand side of the card. Underneath the picture is the caption, “State-Approved Agent.” Will Ari be violating any securities laws if he distributes these business cards?

No. However, he may be violating company policy of the broker-dealer he works for by designing his own cards.

No. His registration with the Administrator of the state has been accepted, so he is entitled to call himself a “State-Approved Agent.”

Yes. Agents are not permitted to include a picture of themselves on their business cards.

Yes. It is a violation of a securities law to suggest that he has been approved by the state Administrator.

NEW QUESTION 48
Which of the following is not a method that can be used to register securities with the state?

registration by exception

registration by notification

registration by coordination

registration by qualification

NEW QUESTION 49
For how long after the effective date is a security’s registration valid?

three months

six months

one year

two years

NEW QUESTION 50
Your client calls you with a market order to purchase 500 shares of the stock of Oracle and asks when payment will be due. If today is Wednesday, September 15th, you inform the client that payment is due on

Monday, September 20th.

Thursday, September 16th.

Friday, September 17th.

Saturday, September 18th.

NEW QUESTION 51
Which of the following would meet the requirements for an “exempt security?”

a $500,000 promissory note that matures in two years

commercial paper with a $100,000 face value and a maturity of five months that is rated AA by Standard and Poors

a $25,000 promissory note that matures in three months

commercial paper with a $200,000 face value and a maturity of three months that is rated BB by Standard and Poors

NEW QUESTION 52
Bob Gogetter is an agent with CanDo Broker-Dealers. One of Bob’s clients is out of the country and cannot be contacted. The client holds some stock in a company that just released some information that should make its stock price soar. Bob knows that this client would probably want to increase his holdings, so Bob opens a margin account for his client and borrows the money to buy shares. As it happened, the stock price did soar, and Bob’s client earned a sizeable profit.
Is Bob in violation of any securities acts?

No. Bob has a fiduciary responsibility to his client to act in his best interest, and Bob knew this.

No, but only because Bob’s client profited from Bob’s intervention. If the stock had declined in.

Yes. It is against the law for an agent to open a margin account for a client without the client’s.

Yes. Bob is guilty of prohibited practice of churning.

NEW QUESTION 53
Which of the following would not be a prohibited activity for a broker-dealer?
I. A broker-dealer tells a client that a municipal revenue bond offered by the city of Boston, Massachusetts
is almost risk-free because it is backed by the taxes paid to the city, and the city generates a lot of tax
dollars.
II. A broker-dealer sells a client some bonds that the broker-dealer has in its portfolio, after informing the
client that it is acting as a seller in the transaction.
III. A broker-dealer purchases some stock that a client is selling for its own portfolio, after informing the
client that it is acting as a buyer in the transaction.
IV. A broker-dealer purchases 1,000 shares of Southwest Airlines for a client who calls and asks the
broker-dealer to buy some shares of a domestic airline stock at a good price for him and receives written
discretionary authority from the client two days later, prior to the settlement date.

I only

II and III only

I and IV only

II, III and IV only

NEW QUESTION 54
Nat Smart was employed as an investment adviser representative and sold many of his clients on a
municipal bond fund of which he was fond, telling his clients that the returns earned on it were completely
free from federal taxation. Unfortunately, he had some unhappy clients when, at the end of the year, they
discovered that they had to pay federal tax on the capital gains earned by the fund when it sold some of
the bonds it held. Nat was as surprised as they were. Based on these facts, which of the following
statements is necessarily true?
I. Because Nat was as surprised as they were, he is guiltless.
II. Nat is subject to civil liability payments.
III. Nat will be subject to the criminal penalties for fraud and may spend time in prison.

I only

II only

II and III only

III only

NEW QUESTION 55
Stu Pede is an agent with broker-dealer Cavalier. A customer calls with a request to establish a classic IRA and asks for Stu’s advice regarding where the money in the IRA should be invested. Stu suggests a municipal bond fund, explaining to his client that the interest income earned on it will be tax-free at the federal level, and some of it may even be tax-free at the state and local levels.
Has Stu engaged in any prohibited practices?

Yes. Stu is an agent with a broker-dealer. He is not an investment adviser representative and is not allowed to make recommendations regarding investments to the firm’s clients.

No. Although Stu has given investment advice, it was solicited by the client, and Stu received no additional compensation for the advice.

Yes. Municipal bonds are not suitable investments for a classic IRA, and Stu can have his license revoked or suspended.

No. Although municipal bonds are not suitable investments for a classic IRA, Stu obviously didn’t know this and is merely guilty of stupidity.

NEW QUESTION 56
A broker-dealer will be found guilty of churning an account if the account has a turnover ratio of

four.

five.

eight.

There is no specified turnover ratio assigned to the prohibited practice of churning.

NEW QUESTION 57
You have passed the necessary exams (congratulations!) and are applying for registration as a securities agent.
It is already the end of September. Therefore, you must pay

one-fourth of the annual fee required since only one quarter of the year remains.

the full annual fee, and your license will expire on September 30th next year.

the full annual fee, and your license will expire on December 31st next year.

the full annual fee, and your license will expire on December 31st this year.

NEW QUESTION 58
Switch Advisory is a small investment adviser partnership registered in a single state. A larger investment adviser firm, Bait Investment Adviser, is registered in the same state as well as two other states. Bait has offered to buy out three of Switch’s partners who want to retire. This will give Bait a 60% ownership in Switch Advisory.
Which of the following statements are true?
I. Switch Advisory must obtain the approval of its clients before the partners can sell their interests to Bait.
II. Switch Advisory must notify the state Administrator of this event.
III. Switch Advisory must notify their clients of this event, but does not need the clients’ approval.
IV. Switch Advisory must notify the SEC of this event.

I only

I and II only

II, III, and IV only

I, II, and IV only

NEW QUESTION 59
The 2003 NASAA Model Rule requires that investment advisers that are not federal covered maintain their records for at least

three years.

five years.

seven years.

Investment advisers must maintain their records for as long as they remain registered with the state.

2024 Latest Series63 Exam Dumps Recently Updated 251 Questions [Q43-Q59]

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