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FINRA Series_63 Exam Syllabus Topics:

SectionObjectives
Topic 1: State Securities Acts and Related Rules- Registration of securities, broker-dealers, agents, and investment advisers
- Definitions and terminology under Uniform Securities Act
- Exempt securities and exempt transactions
Topic 2: Regulatory Provisions and Compliance- Ethical practices and fiduciary obligations
- Enforcement actions and penalties
- Recordkeeping and administrative provisions
Topic 3: Registration Procedures and Requirements- State notice filings and renewals
- Registration process for agents and broker-dealers

FINRA Uniform Securities Agent State Law Examination Sample Questions:

Under the guidelines of the Bank Secrecy Act (BSA), the Treasury Department now requires
broker-dealers to obtain and keep certain information relating to clients that make or receive funds
transfers that involve

  • A. $100,000 or more.
  • B. $10,000 or more.
  • C. $3,000 or more.
  • D. $5,000 or more.
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

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Harry Lange manages the investment portfolio for the Fidelity Magellan Mutual Fund. Mr. Lange is a(n)

  • A. agent.
  • B. investment company.
  • C. investment adviser.
  • D. broker-dealer.
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

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The current yield on a bond fund refers to

  • A. the return that the fund earned because of the capital appreciation of the securities in the fund.
  • B. the total return that the fund has earned over the most recent 12 month period.
  • C. the return that the fund earned based only on the interest income it received
  • D. the percentage increase in the fund's net asset value.
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

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Newbie Corporation is considering the possibility of an interstate initial public offering (IPO) of its stock. In
the initial meetings with BigFee Investment Bankers, Newbie has learned that the underwriting spread will
be 15%. Although the actual offering price won't be set until Newbie's registration statement is approved
by the SEC, BigFee has indicated that the offer price will probably be between $3 and $4 a share and that
the stock will initially be listed on the OTC Bulletin Board. What methods for state registration does
Newbie have available?
I. registration by coordination
II. registration by notification
III. registration by qualification

  • A. Method I only
  • B. Methods I and III only
  • C. Method II only
  • D. Newbie may elect to register by any one of the above methods although registration by qualification
    would be the most burdensome choice.
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

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Which of the following does not necessarily have to be included in the contract between an investment
adviser and an individual client, according to the Uniform Securities Act (USA)?

  • A. a statement of the investment policy that has been agreed upon between the adviser and the client
  • B. if the investment adviser is a partnership, a statement indicating that the client will be notified if there is
    any change in the partners within a reasonable time period
  • C. a statement stipulating that the contract cannot be assigned to another party without the client's
    consent
  • D. the compensation agreement, which cannot be a percentage of the capital gains or capital appreciation
    earned on the portfolio for all but the wealthiest of individual clients.
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

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