Online Access Free Series63 Practice Test

Erin is a registered agent who works for SecureMoney Brokers-dealers. One of her clients, Mrs. McTurk, is a recently-widowed woman who relies on Erin for advice about her investment portfolio. Mrs. McTurk reminds Erin of her own grandmother, and she is happy to provide guidance within the sphere of her own knowledge.
Based on these facts, which of the following statements is true?

• A.Neither SecureMoney Broker-dealers nor Erin must register as an investment adviser based on the facts provided.
• B.Erin must register as an investment adviser since she is providing investment advice.
• C.SecureMoney Broker-dealers must register as an investment adviser since one of its employees is providing investment advice.
• D.SecureMoney Broker-dealers must register as an investment adviser since one of its employees is providing investment advice, and Erin must register as an investment adviser representative as the firm's employee.

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?

• A.Yes, as long as the son presents proper identification that proves his relationship to Mr. Sailor, such as a birth certificate.
• B.Yes. This is a legitimate request from a client, and you are required to follow the client's instructions.
• C.Yes, as long as the son is at least 21 years old and not a minor child.
• D.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.

Joe Treader is the owner of a small, state-registered investment advisory firm that is on the verge of becoming insolvent. One of his clients who has become like a mother to him is aware of his financial difficulties and has offered to sell off some of the assets that he manages for her and loan him the money to get him through this period of economic uncertainty until he is able to get on his feet again.
Can Joe take her up on her offer?

• A.Both A and B are true.
• B.Yes, but only if Joe draws up a formal loan agreement with a fair interest rate, based on the going market rates, stated in the agreement as well as a firm date for principal repayment.
• C.Yes. Based on the facts presented, it is an unsolicited offer and, as such, Joe can (and should) accept it.
• D.No. As the client's investment adviser, he has a fiduciary relationship with the client. Entering a loan agreement with this client could lead to conflicts of interest.

An individual who represents a broker-dealer in the buying and selling of securities is called a(n):

• A.underwriter
• B.agent
• C.administrator
• D.issuer

What criminal penalties are specified for "willful violations" of the Uniform Securities Act?

• A.up to 3 years in prison or a $5,000 fine, or both.
• B.license suspension.
• C.up to 5 years in prison or a $10,000 fine, or both.