Online Access Free Series63 Practice Test

Ari Gaunt is a registered agent employed by Small &Associates Broker-Dealers. He has been notified of a hearing regarding the revocation of his license for making unauthorized trades on some of his clients' accounts.
Which of the following statements is necessarily true?

• A.If Ari is found guilty and has his license revoked, he can appeal the decision in a court of law if he files the appeal within sixty days.
• B.The Administrator of the state can assess Ari with both civil and criminal penalties.
• C.If Ari is found guilty and has his license revoked, Small & Associates will be subject to a fine.
• D.If Ari is found guilty and has his license revoked, Small & Associates will have its license revoked as well and must reapply for reinstatement by filling out an application and paying the requisite filing fees.

Ms. Ding is an administrative assistant to the manager of a mutual fund. Most of her day is spent entering data onto a spreadsheet for her boss and answering phone calls. Some of the calls require her to provide information about the some of the fund's financial aspects, such as its closing net asset value on the previous day.
What type of registration does Ms. Ding require in order to perform her duties?

• A.Ms. Ding needs to apply for registration as an agent since she is providing financial information.
• B.Ms. Ding does not need to apply for any type of registration. She is merely supplying information and is not engaged in the purchase or sale of the fund shares.
• C.Ms. Ding needs to apply for registration as an investment adviser representative since she is providing information about a specific mutual fund.
• D.Ms. Ding will need to apply for registration as both an agent and an investment adviser representative in this case since she is providing information about a mutual fund.

According to the NASAA Model Rules, a broker-dealer is not permitted to allow a customer to engage in margin transactions unless

• A.the client has a net worth of at least $500,000.
• B.the broker-dealer receives a margin agreement signed by the client promptly after the client's first margin transaction.
• C.the client has been a customer of the firm for at least 6 months.
• D.the broker-dealer already has a margin agreement signed by the client in hand.

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

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

Which of the following scenarios does not meet the definition of "custody" under NASAA Model Rules?

• A.An investment adviser receives a check from a client that is written to a mutual fund and forwards the check to the mutual fund within three business days of receipt.
• B.An investment adviser keeps a client's securities in its safety deposit box.
• C.An investment adviser has general power of attorney for a client and is authorized to withdraw client funds or securities that are on deposit with a registered broker-dealer upon the investment adviser's request.
• D.An investment adviser is mistakenly sent a client's securities, but returns them to the sender within three business days of receipt.