2023 Series63 dumps review – Professional Quiz Study Materials [Q147-Q165]

Q147. According to the NASAA Model Rules, a broker-dealer is not permitted to allow a customer to engage in
margin transactions unless

Q148. In accordance with the National Securities Markets Improvement Act of 1996, which of the following is a federal covered adviser and, therefore, exempt from registering with the state Administrator?
I. An adviser who does business in 26 states.
II. An adviser who manages the portfolio of a mutual fund that is registered with the SEC.
III. An adviser with $35 million in assets under management

Q149. Which of the following persons is required to maintain its records in accordance with state dictates and meet the minimum net capital requirement imposed by the state?
I. federal covered adviser
II. state-registered investment adviser III. investment adviser representative

Q150. 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

Q151. Stable Corporation registered a bond issue that it plans to offer for sale in the state with the Administrator.
The bond has a par value of $1,000 and will pay interest of 7% a year, with the principal to be repaid in 5 years. The registration became effective on September 8th. The registration is effective

Q152. Noah Aull is an investment adviser representative with Canto Investment Advisers. A client has called and told Noah that he heard about a firm that had recently completed an IPO at a party he had attended that weekend and instructed Noah to purchase shares of the company, which was now trading on the OTC Bulletin Board. Noah did some research and felt the company was far too risky an investment for this client, so he did not execute the trade. This turned out to be fortunate for his client since the firm became insolvent within six months of its IPO.
Has Noah done anything wrong?

Q153. MoeMoney Investment Advisers, LLC is registered in the state of Texas, and its three offices are all
located in the greater Dallas-Fort Worth area. Five of its clients-all individuals-have relocated to Colorado
and all have indicated a desire to retain the services of MoeMoney. In order for this to be possible,

Q154. Which of the following would be an unsuitable recommendation for your 68-year-old client?

Q155. Kevin has a pair of season tickets to the Boston Red Sox games. He and his wife can’t attend all the
games themselves, so Kevin has created “packages” of eight games each that he is listing for sale on
Craig’s List. Do these “packages” meet the definition of securities, and, if so, does Kevin need to register
them with the state before offering them for sale?

Q156. Which of the following statements is false?

Q157. According to the NASAA Model Rules, which of the following institutions would not be considered a qualified custodian?

Q158. Alice Wonder called her broker on Tuesday, August 10th, with a market order to buy 10 calls on the stock
of Abbott Laboratories. Under normal conditions, Alice will have to pay for the calls on

Q159. To continue operating as an agent, broker-dealer, investment adviser, or investment adviser
representative next year, you must pay the filing fee to renew your license with the state Administrator by

Q160. Blue Sky Laws are designed to:

Q161. An agent cannot tell a client that a mutual fund is “no load” if the fund has
I. a front-end load
II. a contingent deferred sales load
III. 12b-1 fees

Q162. Which of the following is not one of the criteria for a security to be eligible for registration by notification?

Q163. George Geek is a computer programmer who tired of working for others and started his own company. He
convinced forty investors that he could design software that would rival Microsoft, and sold them each a
1 0% partnership interest in his firm for $25,000. He designed and printed up the partnership certificates
himself. George told the investors that he had a product that was on the verge of being marketable and
that when it did-within the next two months-revenues would pour into the company, and he would begin
paying dividends. He told them they could expect a 20% return on their money this year, with even higher
returns in the years to come. As it turned out, George wasn’t quite the programmer he thought he was,
and he wasn’t able to get all the bugs out of the program to make it marketable within the promised two
months. Within a year, George had tired of the project and was too busy picking up chicks in his new
Corvette when he wasn’t on the island of St. Bart overseeing the construction of his new beach
mansion-and picking up chicks. His activities, of course, were financed by the extremely generous
“salary” he paid himself from the investors’ monies. Under the Uniform Securities Act, do the investors
have any civil claims against George?

Q164. S. White and Associates is an investment adviser registered in the state of Kentucky and, as such, is
meeting Kentucky’s minimum net capital requirement for investment advisers. The firm recently registered
with the state of Virginia and has opened an office there. Virginia has a significantly higher net capital
requirement for its investment advisers. Which of the following statements is true?

Q165. You had the misfortune of working as a registered agent for an unscrupulous broker-dealer. You weren’t
privy to any of it, but apparently, your broker-dealer was guilty of some fraudulent activities and has had
his license revoked. In this instance,