Pass the FINRA Uniform Securities State Law Series-63 Questions and answers with ExamsMirror

Which of the following would a firm not be expected to provide to the Administrator when registering an issue of securities with the state?

Which of the following would not be found in a tombstone advertisement?

Which of the following are examples of the prohibited practice of manipulation in the securities markets?

I. Broker-Dealer Joker is unhappy with its investment in the stock of a speculative firm and engages another broker-dealer to purchase a large number of shares from it, with the unofficial agreement to buy back those shares, offer more shares which the second broker-dealer will purchase, and so on.

II. Broker-Dealer Joker has a large short position in the stock of a certain corporation. Joker offers a bonus to its agents who effect sale transactions in the stock.

III. A client calls Broker-Dealer Joker with a request to purchase 20 bonds issued by Massachusetts Institute of Technology (MIT.) The bonds are currently selling for their par value of $1,000. Knowing this, Joker offers to sells the client the bonds for $120 per $100 of par, or $1,200 per $1,000 bond.

No: 93

The net worth of a broker-dealer has fallen below the minimum net capital requirement specified by the state in which the broker-dealer is registered. This broker-dealer must notify the Administrator of this fact

When a customer files a complaint with a broker-dealer,

I. the broker-dealer must submit the complaint to the firm’s compliance department.

II. the broker-dealer must provide a prompt written response to the complainant.

III. the broker-dealer must temporarily suspend the activities of any agent named in the complaint.

Which of the following are accurate statements regarding the minimum financial requirements for investment advisers according to the NASAA Model Rules?

I. Any investment adviser who has discretionary authority over a client’s assets, but who does not have actual custody of client funds or securities, is required to maintain a minimum net worth of $10,000 at all times.

II. An investment adviser who requires that a fee of more than $500 from his clients be paid six months or more in advance must maintain a positive net worth at all times.

III. Only an investment adviser who has actual custody of client assets is subject to a minimum net worth requirement, which the NASAA Model Rules specifies is $10,000.

uestion No: 157

An investment adviser may act as a custodian for a client’s securities if

I. the Administrator of the state doesn’t have a rule prohibiting custodial arrangements.

II. he informs the state Administrator in writing that he will be acting as a custodian for the client.

III. he arranges to pay an independent certified public accountant to perform an unannounced audit of his books each year so that the accountant can report his findings to the state Administrator.

Noah Scruples, an agent with CanDo Broker-Dealers, just got a copy of the most recent report on a certain stock. The report was generated by CanDo’s analyst department and is hot off the presses. It has not yet even been put on the firm’s website for the firm’s clients.

The analyst department has just changed its recommendation on the stock from “Hold” to “Strong Buy” based on new information that it has obtained on the company.

Can Noah rush to his office to buy shares of the stock before the analysts release their reports to CanDo’s clients?

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 limited power-of-attorney gives the designated person the right to

I. order the sale of an asset owned by the account holder and have a check written to the account holder for the amount of the proceeds.

II. obtain account statements, including tax statements, on behalf of the account holder.

III. order the purchase of an asset for the account holder’s account.