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Table of Contents
Chapter 1: Definitions ...................................................................... 13
Person Defined ...................................................................................13
Broker-Dealers ..................................................................................13
Definition of a Broker-Dealer ............................................................ 13
Broker-Dealers EXEMPTED from registration ..................................14
Broker/Dealer Capacity .......................................................................14
Registration of Broker-Dealers ...........................................................15
Agents .................................................................................................15
Definition of an Agent ........................................................................15
Agents Exempted ................................................................................18
Chapter 2: Investment Advisor and Other Definitions .................19
Investment Advisers ......................................................................... 19
Definition of an Investment Adviser .................................................. 19
Investment Advisor Registration .........................................................19
Exclusions to the IA Definition .......................................................... 19
Exemptions to the IA Definition ........................................................ 20
Federal vs. State Registered Investment Advisers ............................. 20
Registration Information for Broker-Dealers and Advisers ........ 20
Registration Rule ................................................................................ 21
Registration Application Information ................................................ 21
Other Registration Requirements ....................................................... 22
Registration Standards for Broker-Dealers and Investment Advisers 22
Other Investment Adviser Stuff ...................................................... 23
Investment Advisory Contracts .......................................................... 23
Custody of Customer Funds and/or Securities ................................... 23
Customer Disclosures ......................................................................... 24
Consent to Service of Process ............................................................ 24
Investment Adviser Representative ................................................ 24
Definition of an Investment Adviser Representative ..........................24
Registration Requirements for Investment Adviser Representatives . 25
Registration Standards for Agents and Investment Adviser Reps ..... 25
Ongoing Requirements .................................................................... 25
Books and Financial Records ............................................................. 25
Customer Reports ............................................................................... 25
Financial Reports ............................................................................... 26
No Inaccurate Information ................................................................. 26
Inspections .......................................................................................... 26
NASD Series 63
NASD Series 63
Introduction to
SuccessTrak Series 63
Welcome to SuccessTrak. The goal of all our programs is to make your study
experience effective, efficient, enjoyable and most of all, successful.
The Series 63 exam is made up of (4) major sections, known as the Uniform
Securities Agent State Law Examination (USA).
In addition, as part of the SuccessTrak Series 63 program, a Series 63 Computer Disk is included with this workbook. Our materials are concise and get right
to the point without adding any unnecessary material. Our primary goal is for you
to pass the Series 63 exam in a timely and efficient manner.
Subject
Percent of
Exam
Number
Questions
Registration of Persons
30%
18
Securities
25%
15
Business Practices
35%
21
Administrative Provisions
and Other Remedies
10%
Our Commitment
Our goal and primary mission is to provide you with the best quality, concise and
accurate information in the industry. By following our recommended strategy you
will pass the NASD Series 63 exam!
Series 63 Exam
The NASD requires a minimum passing score of 70% in order to be eligible for
NASD registration as an Agent. This exam is required if registered representatives solicit business in other states than the one registered in. Some states
require this qualification in order to be NASD securities licensed. The exams purpose is to test your knowledge of the Uniform Securities Act, referred to as USA
as well as the Act. This score is based on the overall exam, not each individual
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subject section. There are a total of 65 multiple choice questions with 60 questions that count with a time limit of 75 minutes.
The Series 63 Exam is administered at Prometric computerized testing centers.
When your broker-dealer registers you to take the exam you will receive an
admission ticket which is good for a period of 120 days. Your broker-dealer will
also advise you of the location of the nearest Proctor testing center.
Prometric Examination Center
Upon arrival at the test center you will sign in and a thumb print will be taken. Be
prepared to show a picture ID as well as another form of ID. Only calculators
capable of basic math functions such as addition, subtraction, multiplication and
division are permitted. You will be provided with pencils and four or five sheets of
scratch paper which must be returned upon completion of the exam.
After completing all the questions, assuming you do not run out of time, you will be
asked if you have completed the exam. Upon affirmation of this the exam is
graded automatically in seconds. Shortly thereafter, your score along with a
breakdown of each of the four sections will appear on your screen.
Upon completion of the exam you will be asked to complete an examination center survey. You will also receive a hard copy of your test results which will be available for you upon leaving. A copy of your test results will be sent to the NASD and
they will forward the results to your sponsoring broker-dealer.
Study Time
It is recommended that you spend approximately 16 - 20 hours reading the materials and working out the practice questions on the computer CD. This is an average so some students may require less while others may require more.
Recommended Study Method
The best way to approach your studies with the Series 63 is to review each of the
Sections independently, chapter by chapter. Upon completion of each chapter
complete the chapter review questions with at least a score of 80% or better
before moving on to the next chapter. Upon completing each section you should
review the Section Questions on the computer CD Rom attached to the inside of
the back cover. The questions in each of the computer CD Roms sections relate
to each of the four sections of this workbook. (CD Rom exam review installation
instructions can be found in Appendix B)
Theres an extensive Glossary located in Appendix A of this workbook. Whenever you are stumped or need to verify a definition you should immediately turn
to the glossary for help. The workbook should be used in conjunction with the CD
Rom.
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Upon completion of all four sections in this workbook and completion of the four
sections of review questions on the computer CD Rom, you should then complete
the two 65 final question exams also located on the computer CD Rom. The goal
is to attain scores of at least 80% or preferably 90% to be ready to take the NASD
Series 63 Exam.
Plan on spending 75 minutes on each of the two final exams, just like the actual
exam. Rationale and explanations are available for all section review questions as
well as for final exams.
Test Taking Techniques
Reading comprehension is an important part of being successful with all NASD
exams. It is imperative that you develop and/or improve appropriate test taking
techniques including the following:
Understanding what they are asking
It is important that you read each question at least three times prior to choosing your answer. It is important that you do not jump to conclusions. It is not
unusual that a question starts with what appears to be a specific set of facts
but changes midstream to other facts. If you jump to a conclusion without
adequate review you may choose the false answer fitting those beginning
facts.
Look out for clauses or qualifiers such as if, all, not, none and except. They
are often used in NASD questions. Obviously, the use of these clauses would
require a different answer than if the question was asked without them.
Lets take a look at an example:
Question 1
Persons, as defined under the USA, include which of the following,
EXCEPT?
I. Individuals
II. Corporations
III. Minors
IV. Estates
A. I and II
B. III only
C. II, III and IV
D. III and IV
Under the Uniform Securities Act (USA) all are defined as a person, except
a minor.
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Dont panic even though you may see questions that initially look unfamiliar. In a
number of questions you are going to have to interpret a set of facts and come to
a conclusion in the form of a test answer. At the same time you may be asked, in
these type of questions, combination subjects such as the following example;
Question 2
When the economy experiences an upward trend due to inflation what is the
general effect on interest rates?
A. Rates go up
B. Rates go down
C. Rates stay the same
D. Rates wont vary with inflation
This question is asking you the result of an increase in inflation, not what inflation
is. The correct response is A, interest rates go up with inflation. This of course will
cause the Federal Reserve Board to take action sooner or later and they will
increase rates even further which ultimately will cause the values of debt instruments to decrease. See what we mean? Just look at all the results that can be the
subject of test questions regarding the subject of inflation.
Eliminate Roman Numeral Type Question Choices
These types of questions are quite popular on NASD exams. However, if analyzed
properly they can work in your favor. Always attempt to eliminate one or more of
the available choices. If successful you may be able to narrow down your options
to the correct answer or minimally down to 50% of the choices. (There are anywhere between 30% - 45% of these type questions on the exam)
Question 3
Administrators can require minimum Net Capital and Net Worth for which of
the following?
I. Issuers
II. Investment Advisors
III. Broker-Dealers
IV. Agents
A. I and IV
B. II, III and IV
C. II and III
D. I, II, III and IV
If you were able to eliminate choice IV. agents, C would be the only possible
choice as IV is present in choices A, B and D.
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Definitions
Chapter 1: Definitions
1.1 PERSON DEFINED
Throughout the USA the term person is referred to. It is important to understand
what person refers to and all of its uses.
Persons can be defined as follows;
Individuals (just like you)
Corporations
Partnerships
Business trusts
Estates
Joint venture or joint stock company
Governments
Political subdivisions of Governments
Associations
1.2 BROKER-DEALERS
1.2.1 Definition of a Broker-Dealer
It is most important that you know and understand the definition of a broker-dealer
as all broker-dealers must register in every state it conducts business in unless an
exemption exists. So, lets take a look at the definition of a broker/dealer;
A broker-dealer is a person who engages in the business of effecting securities transactions for the account of others or for their own account (known
as proprietary trading)
1.2.1.1 Exclusions from the Definition of Broker-Dealer
The term broker-dealer does not apply to the following definitions and therefore they do not have to register as a broker-dealer under the USA;
Agent: Individuals who represent a broker-dealer when performing securities transactions. An agent is basically a sales representative or registered
representative of the broker-dealer. Remember - an Agent cannot be a
broker-dealer
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Definitions
Banks, savings and loans and trust companies (They are separately
regulated under Federal and State banking laws)
Issuers and agents of issuers
Persons who have no place of business in the state and;
- Only transact business with other broker-dealers, institutional buyers, issuers or financial institutions
- Is licensed in the state where the person maintains a place of business
and only makes offers to existing customers who are not a resident of that
state. (This allows doing business with a client who is on vacation in
another state)
- The firm has no place of business in a State where an existing customer is
vacationing and contacts the customer in that State.
Test Clue: Make sure you understand which broker-dealers are EXCLUDED
from registration and those that are EXEMPT from registration. There is a difference between those two words. Anything that is excluded may required
the person or persons claiming the exclusion to prove as to why the exclusion
should apply. However, anything that is exempt is done so by operation of
law and no proof is required on behalf of those claiming the exemption.
Exam Example: Suppose the Peace of Mind brokerage firm located in downtown Aurora, Illinois makes regular calls to mutual fund money managers in
Minneapolis, Minnesota offering to sell securities to them. However, Peace of
Mind does NOT have an office in Minneapolis. It needs to be pointed out that
the Peace of Mind brokerage firm does NOT deal with any retail investors in
Minneapolis.
Under the USA, Peace of Mind is not considered a broker-dealer in Minneapolis, Minnesota, because of the following reasons;
It has no place of business in Minnesota, AND
It deals only with institutional investors in Minnesota
1.2.2 Broker-Dealers EXEMPTED from registration
Broker-dealers that have no place of business in a State with 5 or fewer clients in
that State in a 12 month period of time.
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Definitions
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Definitions
There is no requirement that an agent earns a commission under the USA.
Agents may be compensated with a salary or with commissions.
Employees of brokerage firms who only perform clerical or managerial
functions and do not effect trades are excluded from the definition of an
agent and thus are not required to be registered. As an example, a partner
of the brokerage firm who has no sales function and who does not effect
trades is not required to register in the state as an agent.
1.3.1.1 Exclusions from the Definition of Agent
Test Clue: Basically, exclusions only apply to individuals who represent
issuers of exempt securities and exempt transactions but do NOT apply to
individuals who represent broker-dealers.
Individuals who represent issuers in trading the following exempt securities
would be excluded from the definition of agent:
Foreign Government
Municipal Government
Canadian Government
Bank and Savings Institutions
Trust Companies
U.S. Government
Commercial paper with a maximum maturity of 270 days or less
Securities in conjunction with savings, pension, profit sharing plans and
employee stock option plans.
Individuals who represent issuers in exempt transactions are also exempt
from the definition of agent. Generally speaking, exempt transactions do
not usually involve the public.
- Transactions between the issuer and the underwriter
- Transactions with financial or institutional investors such as banks, trust
companies, savings institutions and pension plans.
- Transactions effecting employees, officers, partners and directors of the
issuer when no compensation is paid to the individual for their solicitation
- Private placements (not a public offering of securities)
- Sales to qualified purchasers
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Definitions
1.3.3 Agents for Issuers Not Exempted
Individuals who represent issuers in effecting securities transactions are usually agents as well as long as the security or transaction is NOT exempt.
Example 1: Issuer Agent
Peggy Sue represents the Futuristic Company as president of the company.
In an effort to help raise capital through a stock offering, Peggy Sue sells
Futuristic shares of stock to several of her golfing buddies. By doing this,
Peggy Sue is representing Futuristic in effecting securiteis transactions and
would be considered to be an agent of Futuristic and therefore subject to
all applicable rules and regulations and must therefore register with the state
Administrator.
Example 2: Not an Agent
Assume Futurstic Company allows its employees to buy company stock and
an employee by the name of John, a Human Resources manager, arranges
those transactions. On the surface it appears that he should be considered
to be effecting securities transactions for Futuristic and should have to register.
BUT, if John does not solicit transactions and arranges them only when initiated by an employee, he is NOT an agent because of the exceptions listed
on the prior page in Section 1.3.1.1.
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Disclosure of any convictions relating to misdemeanors in the securities business and any type of felony
2.2.3 Other Registration Requirements
The State Administrator can require an applicant for initial registration to publish an announcement of the application in one or more newspapers published
in the State.
Federal covered advisers must file notice in the State by filing with the State
the same documents as have been filed with the SEC
Initial filing fees must be filed for the registration of;
- Investment advisers
- Broker-dealers
- Agents
- Investment Adviser Representatives
Annual renewal fees must be paid on time
Test Clue: Registration is effective 30 days from the filing date. If there are any
required amendments then registration would be effective 30 days from the
amendment filing date.
Renewal periods vary from state to state. However, for exam purposes renewals are from calendar year to calendar year. So, registrations must be renewed
by December 31st of each year
For agents or investment adviser representatives that are registered with the
SEC through the NASD (Central Registration Depository CRD) state information requirements would be satisfied.
2.2.4 Registration Standards for Broker-Dealers and Investment Advisers
For the most part registration standards are almost the same for both broker-dealers and investment advisers.
Unless noted otherwise, the following standards apply to both;
The State Administrator can require the maintaining of a Minimum Dollar
Amount of Net Capital. The purpose of this is to protect investors from possible business failure of a broker-dealer and/or investment adviser.
Surety Bond Coverage (amounts set by State Administrators) are used to
ensure performance by broker/dealers and investment advisers under current
securities laws. Broker-dealers and investment advisers who have net capital
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Notify the administrator if they have or will take custody of a customers funds
or securities. The administrator has the authority to sanction or disallow an
advisor from maintaining such custody.
Test Clue: It is prohibited for an investment advisor to have or take custody
of customer funds and/or securities if;
The Administrator prohibits this by rule; or
If there is no rule, the adviser fails to notify the Administrator that he has, or
will be taking custody of client funds and/or securities
2.3.3 Customer Disclosures
If an investment adviser wants to, or actually does act as a principal for its own
account, or act as a broker for both a client and another person when effecting
securities transactions, the adviser must;
Have the clients consent
Disclose to all customers what capacity the adviser or brokerage firm is acting in. In other words, is the brokerage firm/investor adviser acting as a broker or as a dealer? In fact, the NASD has a similar rule.
2.3.4 Consent to Service of Process
Broker-dealers, agents, investment advisers and investment adviser representatives obtain or renew their registration by filing an application and a consent of
service to process with the Administrator.
This form giving consent to service of process appoints the State Administrator to
be the attorney for the registrant. In other words, if someone is making the registrant part of a lawsuit the opposing party need only serve the State Administrator
with the notice of a law suit and it is the same as serving the adviser.
This consent is not required for renewal applications.
2.4 INVESTMENT ADVISER REPRESENTATIVE
2.4.1 Definition of an Investment Adviser Representative
An Investment Adviser Representative includes any partner, officer, director, or
other individual associated with an investment adviser who;
Makes recommendations or renders advice regarding securities
Manages accounts or portfolios of clients
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maintain records by the SEC and/or NASD for a different number of years those
rules take precedence over state rules.
2.5.2 Customer Reports
State Administrators may require that investment advisers provide certain information to clients. This usually takes the form of an Investment Advisory Brochure. This brochure may satisfy all or part of the reporting requirements required
by the State Administrators.
This is required by the Investment Advisers Act of 1940 and any compliance to
this Act satisfies any state requirements. The Brochure must be given to the prospective customers at least 48 hours prior to entering into any investment advisory contract.
2.5.3 Financial Reports
Broker-dealers and investment advisors must file financial reports to the State
Administrators as required. However if they are registered with the SEC then any
reports filed under the Federal Acts will satisfy the state requirements.
2.5.4 Inaccurate Information
If any reports are filed that contain any material incomplete or inaccurate information, then a correcting amendment must be filed promptly. If the corrected information is for an initial application the registration wont become effective until 30
days after receipt of the amended registration.
2.5.5 Inspections
All required records of registered broker-dealers and investment advisers are subject to periodic or special examination by representatives of State Administrators.
State reviews can and are often coordinated with representatives of the SEC and
NASD.
2.5.6 Broker Dealer Acting as an Investment Adviser
A person is permitted to act as both a broker-dealer and an investment adviser
without dual registration. However, Administrators may, in certain instances, stop
a broker-dealer from transacting business as an investment adviser if they feel the
person is not qualified.
End of Chapter Two
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Section 2: Securities
15 Questions 25%
This section covers the definition of a security, sale, offer to sell, and
issuer along with examples of what is and what is not a security, including Federal securities. The different types of registrations are reviewed
along with any applicable exemptions.
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Registration of Securities
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Registration of Securities
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Registration of Securities
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Registration of Securities
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Registration of Securities
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Registration of Securities
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- Promising to perform free services which are not really free or there is a
catch attached
- Promising to perform services with no real intention to do so
- Providing inaccurate market quotations
- Misrepresenting or overstating a clients account
- Making exaggerated claims
- Inaccurate statements as to the amount of commission or mark-ups being
charged in a securities transaction
- Spreading rumors or false statements with the intent of effecting a securities transaction
- Incorrect statements of an issuers past earnings or future earnings projections
- Executing a transaction without authorization to do so.
7.2 FAILURE TO STATE IMPORTANT FACTS
Just as important as making false or misleading statements, the USA also makes
it illegal and a violation for omissions (leaving out) of material facts such as;
Failure to bring customers written complaints to your supervisor at the brokerage firm for resolution
Deliberately being selective in the information being provided to your client
Not disclosing to the client who prepared the research provided by your brokerage firm
Not notifying a client that a transaction will result with larger than normal commissions or transactions costs
Failure to disclose that the broker-dealer is controlled by an issuer of any
security being offered to customers.
7.3 USE OF NON-PUBLIC INFORMATION
Non-public or insider information is defined as any information that has not been
disseminated to the general public. Non-public information is further defined as
that information which has an effect on the value of a security, up or down.
It is a violation of the USA to do any of the following;
Effect any transactions which are based on the use of material inside information
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Not providing a prospectus required by the Securities Act of 1933. The prospectus must be given to a client prior to or at the time of solicitation.
Test Clue: You are NOT permitted to mark up, highlight or underline a prospectus in any way to help point out important items to your clients. Making
any marks on a prospectus is considered an amendment to the prospectus
and is an SEC violation.
7.7 COMMUNICATING WITH CLIENTS
7.7.1 Advertising and Sales Literature
The State Administrator may require advertising and sales literature to be filed
with the State unless the security or transaction is exempt, or a federally covered
security.
Cannot use any advertising or sales presentations in such a fashion as to be
deceptive or misleading such as distributing any nonfatal data or material.
Included as advertising and sales literature are the following examples;
Circulars
Pamphlets
Form letters
Seminars
7 . 8 D E N Y, R E V O K E O R S U S P E N D R E G I S T R A T I O N
Registration may be denied, suspended, or revoked if the Administrator finds that
it is in the public interest and that the person who is the subject of the order;
Has filed a registration application that was materially incomplete, false or
misleading.
The registrant has willfully violated the Acts provisions.
Has not paid the required fees.
The registrant is subject to a State Administrators order denying, suspending
or revoking the registration.
The State Administrator deems the applicant unqualified based on the level of
experience, training, or securities knowledge.
Test Clue: A State Administrator cannot use this point, by itself, to disqualify any new applicant as new persons are probably unqualified at this point.
So, this requirement would be coupled with another requirement prior to
any disqualification.
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investment dollars back. (Note: There is no such thing as civil penalties, only
criminal penalties)
8.3.1 If the Investor Still Owns the Security
If the investor still owns the investment purchased the customer is entitled
to recover the following;
Original purchase price of the security, plus
Costs and reasonable attorney fees, plus
Interest on the money invested, computed from the purchase date, at the
legal interest rate (most states use 6%), minus any income already received
8.3.2 If the Investor No Longer Owns the Security
If the customer purchased the security in question but no longer owns it the customer is still entitled to recovery as listed above. Mathematically, the customer
can recover the difference between the original price paid and the price at which
the security was disposed of, plus interest paid at the legal rate, plus attorneys
fees, minus any income received from the security.
If an investor purchased a security that was sold in violation of the Act, the investor is entitled to retain the profitable investments and still seek recovery as mentioned above for the unprofitable investments.
8.3.3 Transactions Where Civil Liability Applies
Civil liabilities apply for the following violations;
Failing to register as an agent or broker-dealer
Selling unregistered securities in non-exempt transactions
Transactions that willfully manipulating the market
Failing to give a customer a prospectus where required
Failing to file sales literature and advertising as required
Misrepresenting the status of an agents or a securitys registration
Making unintentional false statements or omitting material facts
Note: Any civil suits must be brought no later than 3 years after the contract of
sale was executed. Such law suits cannot be brought later than 2 years after the
discovery of the facts constituting the violation.
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Test Clue: When analyzing jurisdiction questions, the State that has original
jurisdiction is the State that the bad deed was done in. Then all the other
involved States get jurisdiction.
8.5.3 Jurisdiction over Offers Made in the Media
An offer made in a newspaper with a general regular and paid circulation is not
considered to be made in the State if:
The newspaper is not published in the State; or
If the newspaper is published in the State but has more than 2/3 of its circulation outside the State, during the last 12 months.
Test Clue: Any offer to buy or sell securities made through television or radio
that is broadcast in the State is not considered to be made in this State if the
communication originates outside the State.
But, the broadcast is considered as having originated in this state if either the
broadcast studio or the originating source of transmission is located in this
state.
8.5.4 Situations to think about
If an offer originates in Wisconsin and is directed into Illinois, the offer is considered to be made in both states.
A person in Illinois makes an offer to buy as a result of an advertisement she
sees in a paper published in Indiana) or seen/heard in a radio or television
program originating in Indiana). If the seller in Indiana accepts the offer in Illinois the Administrator in Illinois would have original jurisdiction.
If a selling broker-dealer located in Illinois delivers a security into Florida, or
the buyer in Florida sends a check in payment from within Florida, the Florida
USA statute applies when delivery of the stock constitutes the sellers acceptance of the buyers offer to buy.
8.5.4.1 Test Question Example:
An agent registered in Illinois sells a security registered only in Wisconsin to a
resident of Iowa. The sale takes place in Kentucky. Primary jurisdiction for
any violations of the USA is that of the Administrator of the State of;
A. Wisconsin
B. Illinois
C. Iowa
D. Kentucky
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Good luck!
You will pass the Series 63!
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Open-end fund shares (mutual funds): shares are redeemable through the
mutual fund company, not in the markets.
Painting the tape: participating in securities transactions with the intention of giving the appearance of trading activity (illegal).
Person: includes corporations, associations, business trusts, partnerships,
estates, political subdivisions of governments, joint ventures or joint stock companies, individuals and governments.
Primary market: a new issue comes to market by the issuer and is known as a
primary transaction.
Real estate investment trust (REIT) certificates: bonds that are secured
(backed up) with real estate and/or mortgages as collateral.
Registration by Coordination: under this registration method the issuer can
coordinate state registration with an SEC registration being made under the Securities Act of 1933; filing the SEC information with the state will satisfy state registration requirements; this is a more stringent, rigorous method than Registration
by Filing and can be used by any company filing a registration statement with the
SEC.
Registration by Filing (Filing or Notification): this method can only be used by
seasoned companies; there is substantial trading activity and marketplace information.
Registration by Qualification: the most difficult method of registering and can be
used by any security in any state.
Sale: a contract to sell or dispose of a security or an interest in a security for
value.
Security: any legal instrument that indicates ownership or debt in a business,
including negotiable and nonnegotiable instruments or contracts representing
money or other property.
Selling away: effecting private transactions with clients without the authority or
permission of the agents broker-dealer.
State: any state, territory or possession of the United States, the District of Columbia and Puerto Rico.
State administrator: official in each state designated to administer, enforce and
otherwise carry out the provisions of the states securities act. They examine the
books and records of an issuer as often as necessary to guard against fraudulent
practices.
Treasury stock: common stock of a company that is being held by the company.
When a company buys its own stock back this is called treasury stock.
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Unit investment trusts (UITs): similar to mutual funds but are not managed.
Unsolicited transactions: trades made through a broker-dealer pursuant to
unsolicited orders to buy or sell.
USA: Uniform Securities Act (State Law)
U.S. agency bonds: (e.g. Government National Mortgage Association (GNMA)
and Federal National Mortgage Association (FNMA); known as pass-through
mortgage bonds.
Variable annuities: annuities that are invested in the stock market; choices of
types of mutual fund investments are chosen by the investors.
Voting trust certificates: special corporate securities used in corporate proxy
fights.
NASD Series 63
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Professional Training
Services, Inc.
Series 6 & 63
TesTaker
Program
SECTION EXAMS
FINAL EXAMS
TIMED FINAL EXAM
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NASD Series 63
Double-click on My Computer.
Double-click on Control Panel.
Double-click on Add/Remove Programs.
Click the Install button.
When the program directs you to insert the floppy disk or CD, click the Next
button.
6. When the file Setup.exe appears in the command line, click the Finish
button.
Once the installation program begins, a box will appear stating that files are being
copied. Please wait until this process is completed. When the necessary files are
copied, a screen will appear advising you to close any open programs. This is a
standard warning. Close any open programs and click the OK button.
The next screen will allow you to specify where to install the program files. Unless
you are familiar with specifying destination directories, it may be best to simply
accept the default directory. Either way, to continue the installation by clicking the
button with the picture of the computer.
During the installation process, you may encounter some messages. Sometimes
the installation program will advise you that a file is being copied that is not newer
than the file that already exists on your computer. It will ask if you want to keep the
existing file and suggest that you do so. You should keep the existing file by
clicking the Yes button.
In some rare instances, the setup program may need to update your system files,
which will then require a reboot of the computer. If it so requests, it is safe to
accept the update and allow the setup program to restart your computer. Once
your computer has rebooted, you will need to restart the setup program, following
the directions above.
NASD Series 63
Page 68
To import questions, click the File menu, then the Get Questions menu. The
following dialog box will appear: (This dialog box could say My Documents)
Click the down arrow to the right of the text box labeled Look in to navigate to
your CD-ROM disk. (Usually Drive D or E with a picture of a CD Rom on the
icon) On that disk, one or more files will appear that end in the .set extension.
Click on a set file to select it, and then click the Open button to import the
questions. Once the import process is completed, a message box will appear
showing the total number of questions imported.
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NASD Series 63
The various tests and other menus will then be activated and you are ready to
begin using the program.
From time to time you may purchase additional data sets. You can load other data
sets by following the same process listed above.
Taking Tests:
You can take exams by clicking on the menu heading for the desired test, then
click the desired test and the first question will appear. You answer the question
by either clicking on the desired answer button or typing the letter A, B, C or D on
your keyboard. When an answer is selected, the button graphic will change to
either Yes or No. You can then select other choices to find the correct answer,
but only your first response is counted toward your score. If and when the Explain
button appears, it means that an explanation is available for that question and can
be viewed by clicking on the button.
During a test, you are able to skip a question by clicking on the Skip button. The
question will then be skipped and will be brought back once you have completed
the other questions. You can skip as many questions as you wish.
Should you desire to exit the program prior to the completion of a test, you can do
so by first clicking the Exit Test button. You will be asked to confirm your desire
to exit the test prior to completion. You will then be offered the chance to save the
test so that you will be returned to the same question the next time the program
starts. If you save a test, the next time you start the program you will be given the
opportunity to pick up where you left off.
Uninstalling TesTaker:
Once you have successfully completed your actual licensing exam, you may wish
to remove the TesTaker program from your computer. To do so:
1.
2.
3.
4.
5.
Double-click on My Computer.
Double-click on Control Panel.
Double-click on Add/Remove Programs.
In the list of programs installed, click on TesTaker.
Click the Add/Remove button.
The program will then be uninstalled from your system, releasing valuable hard
drive space.
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Special Note: If you purchased more than one program you must follow the
procedure mentioned in the importing a data set section once again. Make sure
you are pointing to your CD Rom drive, not your C Drive. A warning will appear
indicating that prior questions will be deleted. This DOES NOT delete anything
from the CD Rom. It just deletes the current program questions such as the Series
63 from your computers memory in order to allow the new program to import the
new questions. You can always go back to the former program by following the
same procedure.
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NASD Series 63
NASD Series 63
Page 72
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NASD Series 63
NASD Series 63
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