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Series-63 – Uniform Securities State Law Examination

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Showing 1–3 of 15 questions

Question 1

Bootstraps, Inc. is a family-owned business that has experienced enormous growth in the last couple of years. The business needs more cash to support this growth and has decided to issue some promissory notes, each with a face value of $5,000, for sale to the general public. The firm plans to hire three individuals to help them sell these notes. These individuals will earn a commission based on the notes they sell.

Given these facts, which of the following is true?

Select an option, then click Submit answer.

  • ○

    The notes must be registered with the state, and the three individuals hired to sell the notes must be registered as agents with the state.
  • ○

    The notes must be registered with the state, but the individuals hired to sell them are not required to be registered.
  • ○

    Neither the notes nor the individuals selling the notes need to be registered with the state.
  • ○

    Either the firm must register the notes with the state, or the individuals that are hired to sell the notes must be registered as agents with the state, but not both.
Question 2

Which of the following conditions is necessary for an act involving securities fraud to be considered criminal and subject to criminal penalties?

Select an option, then click Submit answer.

  • ○

    The act extended across state lines.
  • ○

    The perpetrator willfully committed the fraudulent act.
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    The victim(s) lost a combined total of at least $25,000 because of the act.
  • ○

    The Administrator decides to send the case to criminal court.
Question 3

Which of the following statements would not be in violation of NASAA rules regarding the sale of investment company shares?

I. “Investing your money in shares of this money market mutual fund is identical to putting your money in a savings account at a bank, except the money market fund provides a higher return.”

II. “Our U.S. government bond fund is invested only in government bonds issued by the U.S. government and is, therefore, a risk-free investment.”

III. “You are investing $22,000 in this fund today. The fund has a 5% load at this investment level, but if you sign a letter of intent to invest another $3,000 within the next 13 months, your load will be reduced to 4%. If something comes up and you can’t invest the extra $3,000 within 13 months, you will only need to pay the difference in the two loads.”

Select an option, then click Submit answer.

  • ○

    I only
  • ○

    I and II only
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    III only
  • ○

    I, II, and III
  • ○

    “Investing your money in shares of this money market mutual fund is identical to putting your money in a savings account at a bank, except the money market fund provides a higher return.”

    II. “Our U.S. government bond fund is invested only in government bonds issued by the U.S. government and is, therefore, a risk-free investment.”
    III. “You are investing $22,000 in this fund today. The fund has a 5% load at this investment level, but if you sign a letter of intent to invest another $3,000 within the next 13 months, your load will be reduced to 4%. If something comes up and you can’t invest the extra $3,000 within 13 months, you will only need to pay the difference in the two loads.”