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Series-63 – Uniform Securities State Law Examination

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Showing 4–6 of 15 questions

Question 4

Layered Corporation wants to issue a bond that will have warrants attached. Each warrant gives the holder the right to buy 5 shares of Layered’s common stock at a price stipulated on the warrant.

In this instance, Layered must file to register which of the following securities with the state?

I. the bonds

II. the warrants

III. the common stock

Select an option, then click Submit answer.

  • ○

    I only
  • ○

    I and III only
  • ○

    I and II only
  • ○

    I, II, and III
  • ○

    the bonds
    II. the warrants
    III. the common stock
Question 5

An investment adviser representative with Capital Investment Advisors, Inc. advised his client to invest $5,000 in bonds of a firm that the adviser claimed was an investment “almost as risk-free as investing in U.S. government bonds; maybe even more so, given the magnitude of the government deficit these days.” The client paid a total of $200 for this advice. The bonds paid interest at the rate of 6%, with semiannual payments, and the client received $300 in interest payments before the firm went belly-up at the end of a year, and its bonds were deemed worthless. The client has filed suit, and its attorneys’ fees and court costs are expected to be $1,000. When the investment is a bond, the state has recently been assessing an interest rate equal to the interest rate paid by the security as an equitable interest payment guideline in civil penalties.

The maximum the client can expect in civil penalties is

Select an option, then click Submit answer.

  • ○

    $5,900.
  • ○

    $6,200.
  • ○

    $5,200.
  • ○

    $6,000.
Question 6

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

Select an option, then click Submit answer.

  • ○

    Wednesday, August 11th.
  • ○

    Tuesday, August 10th.
  • ○

    Friday, August 13th.
  • ○

    Monday, August 16th.