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Series-63 – Uniform Securities State Law Examination

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Showing 7–9 of 15 questions

Question 7

Today’s edition of the Wall Street Journal carried a front page story regarding a federal lawsuit that has been filed against a software manufacturer for monopolistic practices. The CFO of the company called his broker today and sold some of the shares he owns in the company.

Which of the following statements are true?

I. The CFO is guilty of illegal insider trading.

II. If the agent who effected the transaction for the CFO knew he was CFO of the software company, the agent is guilty of illegal insider trading.

III. The broker-dealer for whom the agent works may have its license suspended or revoked if its agent has knowingly executed this illegal insider trade for not having supervised the agent properly.

Select an option, then click Submit answer.

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    I only
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    I and II only
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    I, II, and III
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    None of the statements is true.
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    The CFO is guilty of illegal insider trading.
    II. If the agent who effected the transaction for the CFO knew he was CFO of the software company, the agent is guilty of illegal insider trading.
    III. The broker-dealer for whom the agent works may have its license suspended or revoked if its agent has knowingly executed this illegal insider trade for not having supervised the agent properly.
Question 8

The trade confirmation must be received by the customer no later than

Select an option, then click Submit answer.

  • ○

    one week after the settlement date.
  • ○

    the settlement date.
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    the day after the trade takes place.
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    five business days after the settlement date.
Question 9

Assuming there is not a stop order or a proceeding pending, under the registration by coordination process a security’s registration with the state becomes effective:

Select an option, then click Submit answer.

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    only when it is approved by the state Administrator, regardless of whether it has been approved by the SEC.
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    immediately after approval by the SEC as long as the registration statement has been on file for at least 20 days or the Uniform Securities Act has provided an exemption to this waiting period.
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    immediately subsequent to approval by the SEC, regardless of how long the registration statement has been on file.
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    only when it is approved by the state Administrator, who will review the registration documentation upon notification that SEC approval has been granted.