Pass with professional Series_63 actual quiz materials

FINRA Series_63 Exam Overview:

FINRA Series_63 Exam Syllabus Topics:

FINRA Uniform Securities Agent State Law Examination Sample Questions:

1. Mr. and Mrs. Cleaver are nearing retirement and have made an appointment with Mr. Eddie, an
investment adviser representative who works for Haskell Investment Advisers, to get advice on how they
can better structure their investments to meet their retirement goals. Their son, Theodore, who has
recently graduated college and has a great job as a software writer for a video game company,
accompanies them. Mr. Eddie explains that the main goal of any plan is diversification and recommends
that Mr. and Mrs. Cleaver spread their investment monies equally among six load mutual funds that Mr.
Eddie can sell them. He suggests that Theodore follow suit and invest any monies he has equally among
the same ten funds. Has Mr. Eddie done anything wrong?

A) Yes. Clients who are ready to retire have different investment needs than a client who is just entering
the work force. The recommendation that both Theodore and his parents have the same asset allocation
is clearly unsuitable.
B) Yes. Mr. Eddie has advised his clients to invest in load funds when no load funds are clearly better
investments.
C) Yes. Mr. Eddie is guilty of misappropriation, a prohibited practice.
D) No. Diversification should, in fact, be the goal, and he has advised a well-diversified plan for his clients.

2. Which of the following entities is subject to be accused of churning?
I. investment advisers
II. investment adviser representatives
III. broker-dealers
IV. agents

A) I and III only
B) II, III, and IV only
C) II and IV only
D) I, II, III, and IV

3. An agent cannot tell a client that a mutual fund is "no load" if the fund has
I. a front-end load
II. a contingent deferred sales load
III. 12b-1 fees

A) I, II or III
B) I or II only
C) I only
D) I or III only

4. As an agent, which of the following statements about the Securities Investor Protection Corporation (SIPC)
can you legitimately make to your client?

A) "The SIPC is a government agency that was created by an Act of Congress to protect investors against
losses in the stock and bond market."
B) "The SIPC is a government agency created by an Act of Congress to combat fraud."
C) The SIPC is the FDIC of the stock and bond markets."
D) "The SIPC was established to restore funds to investors when the brokerage firm they have been using
is bankrupt or in financial distress."

5. Ari Gaunt is a registered agent employed by Small &Associates Broker-Dealers. He has been notified of a
hearing regarding the revocation of his license for making unauthorized trades on some of his clients'
accounts. Which of the following statements is necessarily true?

A) If Ari is found guilty and has his license revoked, he can appeal the decision in a court of law if he files
the appeal within sixty days.
B) If Ari is found guilty and has his license revoked, Small & Associates will have its license revoked as
well and must reapply for reinstatement by filling out an application and paying the requisite filing fees.
C) If Ari is found guilty and has his license revoked, Small & Associates will be subject to a fine.
D) The Administrator of the state can assess Ari with both civil and criminal penalties.

Solutions: