Prep and try our Series_63 valid and latest training questions & answers

You have passed the necessary exams (congratulations!) and are applying for registration as a securities
agent. It is already the end of September. Therefore, you must pay

• A. the full annual fee, and your license will expire on December 31st next year.
• B. one-fourth of the annual fee required since only one quarter of the year remains.
• C. the full annual fee, and your license will expire on December 31st this year.
• D. the full annual fee, and your license will expire on September 30th next year.

Which of the following describes a prohibited practice in the sale of shares of investment companies?
I. Sandy Slacker hands her client the fund's prospectus and tells him that the prospectus will provide him
all that he needs to know about loads and fees associated with the fund.
II. Elliot Eager tells a client who has an investment objective that includes current income that a certain
bond fund has a current yield of 8% and provides the client with a prospectus so that the client can peruse
the average annual returns that the fund has generated in past years when the client has the time.
III. After explaining all the fees and loads involved in two different bond funds as well as the difference
between current yield and total return, Patty shows the client the data on the average annual returns that
the two bond funds provided. She explains to the client that the municipal bond fund has a lower yield
than the similar-risk corporate bond fund because the interest income the client will receive from the
municipal bond fund will be free from federal taxation, while the interest income on the corporate bond
fund is fully taxable.

• A. I and III only
• B. All the choices describe prohibited practices in the sale of shares of investment companies.
• C. I only
• D. I and II only

Which of the following orders can an Administrator issue without providing prior notice?

• A. license revocation
• B. license denial
• C. cease and desist
• D. license suspension

Ms. Muffet is employed by Spyder Broker-Dealers. Her job duties include providing price quotes and
executing purchases and sales for the firm's clients. She is paid a salary plus commission. Ms. Muffet is

• A. an investment adviser.
• B. an agent.
• C. an investment adviser representative.
• D. a broker-dealer.

Cassie Clueless has recommended that a client purchase shares of a mutual fund prior to its ex-dividend
date, so that the client will receive the dividends when they are distributed. In which of the following
situations might this recommendation be justifiable and not in violation of NASAA rules?
I. The investor has refused to provide Cassie any information regarding his investment goals.
II. The investor is a young professional with an investment goal of long-term capital appreciation.
III. The investor is a retiree in a low tax bracket and needs current income to augment her social security
check.

• A. I only
• B. I and II only
• C. III only
• D. It is always in violation of NASAA rules to recommend that a client purchase shares of a mutual fund
  prior to its ex-dividend date.