Free FINRA Series63 Exam Dumps Questions & Answers

In which of the following scenarios will the investment adviser be subject to criminal fraud charges?

• A.An adviser sells its shares of TweedleDee Corporation after issuing a report recommending the stock as a "buy."
• B.An adviser owns the stock of TweedleDee Corporation and has issued a report recommending the stock as a "buy" without disclosing the fact that it owns the stock.
• C.An adviser owns the stock of TweedleDee Corporation and has issued a report recommending the stock as a "buy," disclosing the fact that it owns the stock
• D.all of the above. It is considered criminal fraud for an investment adviser to make any recommendations on a security in which it has or plans to have a position.

Which of the following would meet the requirements for an "exempt security?"

• A.a $500,000 promissory note that matures in two years
• B.commercial paper with a $200,000 face value and a maturity of three months that is rated BB by Standard and Poors
• C.a $25,000 promissory note that matures in three months
• D.commercial paper with a $100,000 face value and a maturity of five months that is rated AA by Standard and Poors

n No: 85
Which of the following is not in itself a reason for the Administrator to deny, suspend, or revoke the license of a person?

• A.The person is a broker-dealer whose agents have repeatedly been accused of churning and burning, according to written client complaints.
• B.Some of the information supplied on the registration application was found to be false.
• C.The applicant has never before worked in the securities industry although he has received the requisite training.
• D.The person has been convicted of check kiting within the past ten years.

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

• A.The victim(s) lost a combined total of at least $25,000 because of the act.
• B.The Administrator decides to send the case to criminal court.
• C.The perpetrator willfully committed the fraudulent act.
• D.The act extended across state lines.

Sam Shyster had his day in court-and lost. His license to do business as an investment adviser in the state has been revoked. What legitimate options does Sam have available to him now?

• A.Sam has 60 days to file an appeal of the decision in a court of law.
• B.Sam can move to another state and apply for registration as an investment adviser there.
• C.Sam can register with the SEC as an investment adviser, which will exempt him from state registration requirements.
• D.Sam has 45 days in which to file an appeal with the attorney general.