Free FINRA Series63 Exam Dumps Questions & Answers

Under the NASAA Model Rules, which of the following must an investment adviser provide its clients with at least once a year?

• A.  the number of any complaints that each of its investment adviser representatives has received during the period
• B.  the total amount of commissions or other compensation that the investment adviser received or expects to receive in connection with agency cross transactions performed for the client during the period
• C.  the total number of agency cross transactions completed for the client during the period
• D.  both A and B

Which of the following scenarios describes activities that are disallowed under the NASAA Model Rules?
I. Broker-dealer Anon observes that a client placed a stop loss order to sell her 1,500 shares of Amazon.com stock for $131 when the stock was selling for $134. Anon sold the stock for $133 when it started to fall during the day and credited the client's account with $131 per share when stock dropped further to $129 a share.
II. Penny is an agent with Broker-dealer Anon. She recently recommended that a client buy a stock that Penny thought would do well. As it turned out, Penny was wrong, and she offers to refund the commission that the client paid her.
III. Broker-dealer Anon is part of the selling group of a hot new IPO. As such, the firm purchases 50% of the shares for its own portfolio and sells the remainder to the public.

• A.  I, II, and III
• B.  I and III only
• C.  I only
• D.  I and II only

uestion No: 157
An investment adviser may act as a custodian for a client's securities if
I. the Administrator of the state doesn't have a rule prohibiting custodial arrangements.
II. he informs the state Administrator in writing that he will be acting as a custodian for the client.
III. he arranges to pay an independent certified public accountant to perform an unannounced audit of his books each year so that the accountant can report his findings to the state Administrator.

• A.  I, II and III
• B.  I and III only
• C.  I only
• D.  I and II only

Which of the following statements about agents is (are) false?

• A.  An agent must demonstrate a specific minimum level of financial stability for his registration application to be accepted.
• B.  All of the above are false statements.
• C.  If an agent files for bankruptcy, the Administrator may elect to terminate that agent's registration if the Administrator believes it is "in the public interest" to do so.
• D.  When an agent has a change of address, both he and his broker-dealer affiliate must inform the Administrator.

Which of the following would be an unsuitable recommendation for your 68-year-old client?

• A.  a Treasury Inflation Protected Security (TIPS)
• B.  a high quality corporate bond fund
• C.  a deferred annuity
• D.  an S&P 500 Index mutual fund