Free FINRA Series_63 Exam Dumps Questions & Answers

Which of the following are examples of the prohibited practice of manipulation in the securities markets?
I. Broker-Dealer Joker is unhappy with its investment in the stock of a speculative firm and engages
another broker-dealer to purchase a large number of shares from it, with the unofficial agreement to buy
back those shares, offer more shares which the second broker-dealer will purchase, and so on.
II. Broker-Dealer Joker has a large short position in the stock of a certain corporation. Joker offers a
bonus to its agents who effect sale transactions in the stock.
III. A client calls Broker-Dealer Joker with a request to purchase 20 bonds issued by Massachusetts
Institute of Technology (MIT.) The bonds are currently selling for their par value of $1,000. Knowing this,
Joker offers to sells the client the bonds for $120 per $100 of par, or $1,200 per $1,000 bond.

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

Once a person has filed an application with the Administrator, and in doing so has truthfully disclosed
every material fact, how long does the Administrator have after the effective date of the registration to
commence a proceeding to deny, suspend, or revoke that person's license based on those facts?

• A.  30 days.
• B.  60 days.
• C.  one year.
• D.  90 days.

"T + 3" refers to

• A.  the form that is filled out and sent to the client confirming that the trade has been executed.
• B.  the fact that the settlement date will be three business days after the trade date, which is the "regular
  way settlement" for transactions involving stocks and corporate and municipal bonds.
• C.  a procedure to minimize the potential for money laundering.
• D.  the form, also known as a "trade ticket," that is filled out when an order is entered into the market.

A broker-dealer of commodity futures contracts has been profiting by trading for its own account either
before or after executing a client's trade on the same commodity, depending on which will be most
advantageous. Under the Uniform Securities Act, the broker-dealer is guilty of

• A.  churning.
• B.  unauthorized transactions.
• C.  fraud.
• D.  nothing. The Uniform Securities Act (USA) deals only with securities, and a commodity futures contract
  is not a security.

Which of the following funds can an agent indicate is "no load?"

• A.  a fund with no front-end or back-end load that has 12b-1 fees equal to 0.25% of the average net assets
  of the fund.
• B.  Both A and C can be advertised as "no load" funds.
• C.  a fund with no front-end or back-end load that has 12b-1 fees equal to 0.30% of the average net assets
  of the fund.
• D.  a fund with no front-end load that has 12b-1 fees equal to 0.10% of the average net assets of the fund
  and a rear-end load that varies depending on how long the investor has held the shares.