FINRA FINRA-SERIES-63 Exam Questions & Answers

An investment adviser

I. provides investment advice to clients.

II. sells securities to clients.

III.

buys and sells securities in their clients' accounts for the clients.

A.

I only.

B.

I and II only.

C.

I and III only.

D.

I, II, and III.

Which of the following is not a prohibited practice for a broker-dealer?

A. waiting 36 hours before mailing a check after receiving a request for a cash withdrawal from a client if the client has that much cash available in his account

B. requiring that a client who is engaged in margin transactions leave the securities with the broker-dealer in "street name"

C. recommending a security to a new client without first ascertaining that client's level of risk tolerance

D. executing a trade for an account holder based on instructions from the account holder's spouse

Nancy's Aunt Ethel died, making Nancy executrix of her estate. In going through Aunt Ethel's belongings, Nancy discovered some stock certificates that she learned had been issued by a small New Jersey firm that was still in business. The problem lay in the fact that Nancy's Aunt Ethel had moved from New Jersey to Florida years ago, and the stock is registered only in the state of New Jersey. Nancy herself is a resident of Massachusetts.

What does Nancy have to do in order to sell this stock?

A. Nancy can sell the stock without a problem as executrix of her aunt's estate.

B. Nancy will need to contact a securities law firm in Florida to help her register the stock in the state of Florida.

C. Nancy will need to contact a broker-dealer licensed in the state of New Jersey to help her with the sale of this stock.

D. Nancy will have to establish a mailing address in New Jersey before she can legally sell this stock.