Practice Quiz

FINRA Series 63 (NASAA)

Category - Series 63

Start a Study Session Sign up for Question of the Day
Under the Uniform Securities Act (USA), which of the following statements would be disallowed?
  1. The government of the U.S. guarantees a 3% interest rate, to be paid semiannually, on a new 5-year Treasury note.
  2. A sales representative of GetErDone Broker-Dealers guarantees that a client can expect an average annual rate of return of 2% on a mutual fund investment the sales representative is selling, pointing to the fact that the fund has returned an average annual rate of return of 6% over the past ten years.
  3. An insurance company guarantees a fixed payment of $300 a month for life on an annuity it is selling.
  4. Neither the statements in Selections B or C would be allowed under the guidelines of the Uniform Securities Act.
Explanation
Answer: B - A sales representative (aka an agent) of a broker-dealer may not make any guarantees. Only three entities are allowed to make guarantees under the Act: Parent companies, which may guarantee the securities of one of its subsidiaries, the U.S. government, and insurance companies.
Was this helpful? Upvote!
Login to contribute your own answer or details
Start a Study Session Sign up for Question of the Day

Top questions

Related questions

Most popular on PracticeQuiz