Practice Quiz

FINRA Series 63 (NASAA)

Category - Series 63

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Which of the following persons would not be required to register with the state as an agent under the guidelines of the Uniform Securities Act (USA)?
  1. Keith is a salaried employee of Middlesex County in Massachusetts who sells revenue bonds issued by the county to the public.
  2. John is employed by TrustUs Corporation to sell shares of the firm’s stock to the firm’s employees and receives a commission on the shares he sells.
  3. Stefan is a sales representative for SecureMoney Broker-Dealers and sells only mutual fund shares.
  4. Preetham is part-owner of SecureMoney Broker-Dealers and executes the purchase and sale of securities for the firm’s customers.
Explanation
Answer: A - Keith would not have to register as an agent since he is a salaried employee of a county in Massachusetts selling county-issued bonds to the public. He is not representing a broker-dealer; he is not receiving a commission on the bonds he sells; and he is selling exempt (government-issued) securities. John receives a commission on his sales, so he is considered to be an agent. Stefan is a sales representative employed by a broker-dealer, which makes him an agent under USA guidelines. Even though Preetham is part-owner of the broker-dealer for which he is effecting transactions, he is acting as an agent in doing so.
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