Series 63 practice questioneasyNet Capital Requirements
According to the USA, broker-dealer net capital requirements imposed by a state Administrator:
- ACannot exceed SEC federal requirements.✓ Correct answer
- BMust be at least twice the minimum set by the SEC.
- CAre only required if the firm sells IPOs.
- DApply only to firms that are not members of FINRA.
Explanation
Why A — Cannot exceed SEC federal requirements.
State Administrators cannot impose net capital requirements that exceed federal (SEC) levels (USA Section 202(c)). The other options are incorrect or based on false conditions.
Turn it into reps
Reading one answer is not the same as being ready
Lucky the Banker is a free practice app with 1,051+ Series 63 questions, weak-area tracking, and timed mock exams. No credit card, no paywall.
Spot an error in this question or explanation? Tell us — we fix these fast.
Related Regulation of Broker-Dealers & Agents questions
- A state Administrator may require a broker-dealer to post a surety bond as a condition of registration if the firm:
- Under the Uniform Securities Act, when must a broker-dealer promptly update their registration information with the…
- Which of the following financial reports may state Administrators require broker-dealers to file?
- An agent with discretion over a client’s account trades excessively to generate commissions, but always makes trades…
- An agent changes her residential address. Under the USA, what action must be taken with respect to her registration?
- A broker-dealer arranges a trade between two of its clients (a cross trade) and collects a commission from both.…
- An individual who represents an issuer in selling the issuer's own securities is generally required to register as an…
- If an agent omits to tell a client about a higher fee associated with a class of mutual fund shares recommended, this…