Series 63 practice questioneasyFraud: Not Limited by State Borders
An agent in State Y commits fraud in the sale of a security to a resident of State Z. Under the USA, who may take action?
- AOnly State Y Administrator
- BBoth State Y and State Z Administrators✓ Correct answer
- COnly State Z Administrator
- DNeither, only the SEC
Explanation
Why B — Both State Y and State Z Administrators
Fraudulent activity affecting a state’s residents allows both the state where the offer originated (Y) and where it was received (Z) to take action (USA Section 414). The SEC (D) does not preclude state action.
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 Remedies & Administrative Provisions questions
- An agent in State X tells clients, 'Because I am registered, you can be confident I have been endorsed by the state…
- Under the USA, which of the following would be considered making an untrue statement of a material fact?
- A broker-dealer arranges for trades between accounts it controls to inflate trading volume and attract investors. Which…
- An agent excessively trades in a client’s account to generate commissions, without regard to the client’s objectives.…
- Under the USA, an agent tells a client the firm is 'the largest in the state,' although it is not. This is:
- Which of the following is an example of market manipulation prohibited under USA Section 501?
- An agent learns confidential material information about a public company and passes it to a client, who trades on it.…
- A registered agent in State X is discovered to have engaged in dishonest and unethical business practices. Which of the…