Series 63 practice questioneasyBroker-Dealer Definition — Exclusions
In a state-law practice set, a candidate reviews the following scenario. The key is the registration, exemption, or ethical rule doing the real work. Which of the following entities is EXCLUDED from the definition of broker-dealer under the Uniform Securities Act?
- AA firm that underwrites municipal bonds
- BAn agent representing a broker-dealer
- CA discount brokerage firm
- DA bank or savings institution✓ Correct answer
Explanation
Why D — A bank or savings institution
Under USA Section 401(c), banks, savings institutions, and trust companies are excluded from the definition of broker-dealer when acting in their regular capacity. Agents are excluded because they are defined separately as individuals, not firms. Underwriters and discount brokerages are generally included in the broker-dealer definition. The extra setup is just noise; the controlling state-law rule stays the same.
Turn it into reps
Reading one answer is not the same as being ready
Lucky the Banker is a free practice app with 646+ Series 63 questions, weak-area tracking, and timed mock exams. No credit card, no paywall.
Related Regulation of Broker-Dealers & Agents questions
- For a mock NASAA exam, assume the administrator is testing this exact point. The key is the registration, exemption, or…
- In a state-administrator case study, the scenario starts here. Read it as a Uniform Securities Act issue rather than a…
- During a compliance drill, focus on how the Uniform Securities Act applies here. The key is the registration,…
- For a licensing checkpoint quiz, treat the following as the opening fact pattern. Read it as a Uniform Securities Act…