Series 63 practice questioneasyAgent Definition
Under the Uniform Securities Act, an 'agent' is defined as:
- AAny firm registered with the SEC to sell securities
- BA corporation that acts as an underwriter for new issues
- CAn individual who represents a broker-dealer or issuer in effecting or attempting to effect purchases or sales of securities✓ Correct answer
- DAny person who provides financial planning services for a fee
Explanation
Why C — An individual who represents a broker-dealer or issuer in effecting or attempting to effect purchases or sales of securities
Under USA Section 401(b), an agent is any individual, other than a broker-dealer, who represents a broker-dealer or issuer in effecting or attempting to effect purchases or sales of securities. The term applies only to natural persons (individuals), not to firms or entities.
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 newly licensed agent recommends a high-yield bond to every client without reviewing their investment objectives.…
- An agent in State Y receives a bonus from her broker-dealer for selling a specific mutual fund family. According to the…
- A broker-dealer acts as a principal in a trade and charges the client a markup. What, if anything, must be disclosed to…
- Which scenario represents a conflict of interest that requires disclosure under the USA?
- Before making recommendations, agents must gather which of the following client information to meet suitability…
- Before recommending a new, complex security to any client, the agent must first determine:
- Which is true under the USA about an agent receiving a referral fee from another broker-dealer?
- A broker-dealer charges higher commissions on securities it owns compared to those it does not own. Under the USA, what…
