Series 63 practice questioneasyDefinition of Agent and Registration Necessity
Under the Uniform Securities Act (USA), which of the following individuals must register as an agent in a state?
- AA secretary at a broker-dealer who handles only clerical work.
- BAn employee who sells securities on behalf of a broker-dealer to retail clients in the state.✓ Correct answer
- CA broker-dealer executive who does not solicit or sell securities.
- DA person representing an issuer in exempt transactions only.
Explanation
Why B — An employee who sells securities on behalf of a broker-dealer to retail clients in the state.
Only individuals effecting or attempting to effect securities transactions must register as agents (USA Section 401). Option B describes such an individual. Clerical staff (A), executives with no sales function (C), and persons representing issuers in exempt transactions (D) are excluded.
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 broker-dealer with no office in State X has one retail client residing in State X. Under the USA, which statement…
- A new agent joins a broker-dealer registered in State Z. The agent plans to cold-call prospective clients in State Y,…
- Assuming all documentation is in order and the Administrator does not take action, when does an agent's registration…
- Which of the following is NOT required in a broker-dealer's registration application?
- A broker-dealer is acquired by another firm. Under the USA, how can the successor firm continue business without…
- A Canadian broker-dealer with no office in State T has five existing Canadian clients who temporarily reside in State T…
- When an agent files to withdraw registration, when does withdrawal generally become effective under the USA?
- An employee of ABC Corp. sells the company's registered stock to the company's employees in a private, nonpublic…