Series 63 practice questioneasyBroker-Dealer Definition — Exclusions
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.
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
- The state Administrator may require a registered broker-dealer to post a surety bond. Which of the following is TRUE…
- ABC Securities, a broker-dealer registered in State X, opens a new branch office in State Y where it is not yet…
- Smith & Co., a registered broker-dealer in State A, changes its legal form from a partnership to a corporation. The…
- Once registered, a broker-dealer's registration expires: