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← Series 63: Regulation of Broker-Dealers & Agents
Series 63 practice questioneasyDenial vs Revocation

Which of the following is LEAST likely to be a valid reason for the Administrator to deny a broker-dealer's initial registration?

  1. AThe applicant was convicted of a securities-related misdemeanor five years ago.
  2. BThe applicant willfully violated the USA in another state two years ago.
  3. CThe Administrator finds the applicant's application incomplete.
  4. DThe applicant declares bankruptcy three months before applying.✓ Correct answer
Explanation

Why D — The applicant declares bankruptcy three months before applying.

Bankruptcy within the last ten years may be considered but is not automatic cause for denial (Section 412). Convictions for securities violations, willful violations, and incomplete applications are all explicit grounds for denial. Bankruptcy alone isn't enough unless financial responsibility is affected.

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