Series 63 practice questionmediumFraudulent Devices: Examples
Which of the following is NOT considered a fraudulent device under the USA?
- AMaking a material misrepresentation
- BOmitting a material fact
- CExecuting trades with client authority✓ Correct answer
- DEngaging in manipulative practices
Explanation
Why C — Executing trades with client authority
Executing authorized trades is not fraud. The others (A, B, D) are explicitly defined as fraudulent under Section 501.
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 Remedies & Administrative Provisions questions
- A representative tells a client, 'This stock will double in a month.' Under the USA, this statement is:
- A broker-dealer incorporated in State A with its principal office in State B has a client in State C who was sold…
- If an agent provides clients with false account statements showing higher returns than actually earned, this is:
- An agent tells a client, 'I will personally make up for any losses you incur.' Under the USA, this is:
- Under the USA, a fact is considered 'material' if:
- Which of the following best describes the difference between an omission and a misstatement under USA Section 501?
- An agent in State Q recommends high-risk penny stocks to all clients, regardless of their investment goals. Under the…
- An agent learns confidential material information about a public company and passes it to a client, who trades on it.…