Question 1

Which of the following is not considered to be a person, as defined by the Uniform Securities Act?

A. a 16-year old cheerleader
B. a law firm that is organized as a partnership
C. a corporation
D. a school district

Question 2

Rich Quick is a broker-dealer registered in the state of Massachusetts. He occasionally trades on abnormalities he observes in bond yield spreads for his own account, short selling a bond that appears to be overpriced based on its yield and buying a bond that is identical in almost every respect except for the price, which is less than that of the other bond. He has been able to earn arbitrage profits 95% of the time when he does this. Rich Quick

A. is in violation of securities laws. Arbitrage is a prohibited activity.
B. is skilled if he is able to earn profits 95% of the time using this strategy.
C. is trading on insider information, which is a violation of securities laws.
D. engaged in a fraudulent activity.

Updated Finra Series-63 Practice Questions BY Vaughn

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