Series 63: Exercise

Exercise

Choose FRAUDULENT or NOT FRAUDULENT

1. _____ An investment adviser fails to disclose facts about a financial condition that is not material to its effectiveness as a firm.

2. _____ An adviser purchases a security for his own account in advance of purchasing a large block of the same securities for a client. He makes this purchase because he expects the price of the security to get a boost from his client’s purchase.

3. _____ An employee of a firm reports his securities holdings to the firm’s compliance office one week after first obtaining inside information.

Answers

1. Not fraudulent. On