Interviews - Hector
Age: Not telling (mid 30s)
Profession: Financial adviser
College major: Business
Hector mostly studied using the CD-Rom. In doing so, he went over the chapters and then took a final test. He also took all of the practice exams and thinks that in total, he studied for roughly 20 hours.
Exam Question Recall
State rules, uniformity laws (Blue Sky Laws)
What would be insider trading?
Insider trading is the use of nonpublic information for the direct benefit of trading. Insiders who use nonpublic information as the basis for personal gain are in violation of the Securities Exchange Act of 1934. What's more, the 1988 Insider Trading and Securities Enforcement Act mandates that a person convicted of insider trading can face up to 10 years in jail, be fined $1 million dollars or up to 300% of profits gained (or losses avoided).
What would be a mistake (fraudulent act), and how to take care of the problem?
If an agent finds that he/she has violated the USA, that agent can attempt to rescind a sale.
What is the difference between an agent and broker-dealer?
Directly from the act, the definition is:
"broker-dealer" means a person engaged in the business of effecting transactions in securities for the account of others or for the person's own account. The term does not include:
- An agent;
- An issuer;
A bank or savings institution if its activities as a broker-dealer are limited to those specified as:
- Banking institution organized under the laws of the United States
- A savings institution, trust company, credit union or a depository institution.
- Those registered under the Securities Exchange Act of 1934, or not required to register because of such.
- An international banking institution; or
A person excluded by rule adopted or order issued under the USA
The USA specifically defines a sales representative (agent) as:
"An individual, other than a broker-dealer, who represents a broker-dealer in effecting or attempting to effect purchases or sales of securities, or
- Represents an issuer in effecting or attempting to effect purchases or sales of the issuer's securities."
- "An individual, other than a broker-dealer, who represents a broker-dealer in effecting or attempting to effect purchases or sales of securities, or
Final Words of Advice
Use the CD, if there is one, or take as many of the practice exams as possible! According to Hector, the practice exams were harder than the actual exam and definitely helped him pass. Hector recommends that you study to the point where you are getting 90% correct on the practice exams.
Know your stuff - it is easier to fail than most people think.
Author's Comments: Hector's experience is probably typical of the average person's Series 63 exam. While he studied well for the exam, he barely skated by. Though many would say he studied "just enough, but not too much", it is also important to note that a few bad answers could have been the difference between him passing and failing. Thus, if you identify with this interview, it is probably a good idea to study even more, just to make sure that one tough question does not return a failing score, instead of a 72