FINRA Uniform Securities Agent State Law Examination : Series_63

Series_63 real exams

Exam Code: Series_63

Exam Name: Uniform Securities Agent State Law Examination

Updated: Nov 09, 2026

Q & A: 255 Questions and Answers

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About FINRA Series_63 Exam

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FINRA Series_63 Exam Syllabus Topics:

SectionWeightObjectives
Topic 1: Regulations of Broker-Dealers12%- Exclusions and exemptions from registration
- Registration and post-registration requirements
- Supervision and compliance obligations
- Definition and legal status
Topic 2: Regulations of Securities and Issuers10%- Registration methods: coordination, qualification, filing
- Exempt securities and exempt transactions
- Disclosure and anti-fraud requirements
- Definition of securities
Topic 3: Regulations of Investment Advisers5%- Registration and exemptions
- Definition under Uniform Securities Act
- Recordkeeping and reporting rules
Topic 4: Ethical Practices and Fiduciary Obligations40%- Handling of customer funds and securities
- Prohibited business practices
- Anti-fraud provisions and misrepresentation
- Customer suitability and disclosure
- Advertising and communication rules
- Conflicts of interest and compensation
Topic 5: Regulations of Agents of Broker-Dealers13%- Exemptions from registration
- Definition and scope of activities
- Termination and notice requirements
- Registration procedures and Form U4
Topic 6: Regulations of Investment Adviser Representatives5%- Definition and activities requiring registration
- Registration and post-registration duties
- Exclusions and exemptions
Topic 7: Administrative Provisions and Remedies15%- Investigations, subpoenas, and orders
- Judicial review and appeals
- Powers of state securities administrators
- Civil and criminal liabilities

FINRA Uniform Securities Agent State Law Examination Sample Questions:

Question #1

Big Bo is an investment adviser representative who has a lot of the members of a well-known professional
football team as clients. In advertising his services, Big Bo can

  • A. list the names of the players he's advising as long as he has their written permission to do so.
  • B. use testimonials from any of the players who willingly provide them without compensation.
  • C. list the names of the players he's advising as long as he lists the names of all his other clients, too.
  • D. list the names of the players he's advising as long as he doesn't provide any other specifics, such as
    the amount each one has invested with him.
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

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Question #2

Alter Advisers & Associates is a small investment adviser partnership registered only in a single state.
One of the partners has died, and the surviving spouse has sold that partnership interest to the surviving
partners. Which of the following statements are true?
I. Alter Advisers must inform the state Administrator of this event.
II. Alter Advisers must inform the SEC of this event.
III. Alter Advisers must notify the firm's clients of this event.

  • A. I only
  • B. I and III only
  • C. I, II, and III
  • D. I and II only
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

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Question #3

Ms. Muffet is employed by Spyder Broker-Dealers. Her job duties include providing price quotes and
executing purchases and sales for the firm's clients. She is paid a salary plus commission. Ms. Muffet is

  • A. an agent.
  • B. an investment adviser.
  • C. an investment adviser representative.
  • D. a broker-dealer.
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

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Question #4

Bootstraps, Inc. is a family-owned business that has experienced enormous growth in the last couple of
years. The business needs more cash to support this growth and has decided to issue some promissory
notes, each with a face value of $5,000, for sale to the general public. The firm plans to hire three
individuals to help them sell these notes. These individuals will earn a commission based on the notes
they sell. Given these facts, which of the following is true?

  • A. The notes must be registered with the state, and the three individuals hired to sell the notes must be
    registered as agents with the state.
  • B. Neither the notes nor the individuals selling the notes need to be registered with the state.
  • C. Either the firm must register the notes with the state, or the individuals that are hired to sell the notes
    must be registered as agents with the state, but not both.
  • D. The notes must be registered with the state, but the individuals hired to sell them are not required to be
    registered.
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

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Question #5

A hypothecation agreement refers to

  • A. an agreement wherein a client gives his broker-dealer discretion to purchase securities that the
    broker-dealer deems appropriate in whatever quantity the broker-dealer feels appropriate and at a time
    and price the broker-dealer believes is a good deal.
  • B. an agreement signed by a client who is executing a margin transaction that allows the broker to hold
    the margined securities in street name as collateral for the loan.
  • C. an agreement that a client must sign prior to executing any short sales with the broker-dealer.
  • D. a document signed by a client indicating that he or she understands that some of the charts and
    examples presented in a broker-dealer's advertising literature are based on hypothetical trades.
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

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