The Series 63 tests state securities law for people who want to work as securities agents. It is run by NASAA, the North American Securities Administrators Association, and focuses on the Uniform Securities Act, the model law most states base their rules on. Try these 8 free practice questions.
Exam at a glance
8 free Series 63 practice questions
1. Under the Uniform Securities Act, an agent is best described as:
- A. Any person who buys securities
- B. An individual who represents a broker-dealer or issuer in effecting securities transactions
- C. A corporation that issues stock
- D. Any bank employee
Show answer
Answer: B. An agent is an individual (not a firm) representing a broker-dealer or issuer in effecting or trying to effect securities transactions.
2. An agent's state registration generally expires:
- A. On the agent's birthday
- B. On December 31 unless renewed
- C. After 5 years
- D. Never, once granted
Show answer
Answer: B. Under the Uniform Securities Act, registrations expire on December 31 each year unless renewed.
3. An agent tells a client, 'I'll cover any loss on this stock.' This is:
- A. Allowed if put in writing
- B. Allowed for blue-chip stocks
- C. A prohibited guarantee against loss
- D. Allowed with supervisor approval
Show answer
Answer: C. Guaranteeing a customer against loss is a prohibited practice.
4. When an agent leaves one broker-dealer for another, who must notify the Administrator?
- A. Only the agent
- B. Only the old firm
- C. The agent and both broker-dealers
- D. No one
Show answer
Answer: C. The agent, the firm being left and the new firm all must notify the Administrator promptly.
5. The state Administrator can issue a cease-and-desist order:
- A. Only after a court trial
- B. Without a prior hearing
- C. Only with FINRA's consent
- D. Only for criminal acts
Show answer
Answer: B. The Administrator may issue a cease-and-desist order without a prior hearing. The person can then ask for a hearing.
6. A broker-dealer with no office in a state that deals only with institutional investors there is generally:
- A. Required to register as a broker-dealer in that state
- B. Not considered a broker-dealer in that state
- C. Banned from that state
- D. Required to register as an investment adviser
Show answer
Answer: B. The Act excludes firms with no place of business in the state that deal only with issuers, other broker-dealers or institutional investors.
7. A client gives an agent permission to choose only the time and price for a trade. Unless the client says otherwise in writing, that permission lasts:
- A. Until the end of the business day it was given
- B. One week
- C. 30 days
- D. Indefinitely
Show answer
Answer: A. Time-and-price discretion is limited to the day it is given unless the client gives written authorization for longer.
8. Which is an unethical practice for an agent?
- A. Disclosing commissions when asked
- B. Recommending a security after reviewing the client's goals
- C. Executing trades in a client account mainly to generate commissions
- D. Keeping copies of client correspondence
Show answer
Answer: C. Excessive trading to generate commissions (churning) is a prohibited, unethical practice.
Short on time? Read Is one week enough to study for the Series 63? for a 7-day plan.
Want the full study plan, key rules and more practice? Get the complete Series 63 guide as an instant PDF.
Get the full Series 63 guide — $10Independent study aid. Not affiliated with NASAA. Original questions. No pass guarantee.