FINRA Series_63 real exam prep : Uniform Securities Agent State Law Examination

  • Exam Code: Series_63
  • Exam Name: Uniform Securities Agent State Law Examination
  • Updated: Sep 08, 2026
  • Q&As: 255 Questions and Answers

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FINRA Series_63 Exam Syllabus Topics:

SectionObjectives
Registration Procedures and Requirements- State notice filings and renewals
- Registration process for agents and broker-dealers
State Securities Acts and Related Rules- Registration of securities, broker-dealers, agents, and investment advisers
- Definitions and terminology under Uniform Securities Act
- Exempt securities and exempt transactions
Regulatory Provisions and Compliance- Recordkeeping and administrative provisions
- Enforcement actions and penalties
- Ethical practices and fiduciary obligations

FINRA Uniform Securities Agent State Law Examination Sample Questions:

Question #1

Individual states are prohibited from requiring a broker-dealer or investment adviser to file financial
reports more frequently than:

  • A. four times a year.
  • B. twice a year.
  • C. twelve times a year.
  • D. once a year.
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

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Question #2

Under the NASAA Model Rules, the statute of limitations for civil liabilities is

  • A. the earlier of three years after the discovery of facts and five years after the violation.
  • B. the earlier of two years after the discovery of the facts and four years after the violation.
  • C. three years after the discovery of the facts and four years after the violation, whichever is greater.
  • D. the earlier of two years after the discovery of facts and three years after the sale.
Reveal Solution  Discussion  0

Correct Answer: D  🗳️

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Question #3

Ken Con is an agent with Blue Sky Broker-Dealers. He gets up early each morning so that he can study
any late-breaking news that may affect the markets and figure out ways to incorporate this news into
conversations with select clients in order to pressure them to restructure their portfolios by selling
holdings they have in one particular industry to invest the money in another particular industry. Ken has
been very successful with this strategy and executes more trades for his clients than any other agent with
the firm, but is he in danger of losing his license?

  • A. It depends. If his clients have lost money, Ken may lose his license; but if a review indicates that his
    clients' accounts earn profits, then his license is safe.
  • B. No. Ken is just a successful sales person who is working harder than the other agents in the firm.
  • C. Yes. Ken is engaging in churning, a prohibited practice and can have his license revoked or
    suspended.
  • D. Yes. Ken is guilty of the prohibited practice of "tailgating."
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

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Question #4

Under NASAA Model Rules, it is permissible for the registered representative of a broker-dealer to split
his or her commission with
I. a client.
II. the broker-dealer with which the registered representative is affiliated.
III. another registered representative working for the same broker-dealer.
IV. the administrative assistant who directs calls to the registered representative and provides other
services for the agent.

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

Correct Answer: B  🗳️

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Question #5

Which of the following describes a prohibited practice in the sale of shares of investment companies?
I. Sandy Slacker hands her client the fund's prospectus and tells him that the prospectus will provide him
all that he needs to know about loads and fees associated with the fund.
II. Elliot Eager tells a client who has an investment objective that includes current income that a certain
bond fund has a current yield of 8% and provides the client with a prospectus so that the client can peruse
the average annual returns that the fund has generated in past years when the client has the time.
III. After explaining all the fees and loads involved in two different bond funds as well as the difference
between current yield and total return, Patty shows the client the data on the average annual returns that
the two bond funds provided. She explains to the client that the municipal bond fund has a lower yield
than the similar-risk corporate bond fund because the interest income the client will receive from the
municipal bond fund will be free from federal taxation, while the interest income on the corporate bond
fund is fully taxable.

  • A. I and III only
  • B. I and II only
  • C. All the choices describe prohibited practices in the sale of shares of investment companies.
  • D. I only
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

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