FINRA Series_63 : Uniform Securities Agent State Law Examination

  • Exam Code: Series_63
  • Exam Name: Uniform Securities Agent State Law Examination
  • Updated: Sep 06, 2026
  • Q & A: 255 Questions and Answers

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FINRA Series_63 Exam Syllabus Topics:

SectionWeightObjectives
Topic 1: State Securities Acts and Related Rules60%- Uniform Securities Act principles
  • 1. Registration of securities and exemptions
  • 2. State jurisdiction and definitions
- Administrator Powers
  • 1. Rulemaking and investigations
  • 2. Cease and desist orders and enforcement
Topic 2: Regulation of Investment Advisers and Representatives- Investment Adviser registration
  • 1. De minimis exemption
  • 2. State vs federal covered advisers
- Investment Adviser Representatives
  • 1. Post-registration obligations
  • 2. IAR registration requirements
Topic 3: Ethical Practices and Fiduciary Obligations40%- Client-related rules
  • 1. Disclosure and suitability principles
  • 2. Client funds and securities handling
- Ethics in securities business
  • 1. Anti-fraud provisions
  • 2. Fiduciary duties and conflicts of interest
Topic 4: Regulation of Broker-Dealers and Agents- Broker-Dealer definitions and requirements
  • 1. Agent registration criteria
  • 2. BD registration criteria
- Agent conduct and obligations
  • 1. Customer communications
  • 2. Compensation and transaction rules

FINRA Uniform Securities Agent State Law Examination Sample Questions:

Question #1

Which of the following is a security as defined by the Uniform Securities Act (USA)?

  • A. a futures option contract on wheat
  • B. Both A and B are securities as defined by the Uniform Securities Act.
  • C. a term life insurance policy
  • D. a debenture
Answer: B

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Question #2

Noah Aull is an investment adviser representative with Canto Investment Advisers. A client has called and
told Noah that he heard about a firm that had recently completed an IPO at a party he had attended that
weekend and instructed Noah to purchase shares of the company, which was now trading on the OTC
Bulletin Board. Noah did some research and felt the company was far too risky an investment for this
client, so he did not execute the trade. This turned out to be fortunate for his client since the firm became
insolvent within six months of its IPO. Has Noah done anything wrong?

  • A. Yes. Noah is guilty of not following a client's instructions and could have his license revoked.
  • B. Yes. Noah is guilty of misappropriation and could have his license revoked.
  • C. No. Noah did what he is hired to do-manage his clients' accounts to the best of his ability.
  • D. Yes. Noah is guilty of making an unauthorized transaction and could have his license revoked.
Answer: A

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Question #3

Which of the following does not necessarily have to be included in the contract between an investment
adviser and an individual client, according to the Uniform Securities Act (USA)?

  • A. a statement stipulating that the contract cannot be assigned to another party without the client's
    consent
  • B. the compensation agreement, which cannot be a percentage of the capital gains or capital appreciation
    earned on the portfolio for all but the wealthiest of individual clients.
  • C. if the investment adviser is a partnership, a statement indicating that the client will be notified if there is
    any change in the partners within a reasonable time period
  • D. a statement of the investment policy that has been agreed upon between the adviser and the client
Answer: D

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Question #4

A tombstone advertisement is

  • A. an offer to sell a new security that is being issued by an Arizona firm.
  • B. an offer to sell a new security.
  • C. the only type of advertisement that an investment advisory firm is allowed to use.
  • D. the announcement of a new security that may become available for purchase.
Answer: D

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Question #5

A broker-dealer cannot legally be

  • A. a sole-proprietorship.
  • B. A broker-dealer can be any of the above.
  • C. a partnership.
  • D. an individual.
Answer: B

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