FINRA Uniform Securities Agent State Law Examination : Series_63

  • Exam Code: Series_63
  • Exam Name: Uniform Securities Agent State Law Examination
  • Updated: Sep 18, 2026
  • Q & A: 255 Questions and Answers

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FINRA Series_63 Exam Syllabus Topics:

SectionWeightObjectives
Ethical Practices and Fiduciary Obligations40%- Client-related rules
  • 1. Disclosure and suitability principles
  • 2. Client funds and securities handling
- Ethics in securities business
  • 1. Fiduciary duties and conflicts of interest
  • 2. Anti-fraud provisions
Regulation of Broker-Dealers and Agents- Agent conduct and obligations
  • 1. Customer communications
  • 2. Compensation and transaction rules
- Broker-Dealer definitions and requirements
  • 1. BD registration criteria
  • 2. Agent registration criteria
Regulation of Investment Advisers and Representatives- Investment Adviser Representatives
  • 1. Post-registration obligations
  • 2. IAR registration requirements
- Investment Adviser registration
  • 1. State vs federal covered advisers
  • 2. De minimis exemption
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

FINRA Uniform Securities Agent State Law Examination Sample Questions:

Question #1

Which of the following is not one of the criteria for a security to be eligible for registration by notification?

  • A. If the security to be issued is an equity interest in the firm, its offer price has to be at least $5 a
  • B. The issuer must never have defaulted on any bond or long-term lease obligation.
  • C. The issuer must have a net worth of $4 million, or its net income before tax for at least two of the
  • D. The issuer must have preferred stockholders as well as common stockholders.
Reveal Solution  Discussion  0

Correct Answer: D  🗳️

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Question #2

An agent cannot tell a client that a mutual fund is "no load" if the fund has
I. a front-end load
II. a contingent deferred sales load
III. 12b-1 fees

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

Correct Answer: A  🗳️

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Question #3

It has come to the attention of the Administrator of the state that Samuel Shyster provided false
information on his application to become a registered investment adviser with the state. Prior to revoking
Samuel's license, the Administrator will provide Samuel with which of the following?
I. prior notice
II. an opportunity to fill out a new registration statement
III. an opportunity for a hearing
IV. a written statement regarding the facts and the legal consequences

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

Correct Answer: C  🗳️

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Question #4

What criminal penalties are specified for "willful violations" of the Uniform Securities Act?

  • A. license suspension.
  • B. license cancellation.
  • C. up to 3 years in prison or a $5,000 fine, or both.
  • D. up to 5 years in prison or a $10,000 fine, or both.
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

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Question #5

Under the 2002 Uniform Securities Act, registration by coordination allows:

  • A. federal covered securities to be registered simultaneously with the SEC and with the states in which
    the securities will be offered for sale.
  • B. issuers of federal covered securities to submit only a notice filing with the Administrator of states in
    which the securities will be offered for sale.
  • C. securities that do not fall within the category of federal covered securities to be registered
    simultaneously with the SEC and with the states in which the securities will be offered for sale.
  • D. both state-registered and out-of-state investment bankers to participate in the underwriting and
    registration of a new security issue.
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

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