A broker-dealer gives customers advice about securities. When is it NOT an investment adviser under the Uniform Securities Act?Uniform Securities Act of 1956 with NASAA updates and commentary, Section 401(f)(4). Outline: NASAA Series 63 Test Specifications (effective June 12, 2023), I. Regulations of Investment Advisers (exclusions from registration).
An adviser with no place of business in a state had four retail clients there in the preceding twelve months and no other clients there. Must it register in that state?Uniform Securities Act of 1956 with NASAA updates and commentary, Section 201(c)(2)(B). Outline: NASAA Series 63 Test Specifications (effective June 12, 2023), I. Regulations of Investment Advisers (activities requiring registration).
Under the Uniform Securities Act, who is an investment adviser?Uniform Securities Act of 1956 with NASAA updates and commentary, Section 401(f). Outline: NASAA Series 63 Test Specifications (effective June 12, 2023), I. Regulations of Investment Advisers (definition).
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Investment adviser representatives 3
A state-registered investment adviser hires an investment adviser representative. Who must promptly notify the Administrator?Uniform Securities Act of 1956 with NASAA updates and commentary, Section 201(d). Outline: NASAA Series 63 Test Specifications (effective June 12, 2023), II. Regulations of Investment Adviser Representatives (activities requiring registration).
An individual with a place of business in the state works for a federal covered adviser and solicits the sale of its advisory services. Under the Uniform Securities Act the individual is:Uniform Securities Act of 1956 with NASAA updates and commentary, Section 401(g). Outline: NASAA Series 63 Test Specifications (effective June 12, 2023), II. Regulations of Investment Adviser Representatives (definition).
Which activity makes an individual employed by a state-registered investment adviser an investment adviser representative?Uniform Securities Act of 1956 with NASAA updates and commentary, Section 401(g). Outline: NASAA Series 63 Test Specifications (effective June 12, 2023), II. Regulations of Investment Adviser Representatives (definition).
Broker-dealers 7
A firm has no place of business in a state and effects transactions there only with insurance companies and other broker-dealers. In that state the firm is:Uniform Securities Act of 1956 with NASAA updates and commentary, Section 401(c)(4)(A). Outline: NASAA Series 63 Test Specifications (effective June 12, 2023), III. Regulations of Broker-Dealers (exclusions from registration).
A firm licensed in its home state has no office in a second state. It sells to an existing customer who is visiting the second state but does not reside there. In the second state the firm is:Uniform Securities Act of 1956 with NASAA updates and commentary, Section 401(c)(4)(B). Outline: NASAA Series 63 Test Specifications (effective June 12, 2023), III. Regulations of Broker-Dealers (exclusions from registration).
An agent defrauds customers, and the Administrator finds that his broker-dealer failed reasonably to supervise him. If it is in the public interest, what may the Administrator do to the firm's registration?Uniform Securities Act of 1956 with NASAA updates and commentary, Section 204(a)(2)(J). Outline: NASAA Series 63 Test Specifications (effective June 12, 2023), III. Regulations of Broker-Dealers (broker-dealer agent supervision).
There is no denial order in effect and no pending proceeding. When does a broker-dealer's registration become effective under the Uniform Securities Act?Uniform Securities Act of 1956 with NASAA updates and commentary, Section 202(a). Outline: NASAA Series 63 Test Specifications (effective June 12, 2023), III. Regulations of Broker-Dealers (registration).
Under the Uniform Securities Act, a broker-dealer is a person engaged in the business of:Uniform Securities Act of 1956 with NASAA updates and commentary, Section 401(c). Outline: NASAA Series 63 Test Specifications (effective June 12, 2023), III. Regulations of Broker-Dealers (definition of a broker-dealer).
Unless renewed, when does a broker-dealer's registration expire under the Uniform Securities Act?Uniform Securities Act of 1956 with NASAA updates and commentary, Section 201(e). Outline: NASAA Series 63 Test Specifications (effective June 12, 2023), III. Regulations of Broker-Dealers (post-registration requirements).
Which of these is NOT a broker-dealer under the Uniform Securities Act?Uniform Securities Act of 1956 with NASAA updates and commentary, Section 401(c). Outline: NASAA Series 63 Test Specifications (effective June 12, 2023), III. Regulations of Broker-Dealers (definition of a broker-dealer).
Agents of broker-dealers 8
A registered broker-dealer hires a salesperson who starts offering securities to customers in the state before he is registered. Who has violated the Uniform Securities Act?Uniform Securities Act of 1956 with NASAA updates and commentary, Section 201(a) and (b). Outline: NASAA Series 63 Test Specifications (effective June 12, 2023), IV. Regulations of Agents of Broker-Dealers (activities requiring registration).
An agent terminates his connection with a broker-dealer. Who must promptly notify the Administrator?Uniform Securities Act of 1956 with NASAA updates and commentary, Section 201(b). Outline: NASAA Series 63 Test Specifications (effective June 12, 2023), IV. Regulations of Agents of Broker-Dealers (post-registration).
An agent's registration has no effect for any period in which the agent is:Uniform Securities Act of 1956 with NASAA updates and commentary, Section 201(b). Outline: NASAA Series 63 Test Specifications (effective June 12, 2023), IV. Regulations of Agents of Broker-Dealers (registration).
An individual represents an issuer in transactions with the issuer's existing employees, and nobody is paid a commission for soliciting them. Under the Uniform Securities Act the individual is:Uniform Securities Act of 1956 with NASAA updates and commentary, Section 401(b)(1)(D). Outline: NASAA Series 63 Test Specifications (effective June 12, 2023), IV. Regulations of Agents of Broker-Dealers (exclusions from registration).
Information in a document an agent filed with the Administrator becomes inaccurate in a material respect. What does the Uniform Securities Act require of the registrant?Uniform Securities Act of 1956 with NASAA updates and commentary, Section 203(d). Outline: NASAA Series 63 Test Specifications (effective June 12, 2023), IV. Regulations of Agents of Broker-Dealers (update uniform forms).
Is a director of a broker-dealer an agent under the Uniform Securities Act?Uniform Securities Act of 1956 with NASAA updates and commentary, Section 401(b). Outline: NASAA Series 63 Test Specifications (effective June 12, 2023), IV. Regulations of Agents of Broker-Dealers (definition of an agent).
May the Administrator deny an agent's registration solely because the applicant lacks experience?Uniform Securities Act of 1956 with NASAA updates and commentary, Section 204(b)(3). Outline: NASAA Series 63 Test Specifications (effective June 12, 2023), IV. Regulations of Agents of Broker-Dealers (registration).
Under the Uniform Securities Act, an agent is:Uniform Securities Act of 1956 with NASAA updates and commentary, Section 401(b). Outline: NASAA Series 63 Test Specifications (effective June 12, 2023), IV. Regulations of Agents of Broker-Dealers (definition of an agent).
Securities and issuers 5
A security is registered by coordination and every condition is met. When does its state registration become effective?Uniform Securities Act of 1956 with NASAA updates and commentary, Section 303(c). Outline: NASAA Series 63 Test Specifications (effective June 12, 2023), V. Regulations of Securities and Issuers (state registration requirements).
Under the Howey test, an investment contract exists when money is invested in a common enterprise with a reasonable expectation of profits to be derived from:SEC, Framework for "Investment Contract" Analysis of Digital Assets, the Howey test. Outline: NASAA Series 63 Test Specifications (effective June 12, 2023), V. Regulations of Securities and Issuers (definition of securities).
Under the Uniform Securities Act it is unlawful to offer or sell a security in the state unless it is registered, it is a federal covered security, or:Uniform Securities Act of 1956 with NASAA updates and commentary, Section 301. Outline: NASAA Series 63 Test Specifications (effective June 12, 2023), V. Regulations of Securities and Issuers (state registration requirements).
Unprompted, a customer asks a registered broker-dealer to buy shares of an unregistered, non-exempt stock from another holder. Under the Uniform Securities Act this sale is:Uniform Securities Act of 1956 with NASAA updates and commentary, Section 402(b)(3). Outline: NASAA Series 63 Test Specifications (effective June 12, 2023), V. Regulations of Securities and Issuers (exemptions from registration).
Which of these is NOT a security under the Uniform Securities Act?Uniform Securities Act of 1956 with NASAA updates and commentary, Section 401(m). Outline: NASAA Series 63 Test Specifications (effective June 12, 2023), V. Regulations of Securities and Issuers (definition of securities).
Remedies and administrative provisions 7
A buyer who still owns a security receives a written offer to refund the price with interest and does not accept it within thirty days. What follows?Uniform Securities Act of 1956 with NASAA updates and commentary, Section 410(g). Outline: NASAA Series 63 Test Specifications (effective June 12, 2023), VI. Remedies and Administrative Provisions (other penalties and liabilities).
A person harmed by the Administrator's final order may get court review by filing a petition within:Uniform Securities Act of 1956 with NASAA updates and commentary, Section 411(a). Outline: NASAA Series 63 Test Specifications (effective June 12, 2023), VI. Remedies and Administrative Provisions (authority of state securities Administrator).
Apart from a summary postponement or suspension, no order may be entered against a registrant without prior notice, an opportunity for hearing, and:Uniform Securities Act of 1956 with NASAA updates and commentary, Section 204(f). Outline: NASAA Series 63 Test Specifications (effective June 12, 2023), VI. Remedies and Administrative Provisions (administrative actions).
To deny, suspend or revoke a registration, the Administrator must find one of the listed grounds and also that the order is:Uniform Securities Act of 1956 with NASAA updates and commentary, Section 204(a). Outline: NASAA Series 63 Test Specifications (effective June 12, 2023), VI. Remedies and Administrative Provisions (administrative actions).
Under the Uniform Securities Act with NASAA's updates, a buyer may not sue for civil liability more than:Uniform Securities Act of 1956 with NASAA updates and commentary, Section 410(f). Outline: NASAA Series 63 Test Specifications (effective June 12, 2023), VI. Remedies and Administrative Provisions (other penalties and liabilities).
What is the limit of SIPC protection for a customer of a failed SIPC-member brokerage firm?Securities Investor Protection Corporation, What SIPC Protects. Outline: NASAA Series 63 Test Specifications (effective June 12, 2023), VI. Remedies and Administrative Provisions (other penalties and liabilities: SIPC coverage).
What is the most a court may impose for a willful violation under section 409 of the Uniform Securities Act, as NASAA publishes it?Uniform Securities Act of 1956 with NASAA updates and commentary, Section 409(a). Outline: NASAA Series 63 Test Specifications (effective June 12, 2023), VI. Remedies and Administrative Provisions (other penalties and liabilities).
Communication with customers and prospects 12
A broker-dealer is controlled by the issuer of a stock it is about to sell to a customer. It tells the customer so by telephone before the trade. What else is required?NASAA Model Rule, Dishonest or Unethical Business Practices of Broker-Dealers and Agents (amended April 7, 2025), section 1.t. Outline: NASAA Series 63 Test Specifications (effective June 12, 2023), VII. Communication with Customers and Prospects (required product disclosures).
A broker-dealer may tell a customer that a security is offered "at the market" only if it knows or has reasonable grounds to believe that:NASAA Model Rule, Dishonest or Unethical Business Practices of Broker-Dealers and Agents (amended April 7, 2025), section 1.o. Outline: NASAA Series 63 Test Specifications (effective June 12, 2023), VII. Communication with Customers and Prospects (required product disclosures).
A broker-dealer promises a customer in writing that it will make up any loss in the customer's account. Under NASAA's model rule this is:NASAA Model Rule, Dishonest or Unethical Business Practices of Broker-Dealers and Agents (amended April 7, 2025), section 1.q. Outline: NASAA Series 63 Test Specifications (effective June 12, 2023), VII. Communication with Customers and Prospects (performance guarantees prohibition).
A clause in a customer agreement says the customer waives compliance with the Uniform Securities Act. That clause is:Uniform Securities Act of 1956 with NASAA updates and commentary, Section 410(i). Outline: NASAA Series 63 Test Specifications (effective June 12, 2023), VII. Communication with Customers and Prospects (customer agreements).
A customer buys securities in an offering. By when must the broker-dealer furnish the final prospectus, or a preliminary prospectus with a document that completes it?NASAA Model Rule, Dishonest or Unethical Business Practices of Broker-Dealers and Agents (amended April 7, 2025), section 1.l. Outline: NASAA Series 63 Test Specifications (effective June 12, 2023), VII. Communication with Customers and Prospects (required product disclosures).
An agent tells a prospect: "This stock is registered with the state, so the Administrator has approved it." Under the Uniform Securities Act the statement is:Uniform Securities Act of 1956 with NASAA updates and commentary, Section 405. Outline: NASAA Series 63 Test Specifications (effective June 12, 2023), VII. Communication with Customers and Prospects (unlawful representations concerning registration).
For a new account that is not institutional, FINRA Rule 4512 calls for the name and contact information of a trusted contact person of what minimum age?FINRA Rule 4512, Customer Account Information, paragraph (a)(1)(F). Outline: NASAA Series 63 Test Specifications (effective June 12, 2023), VII. Communication with Customers and Prospects (customer agreements: new account).
Under FINRA Rule 2210, an email made available to 25 or fewer retail investors within any 30 calendar-day period is:FINRA Rule 2210, Communications with the Public, paragraph (a)(2). Outline: NASAA Series 63 Test Specifications (effective June 12, 2023), VII. Communication with Customers and Prospects (correspondence and advertising: email and digital messaging).
Under Regulation T, what margin is required for a long position in a margin equity security?Federal Reserve Regulation T, 12 CFR 220.12. Outline: NASAA Series 63 Test Specifications (effective June 12, 2023), VII. Communication with Customers and Prospects (customer agreements: margin).
What may an agent truthfully say that his own effective registration with the state shows?Uniform Securities Act of 1956 with NASAA updates and commentary, Section 405(a). Outline: NASAA Series 63 Test Specifications (effective June 12, 2023), VII. Communication with Customers and Prospects (unlawful representations concerning broker-dealer agent registration).
When must a broker-dealer secure a properly executed written margin agreement from a customer?NASAA Model Rule, Dishonest or Unethical Business Practices of Broker-Dealers and Agents (amended April 7, 2025), section 1.h. Outline: NASAA Series 63 Test Specifications (effective June 12, 2023), VII. Communication with Customers and Prospects (customer agreements: margin).
Which sales piece does NASAA's model rule give as an example of deceptive or misleading advertising?NASAA Model Rule, Dishonest or Unethical Business Practices of Broker-Dealers and Agents (amended April 7, 2025), section 1.s. Outline: NASAA Series 63 Test Specifications (effective June 12, 2023), VII. Communication with Customers and Prospects (correspondence and advertising).
Ethical practices and obligations 15
A broker-dealer delays a disbursement it believes could lead to financial exploitation of an eligible adult. With no agency request or court order to extend it, the delay expires no later than:NASAA Model Legislation or Regulation to Protect Vulnerable Adults from Financial Exploitation (2016), Section 7(2). Outline: NASAA Series 63 Test Specifications (effective June 12, 2023), VIII. Ethical Practices and Obligations (exploitation of vulnerable adults).
A broker-dealer sells a customer stock from its own inventory at a price far above the current market. Under NASAA's model rule, the fault is a price that was:NASAA Model Rule, Dishonest or Unethical Business Practices of Broker-Dealers and Agents (amended April 7, 2025), section 1.k. Outline: NASAA Series 63 Test Specifications (effective June 12, 2023), VIII. Ethical Practices and Obligations (markups).
A customer asks her agent to keep a stock power she has signed "for safekeeping". Under NASAA's model rule, the agent:NASAA Model Rule, Dishonest or Unethical Business Practices of Broker-Dealers and Agents (amended April 7, 2025), section 2.a. Outline: NASAA Series 63 Test Specifications (effective June 12, 2023), VIII. Ethical Practices and Obligations (custody).
An agent may share in the profits or losses of a customer's account only with:NASAA Model Rule, Dishonest or Unethical Business Practices of Broker-Dealers and Agents (amended April 7, 2025), section 2.d. Outline: NASAA Series 63 Test Specifications (effective June 12, 2023), VIII. Ethical Practices and Obligations (sharing in profits and losses in a customer account).
An agent reasonably believes that a 70-year-old customer is being financially exploited. Under NASAA's model act, whom shall the agent promptly notify?NASAA Model Legislation or Regulation to Protect Vulnerable Adults from Financial Exploitation (2016), Section 3. Outline: NASAA Series 63 Test Specifications (effective June 12, 2023), VIII. Ethical Practices and Obligations (exploitation of vulnerable adults).
An agent wants to effect a securities transaction that will not be recorded on his broker-dealer's regular books. When does NASAA's model rule allow it?NASAA Model Rule, Dishonest or Unethical Business Practices of Broker-Dealers and Agents (amended April 7, 2025), section 2.b. Outline: NASAA Series 63 Test Specifications (effective June 12, 2023), VIII. Ethical Practices and Obligations (selling away).
By what test does NASAA's model rule judge whether trading induced in a customer's account is excessive?NASAA Model Rule, Dishonest or Unethical Business Practices of Broker-Dealers and Agents (amended April 7, 2025), section 1.b. Outline: NASAA Series 63 Test Specifications (effective June 12, 2023), VIII. Ethical Practices and Obligations (excessive trading).
Effecting a transaction in a security that involves no change in its beneficial ownership is listed in NASAA's model rule as:NASAA Model Rule, Dishonest or Unethical Business Practices of Broker-Dealers and Agents (amended April 7, 2025), section 1.p(1). Outline: NASAA Series 63 Test Specifications (effective June 12, 2023), VIII. Ethical Practices and Obligations (market manipulation).
Illegal insider trading generally means buying or selling a security, in breach of a relationship of trust and confidence, on the basis of:Investor.gov (SEC), Insider Trading. Outline: NASAA Series 63 Test Specifications (effective June 12, 2023), VIII. Ethical Practices and Obligations (insider trading).
Sure that a stock will rise, an agent buys it for a customer whose account is not discretionary and tells her afterward. Under NASAA's model rule this is:NASAA Model Rule, Dishonest or Unethical Business Practices of Broker-Dealers and Agents (amended April 7, 2025), section 1.f. Outline: NASAA Series 63 Test Specifications (effective June 12, 2023), VIII. Ethical Practices and Obligations (trading authorization).
Under FINRA Rule 3210, what does a person associated with a member firm need before opening a securities account at another firm?FINRA Rule 3210, Accounts At Other Broker-Dealers and Financial Institutions, paragraph (a). Outline: NASAA Series 63 Test Specifications (effective June 12, 2023), VIII. Ethical Practices and Obligations (outside securities accounts).
Under NASAA's model act on financial exploitation, an "eligible adult" includes a person aged:NASAA Model Legislation or Regulation to Protect Vulnerable Adults from Financial Exploitation (2016), Section 2(3). Outline: NASAA Series 63 Test Specifications (effective June 12, 2023), VIII. Ethical Practices and Obligations (exploitation of vulnerable adults).
Under NASAA's model rule, which of these is a dishonest or unethical practice for an agent?NASAA Model Rule, Dishonest or Unethical Business Practices of Broker-Dealers and Agents (amended April 7, 2025), section 2.a. Outline: NASAA Series 63 Test Specifications (effective June 12, 2023), VIII. Ethical Practices and Obligations (loans to and from customers).
With whom may an agent split commissions from the sale of securities?NASAA Model Rule, Dishonest or Unethical Business Practices of Broker-Dealers and Agents (amended April 7, 2025), section 2.e. Outline: NASAA Series 63 Test Specifications (effective June 12, 2023), VIII. Ethical Practices and Obligations (commissions).
Without written discretionary authority from the customer, what may an agent decide about a customer's order?NASAA Model Rule, Dishonest or Unethical Business Practices of Broker-Dealers and Agents (amended April 7, 2025), section 1.g. Outline: NASAA Series 63 Test Specifications (effective June 12, 2023), VIII. Ethical Practices and Obligations (discretion).
This Series 63 practice test asks 60 questions of our own on state securities law: who must register, exemptions, remedies and ethical practices. Unofficial: not affiliated with or endorsed by NASAA or FINRA.
Read the full guide
The outline, question for question
NASAA's test specifications, effective June 12, 2023, give 60 scored questions: investment advisers 3, adviser representatives 3, broker-dealers 7, agents 8, securities and issuers 5, remedies and administrative provisions 7, communication with customers 12, and ethical practices 15. This bank holds exactly those counts.
State law, not products
Most questions rest on the Uniform Securities Act of 1956 as NASAA publishes it and on NASAA's model rules; a few rest on the FINRA and federal rules the outline names. Product knowledge belongs to other exams and is not asked.
A timed run
Exam mode is the real length: 60 questions in 75 minutes, with 43 right to pass.
When a question asks who must register, test the definition first: a person the Act leaves out of the definition needs no exemption.
Deadlines are asked as the Act words them: promptly, noon of the thirtieth day, December 31.
Questions and answers
Is the Series 63 a FINRA exam?
FINRA administers it, and enrollment and the $147 fee go through FINRA. The exam itself belongs to NASAA, the North American Securities Administrators Association, which publishes the content outline.
Is there a free Series 63 study guide?
Yes. NASAA posts its own Series 63 exam study guide as a PDF on its Exam Study Guides page. It sets out the exam's structure and test specifications. This page adds practice questions and is not NASAA's guide.
How many questions are on the Series 63 exam?
65 multiple-choice questions in 75 minutes. Sixty count toward the score, and five are being pre-tested and are not identified.
What is the passing score for the Series 63?
43 or more of the 60 scored questions, by FINRA's page for the exam. That is a little under 72 percent.
Can I take the Series 63 online?
Generally not. NASAA says it no longer offers the Series 63 through online testing, except for candidates with medical proof that they cannot sit the exam in a testing center.