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FINRA Series_63 Practice Q&A's

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FINRA Series_63 Exam Syllabus Topics:

SectionWeightObjectives
Administrative Provisions and Remedies15%- Powers of state securities administrators
- Civil and criminal liabilities
- Investigations, subpoenas, and orders
- Judicial review and appeals
Regulations of Investment Advisers5%- Definition under Uniform Securities Act
- Recordkeeping and reporting rules
- Registration and exemptions
Regulations of Securities and Issuers10%- Exempt securities and exempt transactions
- Registration methods: coordination, qualification, filing
- Disclosure and anti-fraud requirements
- Definition of securities
Regulations of Broker-Dealers12%- Definition and legal status
- Exclusions and exemptions from registration
- Registration and post-registration requirements
- Supervision and compliance obligations
Regulations of Investment Adviser Representatives5%- Registration and post-registration duties
- Definition and activities requiring registration
- Exclusions and exemptions
Regulations of Agents of Broker-Dealers13%- Definition and scope of activities
- Termination and notice requirements
- Exemptions from registration
- Registration procedures and Form U4
Ethical Practices and Fiduciary Obligations40%- Advertising and communication rules
- Prohibited business practices
- Anti-fraud provisions and misrepresentation
- Customer suitability and disclosure
- Conflicts of interest and compensation
- Handling of customer funds and securities

FINRA Uniform Securities Agent State Law Examination Sample Questions:

Question #1

Which of the following is not a security, as defined by the Uniform Securities Act?
I. an option contract
II. a futures contract on gold
III. a 401K plan
IV. a variable annuity

  • A. Only Selection III is not a security.
  • B. Only Selections II and III are not securities.
  • C. None of the selections listed are securities.
  • D. Selections II, III and IV are not securities.
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

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Question #2

A broker-dealer will be found guilty of churning an account if the account has a turnover ratio of

  • A. eight.
  • B. four.
  • C. five.
  • D. There is no specified turnover ratio assigned to the prohibited practice of churning.
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Correct Answer: D  🗳️

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Question #3

Don is a state-registered agent with GetErDone Broker-Dealers. He has three other friends who are
licensed agents-Huey, Dewey, and Louie. Huey is also an agent with GetErDone Broker-Dealers. Dewey
is an agent with a different firm in the same city, CanDo Broker-Dealers. Louie works for a Broker-Dealer
with an office just across the state line. Don can enter a commission-splitting agreement with

  • A. Huey only.
  • B. Either Huey, Dewey, or Louie or any combination of the three
  • C. either Huey or Dewey or both
  • D. Dewey only.
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

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Question #4

Blue Sky Laws are designed to:

  • A. protect agents, broker-dealers, and investment advisers and their representatives from spurious
    allegations of fraudulent activity.
  • B. favor investment in companies that engage in environmentally friendly practices.
  • C. protect investors from fraud in their securities market transactions.
  • D. enhance the tourism industry within a state.
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

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Question #5

Broker-dealer Small & Associates has received a complaint about one of its agents, Mr. Ari Gaunt. Small
& Associates is required to

  • A. provide the client with a written response to the complaint.
  • B. immediately forward the complaint to the Administrator of any state in which Mr. Gaunt is a registered
    agent.
  • C. call the client who complained and inform him of the disciplinary action that will be taken against Mr.
    Gaunt.
  • D. keep the complaint in Mr. Gaunt's employee file as long as Mr. Gaunt remains employed with the firm.
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

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