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FINRA Series_63 Exam Overview:

FINRA Series_63 Exam Syllabus Topics:

FINRA Uniform Securities Agent State Law Examination Sample Questions:

Question 1

Which of the following statements about agents is (are) false?

A. An agent must demonstrate a specific minimum level of financial stability for his registration application
to be accepted.
B. All of the above are false statements.
C. When an agent has a change of address, both he and his broker-dealer affiliate must inform the
Administrator.
D. If an agent files for bankruptcy, the Administrator may elect to terminate that agent's registration if the
Administrator believes it is "in the public interest" to do so.

Question 2

Bootstraps, Inc. is a family-owned business that has experienced enormous growth in the last couple of
years. The business needs more cash to support this growth and has decided to issue some promissory
notes, each with a face value of $5,000, for sale to the general public. The firm plans to hire three
individuals to help them sell these notes. These individuals will earn a commission based on the notes
they sell. Given these facts, which of the following is true?

A. The notes must be registered with the state, but the individuals hired to sell them are not required to be
registered.
B. Either the firm must register the notes with the state, or the individuals that are hired to sell the notes
must be registered as agents with the state, but not both.
C. The notes must be registered with the state, and the three individuals hired to sell the notes must be
registered as agents with the state.
D. Neither the notes nor the individuals selling the notes need to be registered with the state.

Question 3

Which of the following does not need to be included in an investment advisory contract?

A. the term of the contract
B. a statement that the contract cannot be assigned to another party without the client's consent
C. the advisory fees and the formula used to compute them
D. the total amount of money that the investment adviser currently has under management

Question 4

Painting the tape refers to

A. the prohibited practice of excessively trading on a client's account that is used by some broker-dealers
and/or their agents to generate more commissions for themselves.
B. the practice of buying large amounts of a security to drive its price up artificially.
C. the illegal activity of a group of investors who buy and sell a security among themselves to create an
artificially high volume of trading in hopes of luring investors to buy the security.
D. the unethical practice of investment advisers who issue "buy" recommendations for stocks that they
own themselves without disclosing the fact.

Question 5

Under which of the following scenarios can a client legitimately sue a purported professional in the
securities industry and expect an award for damages?
I. The securities were sold by an agent whose registration was not yet effective with the state, but who
had already applied for registration.
II. The security was a variable annuity, and the sales representative neglected to reveal the details of the
surrender clause to the client.
III. The security was the stock of a company, the stock had recently been registered with the state for sale,
had been granted registration, and the selling agent had told his client that the security had been
state-approved for sale.

A. II and III only
B. I and III only
C. I, II, and III
D. I only

Solutions: