Below you will find some free Series 63 Exam practice questions. Although we have found that more and more candidates are taking the Series 66, the Series 63 satisfies the requirement for state licensing for Series 7 and Series 6 licensed individuals. Anyway, the practice questions below will give you an idea of the types of questions you will see when taking the real exam. At the end of the practice test, you’ll find an answer key. Good luck…
10 Series 63 Practice Questions
1) Which of the following is prohibited according to the Uniform Securities Act?
A. Having discretionary authority over a customer’s account
B. Charging high commissions for transactions
C. Soliciting orders for unregistered non-exempt securities
D. Both B and C are prohibited
2) Which of the following represents market manipulation?
A. The excessive trading of a client’s account
B. The trading back and forth of a security to give the appearance of high trading volume
C. Commingling a firm’s account with a customer account
D. All of the above
3) Which of the following is not an “investment adviser”?
A. A financial planner
B. An economics teacher who gets paid for teaching students how to analyze a portfolio of securities
C. A broker who charges a fee for offering investment advice
D. A person who sells research reports through the mail
4) Out of the following, which is a non-exempt security?
A. Treasury bonds
B. An adjustment bond
C. A revenue bond issued by the state of Indiana
D. A G.O. bond issued by the state of New York
5) A new company wishes to sell securities interstate. What is the most likely registration process?
When taking the Series 63 Exam, be aware of key words in the questions like EXCEPT and NOT to help keep you from making careless mistakes.
6) All of the following are prohibited business practices EXCEPT:
A. Matching orders
B. Charging high commissions without justification
C. Purchasing a security for a customer without approval or a power of attorney
D. Buying a security on one exchange for immediate resale on another exchange at a profit
7) Which of the following registration methods require the submission of a balance sheet to the State Administrator?
D. None of the above
8) Which of the following would be considered a broker-dealer?
I. An agent who executes trades that are on the records of the employing broker-dealer
II. A person who has an office in the state and only executes trades for institutions
III. A pension fund manager
IV. An agent who executes trades that are not on the records of the employing broker-dealer
A. IV only
B. II and IV
C. I, II, and III
D. I, II, and IV
9) According to the Uniform Securities Act, registration of a debt security is valid:
A. For six months after the effective date
B. For one year after the effective date
C. For two years after the effective date
D. Until December 31st of the calendar year of registration
10) All of the following may have authority over a securities transaction EXCEPT:
A. The administrator supervising the agent’s state
B. The administrator supervising the customer’s state
C. The administrator for the state in which the customer is on vacation
D. None of the above; all of the above answers have authority
Answer Key: 1) C 2) B 3) B 4) B 5) A 6) D 7) A 8) B 9) B 10) D
Above is just a sampling of Series 63 exam practice questions. When purchasing our Series 63 Course Textbook, you will not only get the correct answers, but also detailed explanations. All Empire Stockbroker Training Institute books were created by Steven M. Rice and Rueben Martinez
Series 63 Course Textbook
Series 63 Course Textbook with chapter exams, final exams, and a glossary of Series 63 terms.
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