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Finra Uniform Securities State Law Examination Series-63 Exam

Attempt the Uniform Securities State Law practice test and solve real exam-like Series-63 questions to prepare efficiently and increase your chances of success. Our Finra Series-63 practice questions match the actual Uniform Securities State Law Examination exam format, helping you enhance confidence and improve performance. With our Series-63 practice exam software, you can analyze your performance, identify weak areas, and work on them effectively to boost your final Uniform Securities State Law exam score.

Vendor:	Finra
Exam Name:	Uniform Securities State Law Examination
Registration Code:	Series-63
Related Certification:	Finra Uniform Securities State Law Certification
Exam Audience:	Compliance Officers, Investment Consultants,

Total Questions

251

Last Updated

08-12-2025

Exam Duration

75 MINUTES

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Question: 1

A hypothecation agreement refers to

Aan agreement wherein a client gives his broker-dealer discretion to purchase securities that the broker-dealer deems appropriate in whatever quantity the broker-dealer feels appropriate and at a time and price the broker-dealer believes is a good deal.

Ban agreement that a client must sign prior to executing any short sales with the broker-dealer.

Can agreement signed by a client who is executing a margin transaction that allows the broker to hold the margined securities in street name as collateral for the loan.

Da document signed by a client indicating that he or she understands that some of the charts and examples presented in a broker-dealer's advertising literature are based on hypothetical trades.

Answer: C

Explanation:

A hypothecation agreement refers to an agreement signed by a client who is executing a margin transaction that allows the broker to hold the margined securities in street name as collateral for the loan.

Question: 2

Which of the following statements regarding an investment adviser representative who has an office in the state is true?

AIf the investment adviser is registered with the SEC, then neither the investment adviser nor any of its affiliated investment adviser representative needs to be registered with the state.

BRegardless of whether the investment adviser is registered with the SEC or is registered with the state, all investment adviser representatives of the firm must be registered with the state if they have offices in the state.

CIf the investment adviser that the investment adviser representative is affiliated with is itself registered with the state, then the investment adviser representative does not need to apply for a separate registration, regardless of whether the investment adviser representative has an office in the state.

DIf an investment adviser representative is registered with the SEC, he or she need not obtain state registration, regardless of whether the investment adviser representative has an office in the state.

Answer: B

Explanation:

Regardless of whether the investment adviser is register with the SEC or is itself registered with the state, all of its investment adviser representatives (IARs) are required to register with the state if they operate a place of business in the state.

Question: 3

Which of the following entities must sign a ''consent to service of process,'' thereby allowing the Administrator to receive legal documents that are meant to be served to the entity in place of that entity?

I . agents

II . investment advisers

III . investment adviser representatives

IV . broker-dealers

AI and IV only

BII and III only

CII and IV only

DI, II, III, and IV

Answer: D

Explanation:

Agents, investment advisers, investment adviser representatives, and broker-dealers must all sign a consent to service of process, allowing the Administrator to receive legal documents in their stead. The consent to service of process must accompany the application for registration with the state or the documentation provided with a notice filing when permitted.

Question: 4

The Administrator of a state will deny the registration of a security if

I . the mandated filing fee has not been paid.

II . the compensation of the underwriters is excessive.

III . the registration statement is incomplete.

IV . the issuer is registering the security through the registration by coordination process and has not complied with all the stipulated requirements.

AI, II, III, or IV

BI or III only

CIII or IV only

DI, III or IV only

Answer: A

Explanation:

The Administrator of a state will deny the registration of a security under any of the situations described in Selections I, II, III, and IV-if the mandated filing fee has not been paid; if the compensation of the underwriters is excessive; if the registration statement is incomplete; or if the issuer is attempting to use registration by coordination and has not complied with all the stipulated requirements of that process.

Question: 5

In which of the following scenarios would the Administrator of a state not have jurisdiction?

I . A monthly newspaper published by a resident of the state who is not a registered investment adviser has a column in which the publisher makes specific investment recommendations for clients who write in for advice. About 80% of the circulation of the publication is to out-of-state residents.

II . An internet blog posted by an out-of-state resident makes investment recommendations.

III . An out-of-state firm solicits buyers for its promissory notes within the state.

AI only

BII only

CI and II only

DI, II, and III

Answer: C

Explanation:

The administrator of a state would not have jurisdiction in the scenarios described in Selections I and II . In Selection I, more than 2/3 of the circulation of the newspaper is outside the state, which excludes it from the jurisdiction of the Administrator. Selection II describes an electronic communication that originates from outside the state, which excludes it. Selection III constitutes an offer to sell securities within the state, and this will always fall under the jurisdiction of the Administrator of the state.

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