Series 6 and 63 Combined Practice Questions

Series 6 and 63 Combined Practice Questions

Preparing for both the Series 6 and Series 63 exams? These two FINRA/NASAA licenses cover different—but complementary—areas of securities regulation. The Series 6 focuses on product knowledge and suitability, while the Series 63 tests your grasp of state laws and ethical practices.

Below are 10 combined practice questions designed to test your understanding of both exams. Use these to reinforce key concepts, identify gaps, and improve exam readiness.

📘 Practice Questions

1. [Series 6]
Which of the following products may a Series 6 representative sell?
A. Individual stocks
B. Variable annuities
C. Options contracts
D. Municipal bonds

✅ Correct Answer: B

Series 6 license holders may sell packaged products like mutual funds and variable annuities—not individual securities or options.

2. [Series 63]
An agent recommends a mutual fund without disclosing a trailing commission. This is:
A. Acceptable as long as the fund is suitable
B. A violation of the Uniform Securities Act
C. Allowed if the client signs a waiver
D. Not a violation if the fund is well-known

✅ Correct Answer: B

Failing to disclose compensation is a violation under the USA.

3. [Series 6]
Which class of mutual fund shares is best for a long-term investor seeking the lowest overall cost?
A. Class A
B. Class B
C. Class C
D. No-load

✅ Correct Answer: A

Class A shares offer lower ongoing expenses and are most cost-effective over time.

4. [Series 63]
Under the Uniform Securities Act, an agent’s registration becomes effective:
A. Immediately upon application
B. Within 60 days of filing
C. At noon, 30 days after filing
D. On January 1st following the filing

✅ Correct Answer: C

Registration becomes effective 30 days after filing, assuming no issues.

5. [Series 6]
What is the maximum 12b-1 fee allowed for a fund to still be considered a “no-load” fund?
A. 1.00%
B. 0.75%
C. 0.50%
D. 0.25%

✅ Correct Answer: D

No-load funds can charge a maximum 0.25% 12b-1 fee.

6. [Series 63]
Which of the following is not considered a security under the Uniform Securities Act?
A. Variable annuity
B. Real estate investment trust
C. Fixed annuity
D. Equipment leasing certificate

✅ Correct Answer: C

Fixed annuities are not securities.

7. [Series 6]
A customer reinvests mutual fund dividends. What is the tax consequence?
A. No tax until the fund is sold
B. Dividends are tax-deferred
C. Dividends are taxable in the year received
D. Taxable only if the fund has gains

✅ Correct Answer: C

Dividends are taxable when reinvested or paid, regardless of fund performance.

8. [Series 63]
Which of the following could lead to disciplinary action against an agent?
A. Making recommendations based on client objectives
B. Sharing commissions with a registered agent at the same firm
C. Telling a client a stock is “guaranteed to go up”
D. Offering a client a prospectus before purchase

✅ Correct Answer: C

Guarantees of investment performance are strictly prohibited.

9. [Series 6]
Which of the following would most likely require delivery of a mutual fund prospectus?
A. A discussion about a mutual fund
B. Mailing fund marketing materials
C. Accepting a fund purchase order
D. A request for fund performance history

✅ Correct Answer: C

The prospectus must be delivered at or before the sale.

10. [Series 63]
An Administrator issues a cease and desist order. Which of the following is true?
A. It must be preceded by a hearing
B. It can be issued without prior notice
C. It can be issued only by a court
D. It requires SEC approval

✅ Correct Answer: B

Cease and desist orders may be issued without prior notice or a hearing.

🚀 Ready to Master Both Exams?

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