📝 Series 63 Exam Questions Based on NASAA Outline

The Series 63 Exam, developed by NASAA (North American Securities Administrators Association), tests your understanding of state securities laws, ethical business practices, and the rules governing agents and broker-dealers. To succeed, it’s essential to focus your study on the official NASAA content outline, which defines what the exam will cover.

This question set is built directly from that outline — covering the two core sections that make up the full exam.

📚 NASAA Series 63 Exam Structure

The Series 63 consists of 60 scored questions, divided into two primary content areas:

Section 1: State Securities Acts and Related Rules & Regulations (75%)

Section 2: Ethical Practices and Fiduciary Obligations (25%)

Our practice questions target both sections in the same proportion to give you realistic preparation that mirrors the actual exam format.

🧩 Sample Questions – Section 1: State Securities Acts

Question 1:
A broker-dealer has no place of business in a state but transacts only with insurance companies and investment advisers in that state. Under the Uniform Securities Act, the firm:

🅰️ Must register as a broker-dealer in that state
🅱️ Is exempt from registration ✅
🅲️ May only operate under a temporary registration
🅳️ Must file Form ADV

Correct Answer: 🅱️
Broker-dealers with no place of business in a state and who transact only with institutional investors are exempt from registration.

Question 2:
Which of the following securities is not exempt under the Uniform Securities Act?

🅰️ U.S. Treasury Bonds
🅱️ Municipal bonds issued by another state
🅲️ Commercial paper maturing in 180 days
🅳️ Limited partnership interests in a real estate development ✅

Correct Answer: 🅳️
Limited partnership interests are typically non-exempt, especially when marketed to retail investors.

📊 Sample Questions – Section 2: Ethical Practices

Question 3:
An agent recommends a security based solely on a guaranteed commission bonus. This behavior is:

🅰️ Acceptable if disclosed
🅱️ Suitable for income-seeking clients
🅲️ Unethical and unsuitable ✅
🅳️ Permitted under NASAA guidelines

Correct Answer: 🅲️
Recommendations must be based on client suitability, not on personal gain or incentives.

Question 4:
An agent receives a client order and delays execution to trade ahead for personal gain. This is an example of:

🅰️ Selling away
🅱️ Front-running ✅
🅲️ Free-riding
🅳️ Backdating

Correct Answer: 🅱️
Front-running is a prohibited practice and a direct violation of ethical standards.

🧠 What These Questions Reinforce

• Rules of registration and exemptions
• Powers of the state Administrator
• Differences between exempt securities and transactions
• Recognition of unethical sales practices
• Application of fiduciary principles to client interactions

📥 Practice with the Full NASAA-Aligned Question Bank

Master Series 63 with targeted questions based on the NASAA outline. Build speed, accuracy, and confidence by practicing the way the test is designed.

👉 Access the full question pack now at FINRA Exam Mastery