Series 63 Mini Quiz – State Regulation

Series 63 Mini Quiz – State Regulation
Published on finra-exam-mastery.com

📝 Test Your Knowledge on State Securities Regulation
This mini quiz focuses on one of the most important—and most tested—areas of the Series 63 exam: state regulation under the Uniform Securities Act (USA). These questions reflect the real complexity of the exam and are designed to sharpen your understanding of registration, exemptions, and administrative authority.

📘 Question 1
Which of the following is NOT considered a “security” under the Uniform Securities Act?

A. Limited partnership interest
B. Preorganization certificate
C. Fixed annuity
D. Debenture

✅ Correct Answer: C – Fixed annuities are insurance products and are not considered securities under the USA.

📘 Question 2
An investment adviser has five clients in a state where it is not registered. Under what condition is the adviser exempt from registration in that state?

A. The firm has under $25 million in assets under management
B. The firm only advises accredited investors
C. The firm has no place of business in the state and fewer than six clients there
D. The firm is registered with the SEC

✅ Correct Answer: C – Advisers with no place of business and fewer than six non-institutional clients are exempt under the de minimis exemption.

📘 Question 3
Which of the following transactions is EXEMPT from state registration requirements?

A. A private placement to ten retail clients
B. A transaction involving a security listed on the NYSE
C. A sale of mutual fund shares by a registered agent
D. A transaction involving a security backed by Canadian government debt

✅ Correct Answer: B – Federally covered securities, such as those listed on national exchanges like the NYSE, are exempt from state registration.

📘 Question 4
What power does an Administrator have during an investigation?

A. Only within their own state’s borders
B. Only if a complaint is filed by an investor
C. Across state lines and without prior notice
D. Only with a court order

✅ Correct Answer: C – Administrators can act across state lines and without notice when investigating or subpoenaing for suspected violations.

📘 Question 5
Which of the following persons is required to register as an agent under the USA?

A. An individual who represents an issuer in exempt transactions
B. A clerical employee of a broker-dealer
C. A person who sells securities for a commission on behalf of a broker-dealer
D. A trustee in a bankruptcy proceeding selling securities

✅ Correct Answer: C – Anyone who represents a broker-dealer in effecting or attempting to effect transactions must register as an agent.

🎯 Your Next Step
Review these explanations, identify where you’re still unsure, and keep practicing. Mini quizzes like this are essential to strengthen your memory and increase your accuracy on exam day.

🔗 Continue your prep now at finra-exam-mastery.com