🧪 Series 63 Mock Exam with Scoring

This 10-question Series 63 mock exam simulates the format and content of the actual Uniform Securities Agent State Law Examination. Answer each question, then check your score and interpretation below.

✅ Question 1

Under the Uniform Securities Act, which of the following is a broker-dealer?
A. A partner in a law firm who gives investment advice
B. A firm executing securities trades for its own and client accounts
C. An individual with a Series 63 working for a bank
D. An internet publisher of financial newsletters

Answer: B
Explanation: A broker-dealer is a firm or person in the business of effecting securities transactions for its own account or others.

✅ Question 2

Which of the following is NOT a security?
A. Variable life insurance policy
B. Treasury note
C. Fixed annuity
D. Stock warrant

Answer: C
Explanation: Fixed annuities are insurance products and not considered securities.

✅ Question 3

A consent to service of process allows state Administrators to:
A. File criminal charges
B. Serve subpoenas directly to clients
C. Accept legal documents on behalf of the registrant
D. Deny registration without a hearing

Answer: C
Explanation: The consent gives the Administrator legal authority to receive legal documents for registrants.

✅ Question 4

Under the USA, which of the following must register as an agent?
A. A secretary at a broker-dealer who handles clerical tasks
B. A person selling fixed insurance contracts
C. A person effecting securities transactions for a broker-dealer
D. A person representing an issuer in exempt transactions only

Answer: C
Explanation: Anyone effecting securities transactions for a broker-dealer must register as an agent.

✅ Question 5

An Administrator can deny registration for all of the following EXCEPT:
A. Insolvency
B. Failure to pay registration fees
C. Lack of experience
D. Prior felony conviction in a non-securities-related matter

Answer: C
Explanation: Lack of experience alone isn’t grounds for denial unless it affects competence.

✅ Question 6

Which of the following is true about an investment adviser’s fiduciary duty?
A. It is waived by disclosing conflicts of interest
B. It includes placing clients’ interests above the firm’s
C. It applies only to federally covered advisers
D. It applies only during the first year of advisory services

Answer: B
Explanation: Fiduciary duty means always acting in the client’s best interest.

✅ Question 7

A newspaper ad published in State A but directed to residents of State B is considered an offer in:
A. State A only
B. State B only
C. Both A and B
D. Neither

Answer: B
Explanation: Offers are considered made in the state where they are received if they’re directed to that state.

✅ Question 8

Which of the following must be disclosed to clients under the antifraud provisions?
A. Pending criminal charges not related to securities
B. A spouse’s securities holdings
C. Material conflicts of interest
D. Educational background

Answer: C
Explanation: All material conflicts of interest must be disclosed under antifraud rules.

✅ Question 9

Which registration exemption applies to isolated nonissuer transactions?
A. Exempt security
B. Exempt transaction
C. Exempt broker-dealer
D. Exempt registration method

Answer: B
Explanation: Isolated nonissuer transactions are exempt transactions under the USA.

✅ Question 10

A cease and desist order from the Administrator may be issued:
A. Only after a hearing
B. Without prior notice
C. Only with a court order
D. By a federal judge

Answer: B
Explanation: The Administrator may issue cease and desist orders without prior notice or hearing.

🧾 Scoring Guide

• 9–10 correct: Outstanding – You’re exam-ready
• 7–8 correct: Strong – Review weak areas
• 5–6 correct: Moderate – Focused review needed
• Below 5: High risk – Revisit all major topics

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