🧪 Series 63 Quiz – State Laws and Blue Sky Rules

Test your knowledge of one of the most heavily tested areas on the Series 63 exam: state securities laws and Blue Sky rules. These practice questions are designed to help you reinforce regulatory concepts, understand exemptions, and avoid the common traps that show up on test day.

📋 Quick Quiz – 10 Questions

1️⃣

Which of the following is considered a security under the Uniform Securities Act (USA)?
A. Fixed annuity
B. Variable life insurance
C. Whole life insurance
D. Retirement plan

✅ Correct Answer: B

2️⃣

An agent may lawfully sell a security in a state if:
A. The agent is registered and the security is exempt
B. The agent is exempt but the security is registered
C. The firm is registered but the agent is not
D. The client is out-of-state and initiates the order

✅ Correct Answer: A

3️⃣

Under the USA, a security is exempt from registration if it is issued by:
A. A blue-chip technology company
B. A nonprofit organization
C. A foreign corporation
D. A small private partnership

✅ Correct Answer: B

4️⃣

Which of the following transactions is considered exempt under the USA?
A. A public offering of municipal bonds
B. A nonissuer transaction in a security listed on the NYSE
C. A primary offering by a startup company
D. An intrastate private placement

✅ Correct Answer: B

5️⃣

What does “Blue Sky Laws” refer to?
A. SEC rules governing federal taxation
B. State laws regulating securities and protecting investors
C. Laws that apply only to commodities
D. Guidelines issued by FINRA

✅ Correct Answer: B

6️⃣

Which statement is true about registration by coordination?
A. It is used only when registering securities at the state level
B. It is used for exempt securities
C. It allows state registration to become effective when federal registration is approved
D. It replaces federal registration

✅ Correct Answer: C

7️⃣

Which of the following is NOT considered an exempt security under the USA?
A. U.S. Treasury bond
B. Bank-issued certificate of deposit
C. Private placement
D. Municipal bond issued by another state

✅ Correct Answer: C

8️⃣

When must an agent renew their registration with a state?
A. Every two years on the anniversary of registration
B. Once the federal license expires
C. Annually, by December 31st
D. Upon request from the Administrator

✅ Correct Answer: C

9️⃣

Who has the authority to revoke a security’s exemption in a particular state?
A. The SEC
B. FINRA
C. The state Administrator
D. The issuing firm

✅ Correct Answer: C

🔟

Under the USA, who is responsible for enforcing Blue Sky laws in each state?
A. FINRA
B. State legislators
C. The Administrator
D. The federal courts

✅ Correct Answer: C

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