Series 63 Exam Cheat Sheet – Free PDF Download
- April 1, 2025
- Posted by: 'FINRA Exam Mastery'
- Category: Finance
🧾 Series 63 Exam Cheat Sheet – Free PDF Download
📘 Quick-Reference Guide to Key State Law Concepts and Exam Essentials
The Series 63 exam, formally known as the Uniform Securities Agent State Law Examination, focuses on state securities regulations, primarily under the Uniform Securities Act (USA). This cheat sheet gives you a clear, one-page review of the most tested concepts — and yes, it’s available in PDF format upon request.
✅ Section I – Key Definitions
| Term | Definition |
|---|---|
| Agent | Individual who represents a broker-dealer in securities transactions |
| Broker-Dealer | Firm that buys/sells securities for itself or others |
| Issuer | Entity that offers securities to the public |
| Non-Issuer Transaction | Sale not directly from the issuer (e.g., secondary market sale) |
| Security | Includes stocks, bonds, options, variable contracts, etc. |
✅ Section II – Exemptions
| Exempt Securities | Exempt Transactions |
|---|---|
| U.S. Government and Agency | Unsolicited orders |
| Municipal Bonds (in-state only) | Isolated non-issuer transactions |
| Commercial Paper (≤ 270 days) | Transactions with financial institutions |
| Insurance company securities | Private placements with ≤10 non-institutional investors |
| Bank-issued securities | Transactions by fiduciaries (trustees, executors, etc.) |
✅ Section III – Registration Rules
| Person | Where Registration Is Required |
|---|---|
| Broker-Dealer | State where they have an office OR solicit business |
| Agent | State where they sell or solicit |
| Issuer | No registration unless they act as a broker-dealer |
| De Minimis Rule | No registration if ≤5 clients in a 12-month period (non-institutional) |
✅ Section IV – Disciplinary Actions & Penalties
- Admin may deny/suspend/revoke a license with notice and hearing
- Statute of limitations for civil suits:
⏱️ 3 years from violation OR 2 years from discovery - Criminal penalties:
💥 Up to $5,000 fine and/or 3 years in prison
✅ Section V – Fraud and Misrepresentation
🚫 Prohibited:
- Omitting material facts
- Misrepresenting qualifications or products
- Promising guaranteed returns
- Failing to disclose conflicts of interest
- Churning (excessive trading)
✅ Required:
- Full disclosure of all relevant facts
- Suitability for client needs
- Clear communication — no misleading statements
✅ Section VI – Important Filing Forms
| Form | Purpose |
|---|---|
| Form U4 | Registration of individuals with a BD |
| Form U5 | Termination of registration |
| Consent to Service of Process | Allows administrator to receive legal notices on behalf of registrant |
✅ Test Strategy Tips
🧠 Time per question: ~75 seconds
📌 Key topics to know well:
- Agent registration rules
- Exempt securities vs exempt transactions
- Admin powers (cease & desist, summary orders)
- Fraud vs unethical practices
- Penalties and civil liability
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Pass the Series 63. State laws, simplified.