🧠 Series 63 Test Your Knowledge – Quiz A

Test your readiness for the Series 63 exam with this short quiz based on key topics covered by NASAA’s Uniform Securities Act. These questions reflect the structure, difficulty, and content you can expect on the actual exam.

✅ Question 1

Which of the following is NOT considered a security under the Uniform Securities Act (USA)?
A. Stock in a technology company
B. Investment contract in a real estate limited partnership
C. Collectible vintage wine bottles sold at auction
D. Debenture issued by a corporation

Answer: C
Explanation: Tangible assets like collectibles, wine, or art are not considered securities under the USA.

✅ Question 2

An agent executes a trade for a client without receiving prior authorization. The client later approves the trade. This is:
A. Permitted since the client approved it later
B. A violation, because prior written consent was required
C. Acceptable if the trade resulted in a profit
D. Permitted only if the client is an institutional investor

Answer: B
Explanation: Agents must obtain prior written discretionary authority to execute trades without explicit instruction. Post-approval is not valid.

✅ Question 3

Which of the following statements is TRUE regarding registration of investment adviser representatives (IARs)?
A. IARs must register federally and with each state
B. IARs must register only with the SEC
C. IARs must register with the state unless they work for a federal covered adviser
D. IARs are exempt from registration if they have the Series 65

Answer: C
Explanation: IARs register with the state unless they are employed by a federally covered adviser, in which case state registration rules vary.

✅ Question 4

A customer files a written complaint about an agent. What must the broker-dealer do?
A. Forward the complaint to FINRA
B. Respond only if the customer is correct
C. File a SAR report
D. Maintain a record of the complaint and notify a supervisor

Answer: D
Explanation: Written complaints must be documented and reported to the firm’s supervisory personnel per compliance rules.

✅ Question 5

Under the USA, an offer is considered to be made in a state when:
A. The offer is sent from or received in the state
B. The sale takes place in the state only
C. The client reads about the offer in a newspaper
D. The issuer is headquartered in the state

Answer: A
Explanation: An offer is made in a state if it originates in or is directed to someone in that state.

📊 Scoring

• 5/5: Excellent – You’re ready to advance
• 4/5: Strong – Review your weak spot
• 3/5 or below: Revisit key topics in the Uniform Securities Act

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