Series 63 Test - NASD Series 63

Series 63

The Series 63 is the Uniformed State Law license. The Series 63 will normally go with a Series 7 or Series 65 License. American Investment Training offers test course materials to pass this NASD Exam.

The Series 63 is required by most states to comply with state registrations throughout the country.

The Series 63 is comprised of 65 multiple choice test questions. There is a 75 minute time limit, and a 70% grade is needed to pass the exam. The test can be taken at designated NASD testing centers. AIT can provide further information and assist with registration.

Topics for study include: Uniform state laws, SEC and state regulations, and registration procedures.

The Series 63 test covers topics including:

State Registration Laws and Procedure

Penalties and Suspension

Lawful Practices

Definition of terms

Discretionary Rules

Prerequisite License: None
Questions on Exam : 65
Time to Complete : 75 Minutes
Format : Multiple Choice
Passing Grade: 70%
Availability: Test is given daily (Mon-Sat)
Where: Prometric Centers via NASD
Home Study Time:Generally 1-2 weeks (1-2hrs daily)

Sample Test Questions

1. If an individual’s registration has been revoked by the Administrator within the past 10 years due to a felony conviction resulting from a securities law violation, this individual is prohibited from being registered as a(n):

I Agent for another broker-dealer
II Principal of another broker-dealer
III Representative for an investment adviser
IV Principal of an investment adviser

a. I only
b. I and III only
c. II and IV only
d. I, II, III, IV

2. For an agent to share in the gains and losses of a customer account, which statements are true?

I The customer must agree to the arrangement in writing
II The broker-dealer must agree to the arrangement in writing
III The Administrator must agree to the arrangement in writing
IV Sharing is permitted only in direct proportion to capital contributed to the account

a. I and IV only
b. II and III only
c. I, II, and IV
d. I, II, III, IV

3. The Administrator is permitted to initiate a disciplinary proceeding against an agent for all of the following reasons EXCEPT if her or she:

a. finds that the agent has engaged in dishonest practices 6 months after that individual’s registration has been terminated
b. finds that the agent has engaged in dishonest practices 6 months after that individual’s registration has expired
c. finds that the agent has failed to disclose a prior felony conviction
d. knew of facts at the time that the agent was granted the license, but did not deny the license based upon those facts

4. Which of the following are defined as either a “sale” or an offer to sell” common stock of an issuer?

I Any offer to sell the common stock for value
II Any solicitation of an offer to buy the common stock for value
III The sale of a bond with detachable warrants to buy the common stock of that issuer
IV The gift of the common stock to an employee of the issuer

a. I only
b. II and III only
c. I, II, III
d. I, II, III, IV

5. All of the following statements are true regarding an agent’s license EXCEPT:

a. Once the license if filed, it is effective immediately
b. The license is valid for a pre-determined time period, that is usually 1 year
c. If the broker-dealer’s license is revoked, the agent’s license is revoked
d. If the agent withdraws his or her registration, the withdrawal becomes effective in 30 days

Series 63 Study Material

The Series 63 study course offered by AIT includes: a Series 63 Book and CD Test Program. Chapter and final exam test questions are provided to give exposure to accurate exam questions, that will give the student the best opportunity to pass on the first attempt. The study material is up to date for current exam content.

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