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Finra Series-63 Exam Questions - Navigate Your Path to Success

The Finra Uniform Securities State Law Examination (Series-63) exam is a good choice for Compliance Officers Investment Consultants and if the candidate manages to pass Finra Uniform Securities State Law Examination exam, he/she will earn Finra Uniform Securities State Law Certification. Below are some essential facts for Finra Series-63 exam candidates:

  • In actual Finra Uniform Securities State Law Examination (Series-63) exam, a candidate can expect 60 Questions and the officially allowed time is expected to be around 75 Minutes.
  • TrendyCerts offers 251 Questions that are based on actual Finra Series-63 syllabus.
  • Our Finra Series-63 Exam Practice Questions were last updated on: Mar 13, 2025

Sample Questions for Finra Series-63 Exam Preparation

Question 1

Which of the following describes a prohibited practice in the sale of shares of investment companies?

I . Sandy Slacker hands her client the fund's prospectus and tells him that the prospectus will provide him all that he needs to know about loads and fees associated with the fund.

II . Elliot Eager tells a client who has an investment objective that includes current income that a certain bond fund has a current yield of 8% and provides the client with a prospectus so that the client can peruse the average annual returns that the fund has generated in past years when the client has the time.

III . After explaining all the fees and loads involved in two different bond funds as well as the difference between current yield and total return, Patty shows the client the data on the average annual returns that the two bond funds provided. She explains to the client that the municipal bond fund has a lower yield than the similar-risk corporate bond fund because the interest income the client will receive from the municipal bond fund will be free from federal taxation, while the interest income on the corporate bond fund is fully taxable.

Correct : C

Only the scenarios described in Selections I and II represent prohibited practices. The NASAA rules state that it is not enough to hand a client a prospectus, but that the agent must fully explain all sales charges and also to explain the difference between current yield and total return to the client and present that client with the fund's most recent average annual returns over the past year, 5-year, and 10-year periods. Sandy and Elliot have not done this in the scenarios described. In Selection III, Patty has done so and has also provided the client with accurate and useful information regarding why a municipal bond offers a lower yield than a corporate bond fund.


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Question 2

Which of the following does not describe a prohibited practice for investment advisers?

I . The adviser sells its non-institutional clients securities that it has issued.

II . The adviser makes a discretionary trade for a client after receiving verbal authorization only and does not receive written authorization from the client within 10 business days of doing so.

III . The investment adviser requires an advisory fee of $300 to be paid in advance at the beginning of each quarter.

Correct : D

Selections II and III do not describe prohibited practices. If an adviser makes a discretionary trade for a client after having received verbal authorization to do so and does not receive written authorization from the client within 10 business days of doing so, the adviser is limited to making recommendations to the client and executing unsolicited trades only, but he has not engaged in a prohibited practice, and this is the scenario described in Selection II . There is no provision that prohibits an adviser from requiring an advisory fee to be paid in advance as long as it is reasonable, as described in Selection III . An adviser is not permitted to sell its non-institutional clients securities it has issued itself because of the significant conflict of interest involved. The exception is if the client is an institution that is in the business of lending money, but Selection I specifically indicates ''non-institutional clients.''


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Finra Series-63