Free FINRA Series-63 Exam Questions

Become FINRA Certified with updated Series-63 exam questions and correct answers

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Total 254 Questions | Updated On: Mar 26, 2025

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Question 1

Under the NASAA Model Rules, which of the following must an investment adviser provide its clients with at least once a year?

A : the total number of agency cross transactions completed for the client during the period

B : the total amount of commissions or other compensation that the investment adviser received or expects to receive in connection with agency cross transactions performed for the client during the period

C : the number of any complaints that each of its investment adviser representatives has received during the period

D : both A and B

Answer: D

Question 2

Sam Shyster had his day in court-and lost. His license to do business as an investment adviser in the state has been revoked. What legitimate options does Sam have available to him now?

A : Sam can move to another state and apply for registration as an investment adviser there.

B : Sam has 45 days in which to file an appeal with the attorney general.

C : Sam can register with the SEC as an investment adviser, which will exempt him from state registration requirements.

D : Sam has 60 days to file an appeal of the decision in a court of law.

Answer: D

Question 3

Which of the following statements would not be in violation of NASAA rules regarding the sale of investment company shares? I. “Investing your money in shares of this money market mutual fund is identical to putting your money in a savings account at a bank, except the money market fund provides a higher return.” II. “Our U.S. government bond fund is invested only in government bonds issued by the U.S. government and is, therefore, a risk-free investment.” III. “You are investing $22,000 in this fund today. The fund has a 5% load at this investment level, but if you sign a letter of intent to invest another $3,000 within the next 13 months, your load will be reduced to 4%. If something comes up and you can’t invest the extra $3,000 within 13 months, you will only need to pay the difference in the two loads.”

A : I only

B : I and II only

C : III only

D : I, II, and III

Answer: C

Question 4

An investment adviser or its representative may

A : only exercise any discretionary power in the purchase or sale of securities for a client’s account after receiving written authority prior to the execution of the transactions.

B : exercise discretionary power in the purchase or sale of securities for a client’s account as long as it receives written discretionary authority over the account within 10 business days of the first discretionary transaction placed, assuming oral authority has already been given.

C : exercise discretionary power in the purchase or sale of securities for a client’s account as long as.

D : exercise discretionary power in the purchase or sale of securities for a client’s account only after.

Answer: B

Question 5

Don is a state-registered agent with GetErDone Broker-Dealers. He has three other friends who are licensed agents-Huey, Dewey, and Louie. Huey is also an agent with GetErDone Broker-Dealers. Dewey is an agent with a different firm in the same city, CanDo Broker-Dealers. Louie works for a Broker-Dealer with an office just across the state line. Don can enter a commission-splitting agreement with

A : Huey only

B : either Huey or Dewey or both

C : Dewey only

D : Either Huey, Dewey, or Louie or any combination of the three

Answer: A

Page: 1 / 51

Total 254 Questions | Updated On: Mar 26, 2025

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