SERIES 63 EXAM UPDATED QUESTIONS
AND CORRECT ANSWERS.
Agent - ANS An individual who represents a broker/dealer or an issuer when selling or trying
to sell securities to the investing public. This individual is considered an _____ whether he or
she actually receives or simply solicits orders. Also known as "registered representatives."
Two types of agents - ANS An individual who represents a broker dealer in effecting or
attempting to effect securities transactions (an entrepreneur selling stock in his own company
to raise capital
An employee is not an agent - ANS selling to non-resident customers(30 day limit)
selling to new residents (60 day limit)
Not an agent working as an issuers - ANS Individuals who represent issuers of certain exempt
securities ( US gov
Individuals who represent issuers in exempt transactions(CFO selling bonds to institutional
investors
Individuals representing issuers selling only to qualified purchasers or selling private
placements (under 33 act )
If you see a question about the issuer of a certificate of deposit, voting trust certificate or
collateral trust certificate, look for the terms - ANS depositor or manager in the answer
choices
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
,If you are asked who is the issuer of a certificate of interest or participation in oil, gas or mining
titles or leases - ANS the answer is that there is no issuer
RR must file an application to register in the state in which a client is now a resident within -
ANS 10 business days of the later of: a transaction with the client in the new state or the
discovery by the rr of the clients change in residence
Agent application - ANS the applicants qualifications and business history
any injunctions or administrative orders involving security
any convictions for misdemeanors involving securities
any felony convictions
the applicants financial condition and history
issuer - ANS According to the Uniform Securities Act, any person who issues or proposes to
issue any security. When a corporation or municipality raises additional capital through an
offering of securities, that corporation or municipality is the issuer of those securities. An issuer
transaction also is called a primary transaction.
historical performance - ANS may be shown to investors as long as proper disclosure is
provided indicating that it DOES NOT predict future results.
New resident exception to apply - ANS The rr must not be ineligible to register in the new
state, The rr must be registered with a registered securities association and at least one state
The RRs broker dealer must be registered in the new state
If an agent leaves one broker dealer and becomes employed by another broker dealer -
ANS all three parties have to notify the administrator
In an agent terminates his employement with a broker dealer without going to a new dealer -
ANS both have to notify administrator
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
, A minor is not considered a - ANS person
broker/dealer - ANS any person engaged in the business of effecting transactions in
securities for the account of others or for his own account.
Who is not a broker dealer - ANS a bank, savings institution, or trust company, insurance
companies
an issuer,
an agent
a person that has no place of business in the state and deals only with broker dealers,
institutional investors or the issue of the security involved in the transaction
Broker dealer info - ANS a person engaged in the business of effecting securities
transactions:
for the account of others (a broker)
or
Its own account (a dealer
Broker-dealer follow sec rules record retention for books and records - ANS 3 years retention
2 in an easily accessible location
Broker dealer exceptions to record retention documents to be retained for six years -
ANS principal designation records
records of original entry
trade blotters
Broker dealer docs to be reatained for life - ANS stock certificates
parnership papers
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
AND CORRECT ANSWERS.
Agent - ANS An individual who represents a broker/dealer or an issuer when selling or trying
to sell securities to the investing public. This individual is considered an _____ whether he or
she actually receives or simply solicits orders. Also known as "registered representatives."
Two types of agents - ANS An individual who represents a broker dealer in effecting or
attempting to effect securities transactions (an entrepreneur selling stock in his own company
to raise capital
An employee is not an agent - ANS selling to non-resident customers(30 day limit)
selling to new residents (60 day limit)
Not an agent working as an issuers - ANS Individuals who represent issuers of certain exempt
securities ( US gov
Individuals who represent issuers in exempt transactions(CFO selling bonds to institutional
investors
Individuals representing issuers selling only to qualified purchasers or selling private
placements (under 33 act )
If you see a question about the issuer of a certificate of deposit, voting trust certificate or
collateral trust certificate, look for the terms - ANS depositor or manager in the answer
choices
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
,If you are asked who is the issuer of a certificate of interest or participation in oil, gas or mining
titles or leases - ANS the answer is that there is no issuer
RR must file an application to register in the state in which a client is now a resident within -
ANS 10 business days of the later of: a transaction with the client in the new state or the
discovery by the rr of the clients change in residence
Agent application - ANS the applicants qualifications and business history
any injunctions or administrative orders involving security
any convictions for misdemeanors involving securities
any felony convictions
the applicants financial condition and history
issuer - ANS According to the Uniform Securities Act, any person who issues or proposes to
issue any security. When a corporation or municipality raises additional capital through an
offering of securities, that corporation or municipality is the issuer of those securities. An issuer
transaction also is called a primary transaction.
historical performance - ANS may be shown to investors as long as proper disclosure is
provided indicating that it DOES NOT predict future results.
New resident exception to apply - ANS The rr must not be ineligible to register in the new
state, The rr must be registered with a registered securities association and at least one state
The RRs broker dealer must be registered in the new state
If an agent leaves one broker dealer and becomes employed by another broker dealer -
ANS all three parties have to notify the administrator
In an agent terminates his employement with a broker dealer without going to a new dealer -
ANS both have to notify administrator
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
, A minor is not considered a - ANS person
broker/dealer - ANS any person engaged in the business of effecting transactions in
securities for the account of others or for his own account.
Who is not a broker dealer - ANS a bank, savings institution, or trust company, insurance
companies
an issuer,
an agent
a person that has no place of business in the state and deals only with broker dealers,
institutional investors or the issue of the security involved in the transaction
Broker dealer info - ANS a person engaged in the business of effecting securities
transactions:
for the account of others (a broker)
or
Its own account (a dealer
Broker-dealer follow sec rules record retention for books and records - ANS 3 years retention
2 in an easily accessible location
Broker dealer exceptions to record retention documents to be retained for six years -
ANS principal designation records
records of original entry
trade blotters
Broker dealer docs to be reatained for life - ANS stock certificates
parnership papers
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
