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FINRA Series_63 Exam Overview:

FINRA Series_63 Exam Syllabus Topics:

FINRA Uniform Securities Agent State Law Examination Sample Questions:

1. An investment adviser or its representative may

A) exercise discretionary power in the purchase or sale of securities for a client's account only after
B) exercise discretionary power in the purchase or sale of securities for a client's account as long as
C) 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.
D) 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.

2. Mr. Noah Scruples is a registered representative with CanDo Broker-Dealers. A client calls and wants
Noah to purchase shares of a mutual fund the client has read about. CanDo is not authorized by this
particular fund to effect purchases or sales of the fund shares. Can Noah execute the order anyway?

A) No. This is a prohibited practice known as front running.
B) No. This would be considered money laundering, which is highly illegal.
C) Yes. Since this is an unsolicited trade, Noah can execute the transaction on behalf of his client.
D) No. This is a prohibited practice known as selling away.

3. Ms. Ding is an administrative assistant to the manager of a mutual fund. Most of her day is spent entering
data onto a spreadsheet for her boss and answering phone calls. Some of the calls require her to provide
information about the some of the fund's financial aspects, such as its closing net asset value on the
previous day. What type of registration does Ms. Ding require in order to perform her duties?

A) Ms. Ding will need to apply for registration as both an agent and an investment adviser representative
in this case since she is providing information about a mutual fund.
B) Ms. Ding needs to apply for registration as an agent since she is providing financial information.
C) Ms. Ding does not need to apply for any type of registration. She is merely supplying information and is
not engaged in the purchase or sale of the fund shares.
D) Ms. Ding needs to apply for registration as an investment adviser representative since she is providing
information about a specific mutual fund.

4. You are an investment adviser representative. Your client, Mr. I. M. Pulse, calls you with what he thinks is
exciting news. He just passed a restaurant and saw Microsoft's Bill Gates having lunch with a local
entrepreneur who owns a small firm in the computer software industry that trades on the OTC pink sheets.
He is sure that this means Microsoft is negotiating a purchase of the smaller company and instructs you to
take the cash balance in his account and buy shares of the local company. You should

A) call your supervisor and alert him immediately of Mr. Pulse's attempt to have you place an illegal order
on his behalf in case Mr. Pulse decides to place the order elsewhere.
B) advise Mr. Pulse that he may be jumping the gun, but place the order if he insists.
C) do both A and B.
D) tell Mr. I.M. Pulse that this would be an illegal insider trade and that you are unable to fulfill his request.

5. Moe is a registered investment adviser doing business under the name of MoeMoney Investment
Advisers, LLC. Larry, Curly, and Mary all hold positions with the firm. Larry is on the board of directors;
Mary is a sales representative for the firm; and Curly is an administrative assistant, who performs clerical
duties. Given that Moe is already a registered investment adviser, which of the other three are
automatically registered as investment adviser representatives?

A) Larry and Mary only
B) Larry, Mary and Curly
C) Larry only
D) Mary and Curly only

Solutions: