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 08, 2026

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Question 1

Which of the following trades is illegal?

A : a short sale

B : a margin transaction

C : a market-not-held order

D : the sale of a mutual fund if the purchaser hasn’t received a prospectus

Answer: D

Question 2

Once you have passed the Series 63 examination, which entity must then approve your application to sell securities?

A : FINRA

B : NASAA

C : SEC

D : the state administrator

Answer: D

Question 3

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 4

While on vacation in Colorado, Mr. Moneybags became interested in the stock of a company called SafeAway, which designs and installs customized high-tech security systems in the multimillion dollar mansions located in Colorado’s pricier ski resort areas, such as Vail and Aspen. Upon returning to his home in Boston, he calls his broker-dealer with an order to purchase 10,000 shares of the stock, which he learned trades in the over-the-counter market. Fast Eddie, a registered agent with his broker-dealer, discovers that SafeAway’s stock is registered only in the states of Colorado and Wyoming. Neither Fast Eddie nor his broker-dealer are registered to do business in either of those states. Under these circumstances,

A : Fast Eddie cannot effect Mr. Moneybags purchase of SafeAway stock since neither he nor his broker are registered to do business in Colorado or Wyoming, and SafeAway stock is not registered for sale in the state of Massachusetts.

B : Fast Eddie can execute the trade for Mr. Moneybags since this would be considered an exempt transaction because it is a private placement.

C : Fast Eddie should contact a broker-dealer that is registered in either Colorado or Wyoming and negotiate a finder’s fee for referring Mr. Moneybags to them.

D : Fast Eddie can execute the trade for Mr. Moneybags since this would be considered an exempt transaction because it is an unsolicited transaction.

Answer: D

Question 5

Once you have passed the Series 63 examination, which entity must then approve your application to sell securities?

A : FINRA

B : NASAA

C : SEC

D : the state administrator

Answer: D

Page: 1 / 51

Total 254 Questions | Updated On: Mar 08, 2026

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