Series 63 – Uniform Securities Agent State Law Exam Cheat Sheet 2026

The 30 highest-yield Series 63 – Uniform Securities Agent State Law Exam facts, distilled from real exam questions. Print it, save it as a PDF, or study it here — free, no sign-up.

1. Under the USA, which of the following persons qualifies as an 'agent'? → An individual who represents a broker-dealer in effecting securities transactions
2. Under the USA, what information must be included in every sales communication sent by a registered agent? → The name of the broker-dealer or investment adviser the agent represents
3. Which of the following securities issued by a US government agency is exempt from registration under the USA? → Securities issued by the Federal Home Loan Bank
4. Which of the following is required for a broker-dealer to legally conduct business in a state under the USA? → State registration with the Administrator
5. Under the USA, which of the following is NOT considered an investment adviser? → A bank providing advice solely in its banking capacity
6. Under the USA, who may bring a civil action to enforce the provisions of the Act in addition to private investors? → The Administrator through the state Attorney General
7. Under the USA, an agent who guarantees a client that they will not lose money on an investment is in violation of what? → The anti-fraud provisions and prohibited practices rules
8. Before revoking a registration under the USA, the Administrator must provide what to the registrant? → Prior notice and an opportunity for a hearing
9. Under the USA, the Administrator may issue a 'stop order' to do which of the following? → Suspend or revoke the effectiveness of a securities registration
10. When a registered broker-dealer sells securities between existing customers without solicitation, this is known as which type of transaction? → An unsolicited brokerage transaction
11. Under the USA, which of the following may the Administrator NOT do without a prior hearing? → Permanently revoke a registration
12. Under the USA, what is the purpose of requiring broker-dealers to maintain a surety bond? → To protect clients in the event the broker-dealer is unable to satisfy claims against it
13. Which of the following securities is exempt from registration under the USA? → Securities issued by a foreign government with which the US maintains diplomatic relations
14. Under the USA, which of the following is NOT considered a fraudulent act? → Charging a disclosed, reasonable commission for executing a trade
15. Under the USA, may parties contractually waive the civil liability provisions of the Act? → No, any such waiver is void and unenforceable
16. Under the USA, commercial paper qualifies as an exempt security if it has a maturity of no more than how many months? → 9 months
17. Under the USA, investment advisers who have custody of client funds or securities are subject to which additional requirement? → They are subject to higher net worth requirements and more frequent audits
18. Under the USA, the Administrator may deny registration to an applicant for which of the following reasons? → The applicant has been convicted of a securities-related felony within the past 10 years
19. Under the USA, investment advisers are generally required to maintain books and records for a minimum of how many years? → Five years
20. What is the statute of limitations for bringing a civil action under the USA? → Two years from discovery or three years from the transaction, whichever comes first
21. Under the USA, misleading omissions of material facts in connection with securities transactions are considered what? → Fraudulent acts subject to civil and criminal penalties
22. Under the USA, what is the effect of successfully claiming an exemption on the anti-fraud provisions? → The anti-fraud provisions apply to all transactions, even those that are otherwise exempt
23. What is the maximum criminal penalty for a willful violation of the USA? → $5,000 and/or 3 years imprisonment
24. Under the Uniform Securities Act, the state administrator may require an impoundment or escrow of offering proceeds as a condition of registration under: → Any method of securities registration
25. What is 'churning' in the context of securities regulation? → Excessive trading in a client's account primarily to generate commissions
26. Under the USA, which type of fee arrangement for investment advisers is generally prohibited without meeting specific conditions? → Performance-based fees that give the adviser a share of capital gains
27. Which of the following is a prerequisite for using registration by notification under the Uniform Securities Act? → The issuer must have been a continuous SEC reporting company for at least 36 months
28. Under the Uniform Securities Act, how long does a securities registration statement remain effective unless renewed or withdrawn? → 1 year
29. Under the USA, the term 'issuer' refers to which of the following? → Any person who has issued or proposes to issue any security
30. Which of the following is true about the exemption for transactions with financial institutions under the USA? → It applies to transactions with any institutional investor defined under the USA