What is Series 63? A Comprehensive Guide to the State Exam

Definition & Meaning

The Series 63, also known as the Uniform Securities Agent State Law Examination, is a licensing test for individuals who want to work as securities agents in various states. Administered by the North American Securities Administrators Association (NASAA), this exam assesses a candidate's knowledge of state laws and regulations regarding securities. Passing the Series 63 is a requirement in nearly all states for those seeking to register as securities agents, ensuring they understand the legal framework governing securities transactions.

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Real-world examples

Here are a couple of examples of abatement:

Here are a couple of examples illustrating the importance of the Series 63:

  • A stockbroker in California must pass the Series 63 to legally offer investment advice and sell securities to clients in the state.
  • A financial advisor moving from New York to Texas needs to pass the Series 63 to maintain their registration and continue working with clients in Texas (hypothetical example).

State-by-state differences

Examples of state differences (not exhaustive):

State Requirement
California Requires passing the Series 63 before registration as a securities agent.
Texas Also mandates the Series 63 for securities registration.
New York Requires the Series 63, alongside other exams for full registration.

This is not a complete list. State laws vary, and users should consult local rules for specific guidance.

Comparison with related terms

Term Definition
Series 6 A license for selling mutual funds and variable annuities, requiring a different examination.
Series 7 A broader license allowing the sale of a wider range of securities, requiring a more extensive exam.

What to do if this term applies to you

If you are looking to become a securities agent, follow these steps:

  • Review your state's specific requirements for registration.
  • Prepare for the Series 63 exam using study materials or courses.
  • Consider using US Legal Forms to access templates for any necessary applications or documents.
  • If you encounter complexities, consult a legal professional for guidance.

Quick facts

Attribute Details
Administered by North American Securities Administrators Association (NASAA)
Typical fee Varies by state, generally around $100
Exam format Multiple-choice questions
Passing score Typically 70% or higher

Key takeaways

Frequently asked questions

The Series 63 exam ensures that securities agents understand state laws and regulations governing securities transactions.