Free NASAA Series 63 (Uniform Securities Agent State Law Examination) Communication with Customers and Prospects Practice Questions
Communication with customers and prospects on the NASAA Series 63 exam covers disclosure requirements, advertising rules, social media guidance, performance reporting, and fair dealing obligations.
Sample Questions
Question 1
Easy
A registered agent may make all of the following statements to a retail prospect EXCEPT:
Solution
C is correct. It is an unlawful representation to suggest that registration or a license signifies the Administrator's approval, endorsement, or judgment about the merit of any security or person. The Administrator's review confirms only that filing and qualification requirements were met, never that a recommendation is sound. The other statements are factually accurate disclosures an agent is permitted to make.
Question 2
Medium
All of the following statements about a customer's listed-options account are true EXCEPT:
Solution
D is correct. Trading may begin once the account is approved and the Options Disclosure Document has been delivered; the customer is not required to return the signed options agreement before the first trade. Instead, the signed agreement must be received within 15 days after the account is approved for options. The other statements correctly state the sequence of options-account obligations.
Question 3
Hard
A retail customer is opening both a margin account and a listed-options account at a broker-dealer. All of the following are accurate EXCEPT:
Solution
A is correct. Once a registered options principal approves an options account and the Options Disclosure Document has been delivered, the customer may begin options trading immediately; the signed options agreement is due within 15 days after approval, not before the first order. Delivery of the ODD at or before approval and a margin credit agreement disclosing how debit-balance interest is computed are both accurate. Requiring the signed options agreement before any opening order misstates the timing.