Introduction
I remember sitting exactly where you are—staring at the first page of a study guide for the Series 63 exam. Perhaps like you, I found the exam to be a far more nerve-wracking experience than any exam I ever took during college, because passing this test would mean either a huge step toward a career in an amazing industry or a major roadblock in my career path of choice.
How did I do? I passed with a 100%.*
* This was when you still received a score when you passed your exam. Today if you pass you no longer receive a score.
Does that mean it was easy? Not in the slightest.
Rather, and this is the good news for you, it means that the exam is predictable. Even though it crams a lot of complex material into just 65 questions, the material can be mastered by anyone who is willing to commit the time. That’s because the NASAA, the North American Securities Administrators Association, which designs the exam, has outlined everything you need to know, as well as given samples of the question formats. The NASAA tries to make the exam more difficult by writing questions that can seem tricky and nuanced. But if you’ve learned the material, you will have an excellent chance of success. Most of you who will be taking this exam will be working for broker-dealers, so most of the rules and regulations on the exam apply to broker-dealers and their representatives. But the NASAA also wants you to know about firms that give advice on securities as well. This means you will be tested on rules and regulations related to investment advisers and their representatives.
The text is organized into the following five chapters based on the content of the exam, plus a sixth chapter that we added to familiarize you with federal securities acts, about which the exam assumes you will be knowledgeable.
• Chapter One: Regulation of Investment Advisers and Investment Adviser Representatives—6 questions (10%)
• Chapter Two: Regulation of Broker-Dealers an