When it comes to Series 63 preparation, just knowing the laws is not always enough. In today’s post, we discuss how you should study for this exam.
Series 63 Preparation: Build the Foundation
When you study for the Series 63 Exam keep in mind that this is effectively a law exam. What we mean is that at the foundational level you need to know the laws. Of course, there are also rules and regulations to remember, laws related to registration requirements, and exceptions to all of the above.
The exam is certainly an exercise in memory work. However, your memory work is simply the beginning and a basic requirement to get through the exam. Beyond that, you have to be able to apply the rules and regulations, and laws, to different scenarios.
Scenarios
As with many other law exams, some exam questions may directly test your knowledge of the law. Others, however, may test your ability to apply the law.
For example, you will need to know that a Treasury bond is defined as an exempt security under the Uniform Securities Act (USA). That said, an agent working at a broker dealer is not exempt in transacting a Treasury bond with an individual investor (Hint: most transactions between agents and individual investors are not exempt since the state wants to “protect” the individual investor).
Going even further, the question may mention that the investor is a government employee that works for the federal government. Tricks like these come up every now and then. The employee’s employer is irrelevant. Since this person is still an individual investor, the transaction is not exempt – and even though the security itself is exempt.
Overall, this exam is quite doable for almost everyone. Many of our students find it easier than the SIE Exam. It does not have technical components, such as Options and Bonds (which you will find on the SIE Exam and Series 7). That said if you have had issues with law exams in the past, then feel free to reach out if you need any help. Good luck!