A quick-reference glossary of high-yield Series 63 terms covering registration, exemptions, securities definitions, and prohibited practices.
Use this glossary for quick recall, not as a substitute for the main reading and review work. Series 63 often tests whether you can classify a person, product, or activity precisely enough to choose the right state-law answer.
Administrator: The state securities regulator responsible for enforcing that state’s securities laws.
Agent: An individual who represents a broker-dealer or issuer in effecting or attempting to effect securities transactions.
Broker-dealer: A person or firm in the business of effecting securities transactions for others or for its own account.
Exempt security: A security that is exempt from registration requirements, although antifraud rules still apply.
Exempt transaction: A transaction that is exempt from registration requirements even if the security itself is not exempt.
Federal covered adviser: An investment adviser primarily regulated at the federal level rather than through full state registration, although state notice filing may still apply.
Fiduciary duty: The obligation to act in the client’s best interest with loyalty and care.
Fraud: A deceptive act, omission, or practice that misleads an investor or client.
Investment adviser (IA): A person or firm that gives securities advice for compensation and is in the business of doing so.
Investment adviser representative (IAR): An individual associated with an investment adviser who gives advice, manages accounts, or solicits advisory business.
Notice filing: A filing made with a state by a federal covered adviser, typically involving documents and fees rather than full state registration.
Private placement: A non-public offering made under an exemption from full public registration requirements.
Prohibited practice: Conduct barred by state law, such as misleading statements, unsuitable recommendations, or misuse of client funds.
Registration: The process by which a person, firm, or offering becomes properly authorized under the applicable securities rules.
Security: A broad legal term that can include stocks, bonds, notes, investment contracts, and many other instruments.
State law: The securities law and related rules adopted by an individual state or territory.
Unethical business practice: Conduct that may violate state rules even when it does not look like a classic fraud question at first glance.