Review when a broker-dealer must register, how Form BD fits the process, and how Series 63 tests firm-level registration logic.
Series 63 starts with the broker-dealer itself. NASAA expects candidates to know when firm-level broker-dealer registration is required, how state and federal registration intersect, and why Form BD matters as the firm’s core filing document.
The safest reasoning pattern is simple: identify the activity, decide whether the firm is acting as a broker-dealer, and then ask what registration and filing obligations follow. Questions here often punish candidates who jump straight to the individual agent instead of classifying the firm first.
A firm begins effecting securities transactions for others in a state. What should be analyzed first?
A. Whether the individual salesperson prefers commission or salary
B. Whether the firm is acting as a broker-dealer and therefore has registration obligations
C. Whether the customers are institutional only
D. Whether the office is open five days a week
Answer: B. Series 63 firm-registration questions begin by deciding whether the entity is functioning as a broker-dealer. That classification determines whether registration and Form BD obligations apply.