SERIES 65 EVALUATION TEST 2026 QUESTIONS
AND ANSWERS SURE A+
✔✔Investment Adviser Representative - ✔✔Any individual who represents a state-
registered investment adviser or federal covered investment adviser performing duties
related to the giving of or soliciting for advisory services.
✔✔Issuer - ✔✔the individual or business organization offering or proposing to offer a
security a security for sale to the public
✔✔security - ✔✔
✔✔SRO - ✔✔Self-Regulatory Organization FINRA, MSRB, CBOE,
✔✔solicitor - ✔✔One working on behalf of advisor to solicit business
✔✔No Place of Business in This State Exemption - ✔✔Do business with only other
financial ins (issuers, BDs, Banks, Savings, Trust comapnies, and insurance) as well as
the snowbird exemption
✔✔Form BD - ✔✔Registration form for a broker-dealer
✔✔Net Capital Rule - ✔✔Administrator may require a certain net worth by BD otherwise
a surety bond may be posted.
✔✔Disclosure of Capacity - ✔✔-*confirmation must show whether the B/D acted as
agent or principal no later than settlement date
✔✔agent - ✔✔Any individual that represents a BD in attempting or effecting
transactions
,✔✔Exclusions from Agent - ✔✔Clerical and administrative personnel w/ no sales
compensation, certain securities, exempt from registration
✔✔Consent to Service of Process - ✔✔a. Document that irrevocably appoints the
administrator as a registered person's attorney for the service of legal papers.
✔✔Registration effective date / Withdrawal Effective Date - ✔✔30 days after
completed/filed application
✔✔Books and Records - ✔✔All records must be kept for 3 years as well as current and
accurate; no requirement in excess of SEC
✔✔Not Securities under USA - ✔✔Fixed Insurance policy, Interest in retirement plan,
Collectibles, commodities, condominuims for personal residence, currency
✔✔Four characteristics of a security - ✔✔investment of money, in common enterprise,
with expectation of profit, from the efforts of another person
✔✔Federal Covered Securities - ✔✔- listed on exchanges
- securities that are = or > in seniority than a listed security
- issued by investment company
- offered/sold to qualified purchasers (private placements)
✔✔Notice Filing - Securities - ✔✔(1) Method by which a registered investment company
and certain other federal covered securities file records with state securities
Administrators.
✔✔Registration by Coordination - ✔✔A process that allows A security to be sold in a
state. It is available to an issuer that files for the security's registration under the
Securities Act of 1933 and files duplicates of the registration documents with the state
administrator. The state registration becomes effective at the same time the federal
registration statement becomes effective.
✔✔Registration by Qualification - ✔✔A process that allows a security to be sold in a
state. It is available to an issuer who files for the security's registration with the state
Administrator, meets minimum net worth, disclosure, and other requirements, and files
appropriate registration fees. The state registration becomes effective when the
Administrator so orders.
✔✔Exempt Transactions - ✔✔(1) Isolated nonissuer (secondary) transactions,
(2) nonissuer transactions by pledgees,
(3) transactions with existing security holders
(4) unsolicited brokerage transactions,
(5) underwriter transactions,
(6) bankruptcy/guardian/conservator
, (7) institutional investor,
(8) Limited offerings (private placements),
(9) preorganization certificates
✔✔Exempt securities under USA - state - ✔✔US/Cad Gov municipal Securities,
Foreign Gov Securities
Depository Institutions
Insurance Company
Public Utility
Federal Covered Securities
Nonprofits
Employee benefit plans
Certain money market instruments
✔✔delivery delay - ✔✔Excessive delay of delivery of securities or funds
✔✔Churning - ✔✔excessive buying and selling of securities to generate commissions
✔✔unethical practices - ✔✔Unsuitable recommendations, Failure to describe risks,
blanket recommendations, free lunch seminars, improper hypotheication, unreasonable
commissions, timely prospectus delivery, dishonoring quotes, unclear fees or changes
to, Guaranteeing against lost, not disclosing conflict of interest, filing complaints, lending
or borrowing from a client, selling away, fictitious accounts, sharing in account profits or
losses (agent only)
✔✔Discretion - ✔✔Asset, Action, Amount
✔✔Margin Agreement - ✔✔A legal agreement between a customer and a broker to
open a margin account. Must be received before
✔✔Matched Orders - ✔✔Illegal manipulative practice of offsetting buy and sell orders to
create the impression of activity in a security, causing upward price movement that
benefits the participants.
✔✔wash trade - ✔✔A wash trade occurs when a customer enters a purchase order and
a sale order for the same security at the same time. It is done to create a false
appearance of activity in a security. This is a prohibited practice.
✔✔Front Running - ✔✔Placing broker's personal orders ahead of a customer's large
order to profit from the market effects of the trade
✔✔sell - ✔✔To convey ownership of a security or another asset for money or value.
This includes giving or delivering a security with or as a bonus for a purchase of
securities, a gift of assessable stock, and selling or offering a warrant or right to
purchase or subscribe to another security. Not included in the definition is a bona fide
AND ANSWERS SURE A+
✔✔Investment Adviser Representative - ✔✔Any individual who represents a state-
registered investment adviser or federal covered investment adviser performing duties
related to the giving of or soliciting for advisory services.
✔✔Issuer - ✔✔the individual or business organization offering or proposing to offer a
security a security for sale to the public
✔✔security - ✔✔
✔✔SRO - ✔✔Self-Regulatory Organization FINRA, MSRB, CBOE,
✔✔solicitor - ✔✔One working on behalf of advisor to solicit business
✔✔No Place of Business in This State Exemption - ✔✔Do business with only other
financial ins (issuers, BDs, Banks, Savings, Trust comapnies, and insurance) as well as
the snowbird exemption
✔✔Form BD - ✔✔Registration form for a broker-dealer
✔✔Net Capital Rule - ✔✔Administrator may require a certain net worth by BD otherwise
a surety bond may be posted.
✔✔Disclosure of Capacity - ✔✔-*confirmation must show whether the B/D acted as
agent or principal no later than settlement date
✔✔agent - ✔✔Any individual that represents a BD in attempting or effecting
transactions
,✔✔Exclusions from Agent - ✔✔Clerical and administrative personnel w/ no sales
compensation, certain securities, exempt from registration
✔✔Consent to Service of Process - ✔✔a. Document that irrevocably appoints the
administrator as a registered person's attorney for the service of legal papers.
✔✔Registration effective date / Withdrawal Effective Date - ✔✔30 days after
completed/filed application
✔✔Books and Records - ✔✔All records must be kept for 3 years as well as current and
accurate; no requirement in excess of SEC
✔✔Not Securities under USA - ✔✔Fixed Insurance policy, Interest in retirement plan,
Collectibles, commodities, condominuims for personal residence, currency
✔✔Four characteristics of a security - ✔✔investment of money, in common enterprise,
with expectation of profit, from the efforts of another person
✔✔Federal Covered Securities - ✔✔- listed on exchanges
- securities that are = or > in seniority than a listed security
- issued by investment company
- offered/sold to qualified purchasers (private placements)
✔✔Notice Filing - Securities - ✔✔(1) Method by which a registered investment company
and certain other federal covered securities file records with state securities
Administrators.
✔✔Registration by Coordination - ✔✔A process that allows A security to be sold in a
state. It is available to an issuer that files for the security's registration under the
Securities Act of 1933 and files duplicates of the registration documents with the state
administrator. The state registration becomes effective at the same time the federal
registration statement becomes effective.
✔✔Registration by Qualification - ✔✔A process that allows a security to be sold in a
state. It is available to an issuer who files for the security's registration with the state
Administrator, meets minimum net worth, disclosure, and other requirements, and files
appropriate registration fees. The state registration becomes effective when the
Administrator so orders.
✔✔Exempt Transactions - ✔✔(1) Isolated nonissuer (secondary) transactions,
(2) nonissuer transactions by pledgees,
(3) transactions with existing security holders
(4) unsolicited brokerage transactions,
(5) underwriter transactions,
(6) bankruptcy/guardian/conservator
, (7) institutional investor,
(8) Limited offerings (private placements),
(9) preorganization certificates
✔✔Exempt securities under USA - state - ✔✔US/Cad Gov municipal Securities,
Foreign Gov Securities
Depository Institutions
Insurance Company
Public Utility
Federal Covered Securities
Nonprofits
Employee benefit plans
Certain money market instruments
✔✔delivery delay - ✔✔Excessive delay of delivery of securities or funds
✔✔Churning - ✔✔excessive buying and selling of securities to generate commissions
✔✔unethical practices - ✔✔Unsuitable recommendations, Failure to describe risks,
blanket recommendations, free lunch seminars, improper hypotheication, unreasonable
commissions, timely prospectus delivery, dishonoring quotes, unclear fees or changes
to, Guaranteeing against lost, not disclosing conflict of interest, filing complaints, lending
or borrowing from a client, selling away, fictitious accounts, sharing in account profits or
losses (agent only)
✔✔Discretion - ✔✔Asset, Action, Amount
✔✔Margin Agreement - ✔✔A legal agreement between a customer and a broker to
open a margin account. Must be received before
✔✔Matched Orders - ✔✔Illegal manipulative practice of offsetting buy and sell orders to
create the impression of activity in a security, causing upward price movement that
benefits the participants.
✔✔wash trade - ✔✔A wash trade occurs when a customer enters a purchase order and
a sale order for the same security at the same time. It is done to create a false
appearance of activity in a security. This is a prohibited practice.
✔✔Front Running - ✔✔Placing broker's personal orders ahead of a customer's large
order to profit from the market effects of the trade
✔✔sell - ✔✔To convey ownership of a security or another asset for money or value.
This includes giving or delivering a security with or as a bonus for a purchase of
securities, a gift of assessable stock, and selling or offering a warrant or right to
purchase or subscribe to another security. Not included in the definition is a bona fide
