STC SERIES 66 CHAPTER 1 TEST EXAM
WITH CORRECT QUESTIONS AND
ANSWERS 2025
Which of the following choices would be considered a person under the USA?
A customer
A broker-dealer
An estate
An issuer - CORRECT-ANSWERSI, II, III, and IV
Under the USA, a person is defined as a legal entity, which would include individuals (natural
persons) and business entities such as corporations, broker-dealers, partnerships, and investment
advisers.
If a broker-dealer is publishing both bid and ask prices for securities in the secondary market, it's
acting as a: - CORRECT-ANSWERSMarket maker
Market makers are firms that act as dealers in offering to buy and sell securities in the secondary
market at their own risk. (18679)
Under the Uniform Securities Act, which individual is considered to be an agent? - CORRECT-
ANSWERSA secretary who accepts customers' securities orders
, An agent is defined as a person who represents either a broker-dealer or an issuer in effecting
securities transactions. The definition excludes principals of broker-dealers, clerical employees
who do not accept customer orders, and silent partners.
An individual represents an issuer in the sale of the issuer's securities to its employees, but does
not earn commissions on the transactions. The individual is: - CORRECT-ANSWERSNot considered to
be an agent of the issuer
An agent is an individual who represents a broker-dealer or an issuer in effecting securities
transactions. However, an individual who represents an issuer in a transaction with existing
employees and does not receive commissions is NOT considered to be an agent. In this question, the
individual does not fall under the definition of either a broker-dealer or an issuer.
Which TWO of the following meet the definition of a broker-dealer under the Uniform Securities Act?
An agent of a broker-dealer who effects securities transactions for the firm
A person that effects securities transactions for the accounts of others
A person that effects securities transactions for its own account
A representative of an IA who provides securities related advice to customers - CORRECT-
ANSWERSII and III
Under the Uniform Securities Act, a broker-dealer is defined as a person that is in the business of
effecting securities transactions either for the accounts of others or for its own account. For that
WITH CORRECT QUESTIONS AND
ANSWERS 2025
Which of the following choices would be considered a person under the USA?
A customer
A broker-dealer
An estate
An issuer - CORRECT-ANSWERSI, II, III, and IV
Under the USA, a person is defined as a legal entity, which would include individuals (natural
persons) and business entities such as corporations, broker-dealers, partnerships, and investment
advisers.
If a broker-dealer is publishing both bid and ask prices for securities in the secondary market, it's
acting as a: - CORRECT-ANSWERSMarket maker
Market makers are firms that act as dealers in offering to buy and sell securities in the secondary
market at their own risk. (18679)
Under the Uniform Securities Act, which individual is considered to be an agent? - CORRECT-
ANSWERSA secretary who accepts customers' securities orders
, An agent is defined as a person who represents either a broker-dealer or an issuer in effecting
securities transactions. The definition excludes principals of broker-dealers, clerical employees
who do not accept customer orders, and silent partners.
An individual represents an issuer in the sale of the issuer's securities to its employees, but does
not earn commissions on the transactions. The individual is: - CORRECT-ANSWERSNot considered to
be an agent of the issuer
An agent is an individual who represents a broker-dealer or an issuer in effecting securities
transactions. However, an individual who represents an issuer in a transaction with existing
employees and does not receive commissions is NOT considered to be an agent. In this question, the
individual does not fall under the definition of either a broker-dealer or an issuer.
Which TWO of the following meet the definition of a broker-dealer under the Uniform Securities Act?
An agent of a broker-dealer who effects securities transactions for the firm
A person that effects securities transactions for the accounts of others
A person that effects securities transactions for its own account
A representative of an IA who provides securities related advice to customers - CORRECT-
ANSWERSII and III
Under the Uniform Securities Act, a broker-dealer is defined as a person that is in the business of
effecting securities transactions either for the accounts of others or for its own account. For that
