STC Series 66 Questions and Answers
A+ Graded (2025)
Jurisdiction: .Where .is .the .offer .made .for .U.S. .Mail .or .Telephone? .- .CORRECT
.ANSWER-In .two .states .at .most.
The .state .from .which .it .originated .and .the .state .to .which .it .is .directed.
(For .mail, .not .the .state .to .which .it .may .be .forwarded).
Jurisdiction: .Where .is .the .offer .made .for .Television .or .Radio? .- .CORRECT
.ANSWER-One .state .only. .
The .state .in .which .the .camera .or .microphone .is .located)
Jurisdiction: .Where .is .the .offer .made .for .Newspaper .or .Magazine? .- .CORRECT
.ANSWER-One .state .or .no .state.
The .state .in .which .the .newspaper .or .magazine .is .published, .unless .more .than
.two-thirds .of .the .circulation .is .outside .the .state.
Exempt .Issuers .- .CORRECT .ANSWER--US .Government .and .Agencies
-Municipalities
-Non-profit, .religious, .educational .and .charitable .organizations.
-Banks, .Savings .& .Loans, .and .Trust .companies.
-Railroads.
-Small .business .investment .companies.
-Commercial .Paper.
Exempt .Transactions .- .CORRECT .ANSWER-Reg .D .Rule .506 .Private .Placements
.(if):
-Only .Sophisticated .ivestors
-No .more .than .35 .Non-Accredited .Investors
-Buyer .receives .Offering .Memorandum.
-Resale .of .security .is .restricted.
Rule .147 .Interstate .Offerings:
-100% .purchasers .in .state.
-80% .of .company's .assets .are .in .state.
-80% .of .the .company's .business .must .be .carried .out .in .the .state.
-80% .of .operations .revenue .is .generated .in .the .state.
,Small-Issue .Exemption- .Reg .A
-Less .than .$5 .million .raised .during .12 .month .period.
.*Offering .Statement .filed.
What .is .another .word .for .tax .rate? .- .CORRECT .ANSWER-Marginal .Rate .(after .the
.last .dollar .that .you .earn .each .year .is .taxed .at .your .marginal .rate).
Open-End .(Mutual .Fund) .- .CORRECT .ANSWER-Continuously .issue .new .shares
-Common .shares .only
-Sold .by .prospectus.
Sold .at .NAV .+ .sales .charge .(if .any)
Sponsor .stands .ready .to .redeem .shares .at .the .next .calculated .NAV .(forward
.pricing)
Shares .remain .in .the .primary .market.
Cannot .be .sold .short.
Closed-End .fund .- .CORRECT .ANSWER-Usually .do .a .one-time .issuance .of
.common .shares.
-May .issue .preferred .stock .or .bonds.
Shares .may .trade .at .a .discount .or .premium .to .NAV .(based .on .supply/demand)
.with .a .commission .or .markup .added.
Sponsor .does .not .stand .ready .to .redeem .shares.
Shares .trade .in .secondary .market.
May .be .sold .short.
Trust .- .CORRECT .ANSWER-A .legal .arrangement .in .which .an .individual .(creator)
.gives .fiduciary .control .of .property .to .a .person .or .institution .(trustee) .for .the
.benefit .of .beneficiaries.
- .Creator .= .Grantor, .Donor, .Trustor, .Settlor, .or .Maker
Investment .Company .Act .of .1940 .- .CORRECT .ANSWER-Created .to .reduce
.abuses .in .the .sales .of .investment .company .securities.
Assures .investors .receive .adequate .and .truthful .information.
Three .types .of .investment .companies:
-Face .Amount .Certificate .Companies.
-Unit .Investment .Trusts .(UITs)
-Management .Companies .(two .types)
.*Open-End .(mutual .funds)
.*Closed-End
, The .Investment .Company .Act .of .1940 .Identified .3 .types .of .investment
.companies. .What .are .they? .- .CORRECT .ANSWER-Face .amount .certificates, .unit
.investment .trusts, .and .management .companies .(open- .and .closed-end).
What .are .the .Rules .and .Regulations .for .the .Investment .Company .Act .of .1940? .-
.CORRECT .ANSWER-Companies .with .more .than .100 .shareholders .must .register
.with .the .SEC.
Company .must .have .a .minimum .net .worth .of .$100,000 .before .offering .shares
.publicly.
To .change .fund .objectives, .a .majority .vote .of .shares .is .required.
Certain .communication .related .to .investment .company .securities .may .be
.distributed .prior .to .prospectus .delivery, .provided .the .full .prospectus .is .offered
.(Omitting .Prospectus .Rule).
What .is .a .common .use .for .a .bypass .trust? .- .CORRECT .ANSWER-To .pass .assets
.from .the .2nd .deceased .parent .to .his .children.
What .is .not .accountable .to .the .SEC .according .to .the .Act .of .1934? .- .CORRECT
.ANSWER-National .Banks, .as .they .are .not .regulated .by .the .SEC.
State .(USA) .Exemptions .from .IA .Registration .- .CORRECT .ANSWER-Adviser .has
.no .place .of .business .in .the .state .AND
Institutional .Exemption: .Its .only .clients .are .specific .institutional .investors, .OR
De .Minimus .Exemption: .No .more .than .5 .individual .clients .in .a .12-month .period
.who .are .residents .of .the .state.
Federal .(IA .Act .of .1940) .Exemptions .from .IA .Registration .- .CORRECT .ANSWER-
Intrastate .Advisers: .All .clients .are .residents .of .the .state .where .the .adviser's
.office .is .located .and .it .does .not .provide .advice .on .exchange-listed .securities.
Advisers .to .Insurance .Companies: .All .clients .are .insurance .companies.
Private .Fund .Advisers: .Provide .advice .to .private .funds .(e.g., .hedge .funds) .that
.have .less .than .$150 .million .in . AUM .in .the . U.S.
Venture .Capital .Advisers: .Solely .provide .advice .to .one .or .more .venture .capital
.funds.
Foreign .Private .Advisers: .Have .no .place .of .business .in .the .U.S., .have .fewer .than
.15 .U.S. .clients .in .its .private .funds, .and .have .less .than .$25 .million .in . AUM
.attributable .to .the .U.S. .clients.
Federal .Covered .Advisers .(FCA): .What .has .changed .for .Assets? .- .CORRECT
.ANSWER-Rules .prior .to .2012: .Advisers .managing .over .$30 .million .in .assets.
Now .under .Dodd-Frank: .Advisers .managing .over .$100 .million .in .assets.
A+ Graded (2025)
Jurisdiction: .Where .is .the .offer .made .for .U.S. .Mail .or .Telephone? .- .CORRECT
.ANSWER-In .two .states .at .most.
The .state .from .which .it .originated .and .the .state .to .which .it .is .directed.
(For .mail, .not .the .state .to .which .it .may .be .forwarded).
Jurisdiction: .Where .is .the .offer .made .for .Television .or .Radio? .- .CORRECT
.ANSWER-One .state .only. .
The .state .in .which .the .camera .or .microphone .is .located)
Jurisdiction: .Where .is .the .offer .made .for .Newspaper .or .Magazine? .- .CORRECT
.ANSWER-One .state .or .no .state.
The .state .in .which .the .newspaper .or .magazine .is .published, .unless .more .than
.two-thirds .of .the .circulation .is .outside .the .state.
Exempt .Issuers .- .CORRECT .ANSWER--US .Government .and .Agencies
-Municipalities
-Non-profit, .religious, .educational .and .charitable .organizations.
-Banks, .Savings .& .Loans, .and .Trust .companies.
-Railroads.
-Small .business .investment .companies.
-Commercial .Paper.
Exempt .Transactions .- .CORRECT .ANSWER-Reg .D .Rule .506 .Private .Placements
.(if):
-Only .Sophisticated .ivestors
-No .more .than .35 .Non-Accredited .Investors
-Buyer .receives .Offering .Memorandum.
-Resale .of .security .is .restricted.
Rule .147 .Interstate .Offerings:
-100% .purchasers .in .state.
-80% .of .company's .assets .are .in .state.
-80% .of .the .company's .business .must .be .carried .out .in .the .state.
-80% .of .operations .revenue .is .generated .in .the .state.
,Small-Issue .Exemption- .Reg .A
-Less .than .$5 .million .raised .during .12 .month .period.
.*Offering .Statement .filed.
What .is .another .word .for .tax .rate? .- .CORRECT .ANSWER-Marginal .Rate .(after .the
.last .dollar .that .you .earn .each .year .is .taxed .at .your .marginal .rate).
Open-End .(Mutual .Fund) .- .CORRECT .ANSWER-Continuously .issue .new .shares
-Common .shares .only
-Sold .by .prospectus.
Sold .at .NAV .+ .sales .charge .(if .any)
Sponsor .stands .ready .to .redeem .shares .at .the .next .calculated .NAV .(forward
.pricing)
Shares .remain .in .the .primary .market.
Cannot .be .sold .short.
Closed-End .fund .- .CORRECT .ANSWER-Usually .do .a .one-time .issuance .of
.common .shares.
-May .issue .preferred .stock .or .bonds.
Shares .may .trade .at .a .discount .or .premium .to .NAV .(based .on .supply/demand)
.with .a .commission .or .markup .added.
Sponsor .does .not .stand .ready .to .redeem .shares.
Shares .trade .in .secondary .market.
May .be .sold .short.
Trust .- .CORRECT .ANSWER-A .legal .arrangement .in .which .an .individual .(creator)
.gives .fiduciary .control .of .property .to .a .person .or .institution .(trustee) .for .the
.benefit .of .beneficiaries.
- .Creator .= .Grantor, .Donor, .Trustor, .Settlor, .or .Maker
Investment .Company .Act .of .1940 .- .CORRECT .ANSWER-Created .to .reduce
.abuses .in .the .sales .of .investment .company .securities.
Assures .investors .receive .adequate .and .truthful .information.
Three .types .of .investment .companies:
-Face .Amount .Certificate .Companies.
-Unit .Investment .Trusts .(UITs)
-Management .Companies .(two .types)
.*Open-End .(mutual .funds)
.*Closed-End
, The .Investment .Company .Act .of .1940 .Identified .3 .types .of .investment
.companies. .What .are .they? .- .CORRECT .ANSWER-Face .amount .certificates, .unit
.investment .trusts, .and .management .companies .(open- .and .closed-end).
What .are .the .Rules .and .Regulations .for .the .Investment .Company .Act .of .1940? .-
.CORRECT .ANSWER-Companies .with .more .than .100 .shareholders .must .register
.with .the .SEC.
Company .must .have .a .minimum .net .worth .of .$100,000 .before .offering .shares
.publicly.
To .change .fund .objectives, .a .majority .vote .of .shares .is .required.
Certain .communication .related .to .investment .company .securities .may .be
.distributed .prior .to .prospectus .delivery, .provided .the .full .prospectus .is .offered
.(Omitting .Prospectus .Rule).
What .is .a .common .use .for .a .bypass .trust? .- .CORRECT .ANSWER-To .pass .assets
.from .the .2nd .deceased .parent .to .his .children.
What .is .not .accountable .to .the .SEC .according .to .the .Act .of .1934? .- .CORRECT
.ANSWER-National .Banks, .as .they .are .not .regulated .by .the .SEC.
State .(USA) .Exemptions .from .IA .Registration .- .CORRECT .ANSWER-Adviser .has
.no .place .of .business .in .the .state .AND
Institutional .Exemption: .Its .only .clients .are .specific .institutional .investors, .OR
De .Minimus .Exemption: .No .more .than .5 .individual .clients .in .a .12-month .period
.who .are .residents .of .the .state.
Federal .(IA .Act .of .1940) .Exemptions .from .IA .Registration .- .CORRECT .ANSWER-
Intrastate .Advisers: .All .clients .are .residents .of .the .state .where .the .adviser's
.office .is .located .and .it .does .not .provide .advice .on .exchange-listed .securities.
Advisers .to .Insurance .Companies: .All .clients .are .insurance .companies.
Private .Fund .Advisers: .Provide .advice .to .private .funds .(e.g., .hedge .funds) .that
.have .less .than .$150 .million .in . AUM .in .the . U.S.
Venture .Capital .Advisers: .Solely .provide .advice .to .one .or .more .venture .capital
.funds.
Foreign .Private .Advisers: .Have .no .place .of .business .in .the .U.S., .have .fewer .than
.15 .U.S. .clients .in .its .private .funds, .and .have .less .than .$25 .million .in . AUM
.attributable .to .the .U.S. .clients.
Federal .Covered .Advisers .(FCA): .What .has .changed .for .Assets? .- .CORRECT
.ANSWER-Rules .prior .to .2012: .Advisers .managing .over .$30 .million .in .assets.
Now .under .Dodd-Frank: .Advisers .managing .over .$100 .million .in .assets.
