STC Series 7 Progress Exam 1A 2025
With 100% Correct Answers
A client is notified by his broker-dealer that certain trades may be executed by an electronic
communication network (ECN). Which of the following choices is a risk of using this type of
system? - CORRECT ANSWER✔✔The system may only accept certain types of orders.
For customers who are subject to the alternative minimum tax, a registered representative
should understand the implications of investing in: - CORRECT ANSWER✔✔Limited partnerships
Which of the following securities assist in the financing of import and export operations? -
CORRECT ANSWER✔✔Bankers' acceptances (BAs)
According to anti-money laundering (AML) procedures, a member firm, when opening a new
account for a non-U.S. citizen, is required to obtain a: - CORRECT ANSWER✔✔Passport number
and country of issuance
What's the tax treatment of dividends if a corporation invests in the preferred or common
shares of another corporation? - CORRECT ANSWER✔✔65% of the dividends are excluded if
ownership exceeds 20%.
Regarding research, which of the following statements is TRUE? - CORRECT ANSWER✔✔Third-
party research is prepared by another entity at the request of a broker-dealer.
A broker-dealer wants to create a sales contest for its registered representatives (RRs) based on
the sale of shares of mutual funds that invest in environmental, social, and governance (ESG)
criteria. For the winner of the contest, the firm will provide a trip to Hawaii. Is this type of sales
contest permitted? - CORRECT ANSWER✔✔No, since the contest is based on the sale of a
specific type of mutual fund.
With 100% Correct Answers
A client is notified by his broker-dealer that certain trades may be executed by an electronic
communication network (ECN). Which of the following choices is a risk of using this type of
system? - CORRECT ANSWER✔✔The system may only accept certain types of orders.
For customers who are subject to the alternative minimum tax, a registered representative
should understand the implications of investing in: - CORRECT ANSWER✔✔Limited partnerships
Which of the following securities assist in the financing of import and export operations? -
CORRECT ANSWER✔✔Bankers' acceptances (BAs)
According to anti-money laundering (AML) procedures, a member firm, when opening a new
account for a non-U.S. citizen, is required to obtain a: - CORRECT ANSWER✔✔Passport number
and country of issuance
What's the tax treatment of dividends if a corporation invests in the preferred or common
shares of another corporation? - CORRECT ANSWER✔✔65% of the dividends are excluded if
ownership exceeds 20%.
Regarding research, which of the following statements is TRUE? - CORRECT ANSWER✔✔Third-
party research is prepared by another entity at the request of a broker-dealer.
A broker-dealer wants to create a sales contest for its registered representatives (RRs) based on
the sale of shares of mutual funds that invest in environmental, social, and governance (ESG)
criteria. For the winner of the contest, the firm will provide a trip to Hawaii. Is this type of sales
contest permitted? - CORRECT ANSWER✔✔No, since the contest is based on the sale of a
specific type of mutual fund.
