STC Series 7 Progress Exam 5B 2025
With 100% Correct Answers
Which of the following items is NOT found on a sell order ticket?
A. If the account is discretionary, whether discretion was exercised
B. The customer's original purchase price for the stock
C. The location of the securities
D. Whether the trade was solicited or unsolicited - CORRECT ANSWER✔✔B. The customer's
original purchase price for the stock
A sell order ticket doesn't indicate the investor's original purchase price. All order tickets must
contain the customer's account number, whether discretion was exercised, whether the trade
was solicited by the registered representative or unsolicited, and it must also indicate the client
is selling long (shares that are owned) or selling short (shares that are borrowed). If the client is
long the stock, the location of the securities must be indicated (long in the customer's account
or held by the customer).
In January, an investor receives a bonus from her employer and wants to invest the funds. If she
needs to have access to the funds in April, her RR should NOT recommend which of the
following municipal securities?
A. A variable rate demand obligation (VRDO)
B. An auction rate security (ARS)
C. A tax anticipation note (TAN)
D. A bond anticipation note (BAN) - CORRECT ANSWER✔✔B. An auction rate security (ARS)
VRDOs and ARSs are both long-term securities with short-term trading features. VRDOs have a
put feature that permits the holder to sell the securities back to the issuer or third party.
However, auction rate securities (ARSs) don't have this feature and, if the auction fails, the
investor may not have immediate access to his funds. TANs and BANs are short-term municipal
, notes and, even if their maturities extend beyond April, they can easily be sold in the secondary
market. (15665)
To apply for a securities registration, a previously unregistered individual must:
1. Complete Form U5
2. Complete Form U4
3. File the necessary form with FINRA
4. File the necessary form with the SEC
A. I and III only
B. I and IV only
C. II and III only
D. II and IV only - CORRECT ANSWER✔✔C. II and III only
To apply for a securities registration, a person must file Form U4 with FINRA.
On Tuesday, the S&P 500 Index closed at 1,600. At 11:30 the next morning, the S&P 500 Index is
at 1,488. All NMS stocks will:
A. Stop trading for 15 minutes
B. Stop trading for 30 minutes
C. Stop trading for the remainder of the day
D. Continue to trade - CORRECT ANSWER✔✔A. Stop trading for 15 minutes
If the S&P 500 Index falls by 7% from the previous trading day's closing price, it is defined as a
Level 1 Market Decline and triggers a 15-minute trading halt. In this question, the drop from the
closing price of 1,600 to 1,488 the next day (112 points) is a 7% decline.
Municipal bearer bonds that are in default of interest, trade:
A. With unpaid coupons attached
B. Without unpaid coupons attached
With 100% Correct Answers
Which of the following items is NOT found on a sell order ticket?
A. If the account is discretionary, whether discretion was exercised
B. The customer's original purchase price for the stock
C. The location of the securities
D. Whether the trade was solicited or unsolicited - CORRECT ANSWER✔✔B. The customer's
original purchase price for the stock
A sell order ticket doesn't indicate the investor's original purchase price. All order tickets must
contain the customer's account number, whether discretion was exercised, whether the trade
was solicited by the registered representative or unsolicited, and it must also indicate the client
is selling long (shares that are owned) or selling short (shares that are borrowed). If the client is
long the stock, the location of the securities must be indicated (long in the customer's account
or held by the customer).
In January, an investor receives a bonus from her employer and wants to invest the funds. If she
needs to have access to the funds in April, her RR should NOT recommend which of the
following municipal securities?
A. A variable rate demand obligation (VRDO)
B. An auction rate security (ARS)
C. A tax anticipation note (TAN)
D. A bond anticipation note (BAN) - CORRECT ANSWER✔✔B. An auction rate security (ARS)
VRDOs and ARSs are both long-term securities with short-term trading features. VRDOs have a
put feature that permits the holder to sell the securities back to the issuer or third party.
However, auction rate securities (ARSs) don't have this feature and, if the auction fails, the
investor may not have immediate access to his funds. TANs and BANs are short-term municipal
, notes and, even if their maturities extend beyond April, they can easily be sold in the secondary
market. (15665)
To apply for a securities registration, a previously unregistered individual must:
1. Complete Form U5
2. Complete Form U4
3. File the necessary form with FINRA
4. File the necessary form with the SEC
A. I and III only
B. I and IV only
C. II and III only
D. II and IV only - CORRECT ANSWER✔✔C. II and III only
To apply for a securities registration, a person must file Form U4 with FINRA.
On Tuesday, the S&P 500 Index closed at 1,600. At 11:30 the next morning, the S&P 500 Index is
at 1,488. All NMS stocks will:
A. Stop trading for 15 minutes
B. Stop trading for 30 minutes
C. Stop trading for the remainder of the day
D. Continue to trade - CORRECT ANSWER✔✔A. Stop trading for 15 minutes
If the S&P 500 Index falls by 7% from the previous trading day's closing price, it is defined as a
Level 1 Market Decline and triggers a 15-minute trading halt. In this question, the drop from the
closing price of 1,600 to 1,488 the next day (112 points) is a 7% decline.
Municipal bearer bonds that are in default of interest, trade:
A. With unpaid coupons attached
B. Without unpaid coupons attached
