STC Series 7 Exam 2025 With 100%
Correct Answers
Securities Act of 1933 - CORRECT ANSWER✔✔New issues
Primary Markets
IPOs
Issuer Sales
Full Disclosure
Prospectus
Red Herring
SEC never approves
Registers Paper
Securities Exchange Act of 1934 - CORRECT ANSWER✔✔Secondary Market
Trading Markets
Anti fraud Rules
Margin: Regulation T
Created the SEC
Registers Persons (exchanges, firms, individuals)
Maloney Act of 1938 - CORRECT ANSWER✔✔Created the former SRO for the Over the Counter
Market
(NASD)
, Investment Company Act of 1940 - CORRECT ANSWER✔✔ABC Test (Advice, Business,
Compensation)
Incidental Advisers (lawyers, accountants, teachers, engineers) are excluded from the definition
of advisers
Securities Investor Protection Act of 1970 (SIPA) - CORRECT ANSWER✔✔Firm Bankruptcy
500,000 coverage per seperate customer
250,000 coverage on cash
Industry funded
Not part of the US Government
Insider Trading and Securities Fraud Protection Act of 1988 - CORRECT ANSWER✔✔Misuse of
Material , Nonpublic information
Treble (3x damages)
5,000,000 Maximum Fine
20 years maximum prison
ANY person can be violated of insider trading laws
Telephone Consumer Protection Act of 1991 (TCPA) - CORRECT ANSWER✔✔Do not call lists
8:00am-9:00pm (customer's time zone)
US PATRIOT Act - CORRECT ANSWER✔✔Anti-Money Laundering
(>10,000) Currency Transaction report (CTR)s
Suspicious Activity Report (SAR)
The Penny Stock Rule of 1991 - CORRECT ANSWER✔✔No new investors of low-price securities
in OTC
Correct Answers
Securities Act of 1933 - CORRECT ANSWER✔✔New issues
Primary Markets
IPOs
Issuer Sales
Full Disclosure
Prospectus
Red Herring
SEC never approves
Registers Paper
Securities Exchange Act of 1934 - CORRECT ANSWER✔✔Secondary Market
Trading Markets
Anti fraud Rules
Margin: Regulation T
Created the SEC
Registers Persons (exchanges, firms, individuals)
Maloney Act of 1938 - CORRECT ANSWER✔✔Created the former SRO for the Over the Counter
Market
(NASD)
, Investment Company Act of 1940 - CORRECT ANSWER✔✔ABC Test (Advice, Business,
Compensation)
Incidental Advisers (lawyers, accountants, teachers, engineers) are excluded from the definition
of advisers
Securities Investor Protection Act of 1970 (SIPA) - CORRECT ANSWER✔✔Firm Bankruptcy
500,000 coverage per seperate customer
250,000 coverage on cash
Industry funded
Not part of the US Government
Insider Trading and Securities Fraud Protection Act of 1988 - CORRECT ANSWER✔✔Misuse of
Material , Nonpublic information
Treble (3x damages)
5,000,000 Maximum Fine
20 years maximum prison
ANY person can be violated of insider trading laws
Telephone Consumer Protection Act of 1991 (TCPA) - CORRECT ANSWER✔✔Do not call lists
8:00am-9:00pm (customer's time zone)
US PATRIOT Act - CORRECT ANSWER✔✔Anti-Money Laundering
(>10,000) Currency Transaction report (CTR)s
Suspicious Activity Report (SAR)
The Penny Stock Rule of 1991 - CORRECT ANSWER✔✔No new investors of low-price securities
in OTC
