STC Series 7 Progress Exam 1A 2025
With 100% Correct Answers
Which of the following statements regarding the privacy notice of a broker-dealer is NOT TRUE?
Customers must receive an updated privacy notice annually
A privacy notice does not need to be sent to a consumer
A privacy notice must be provided to all customers at the time a relationship is established with
the firm
Clients may opt out from having their information shared with third parties - CORRECT
ANSWER✔✔A privacy notice does not need to be sent to a consumer
Customers must receive a privacy notice. A consumer (anyone who has not yet established a
relationship with the firm) must be provided with a privacy notice prior to disclosing any
nonpublic personal information to any nonaffiliated third party.
Which of the following documents is NOT needed to open a corporate margin account?
A corporate charter and resolution
A new account form
An hypothecation agreement
A trust agreement - CORRECT ANSWER✔✔A trust agreement
When a corporation opens a margin account, all of the documents listed are needed except a
trust agreement. A trust agreement is needed when opening an account for a retirement plan
or trust account.
, Exclusions from the definition of an investment adviser are given to all of the following groups,
EXCEPT:
Accountants and lawyers who provide advice in a manner incidental to their profession
Publishers
Broker-dealers and their representatives
Advisers who limit advice to corporate debt only - CORRECT ANSWER✔✔The Investment
Advisers Act of 1940 excludes choices
Advisers who limit advice to corporate debt only
(a), (b), and (c). There is no exclusion from the definition for Advisers who limit advice to
corporate debt only.
A registered representative would NOT need to notify his employer to open an account at
another member firm if he effects transactions in which of the following securities?
Investment-grade, nonconvertible bonds
An actively managed emerging markets mutual fund
An exchange-traded fund (ETF) that is indexed to the S&P 500
A real estate investment trust listed on the NYSE - CORRECT ANSWER✔✔An actively managed
emerging markets mutual fund
Normally, an employee of a FINRA member firm who wishes to open an account at another
member firm must notify his firm and the executing firm, in writing, prior to opening a
securities account. An exception is made if the employee effects transactions only in mutual
funds, unit investment trusts, and variable annuities.
Under industry rules, the final approval to open a new account is given by a(n):
Registered representative
With 100% Correct Answers
Which of the following statements regarding the privacy notice of a broker-dealer is NOT TRUE?
Customers must receive an updated privacy notice annually
A privacy notice does not need to be sent to a consumer
A privacy notice must be provided to all customers at the time a relationship is established with
the firm
Clients may opt out from having their information shared with third parties - CORRECT
ANSWER✔✔A privacy notice does not need to be sent to a consumer
Customers must receive a privacy notice. A consumer (anyone who has not yet established a
relationship with the firm) must be provided with a privacy notice prior to disclosing any
nonpublic personal information to any nonaffiliated third party.
Which of the following documents is NOT needed to open a corporate margin account?
A corporate charter and resolution
A new account form
An hypothecation agreement
A trust agreement - CORRECT ANSWER✔✔A trust agreement
When a corporation opens a margin account, all of the documents listed are needed except a
trust agreement. A trust agreement is needed when opening an account for a retirement plan
or trust account.
, Exclusions from the definition of an investment adviser are given to all of the following groups,
EXCEPT:
Accountants and lawyers who provide advice in a manner incidental to their profession
Publishers
Broker-dealers and their representatives
Advisers who limit advice to corporate debt only - CORRECT ANSWER✔✔The Investment
Advisers Act of 1940 excludes choices
Advisers who limit advice to corporate debt only
(a), (b), and (c). There is no exclusion from the definition for Advisers who limit advice to
corporate debt only.
A registered representative would NOT need to notify his employer to open an account at
another member firm if he effects transactions in which of the following securities?
Investment-grade, nonconvertible bonds
An actively managed emerging markets mutual fund
An exchange-traded fund (ETF) that is indexed to the S&P 500
A real estate investment trust listed on the NYSE - CORRECT ANSWER✔✔An actively managed
emerging markets mutual fund
Normally, an employee of a FINRA member firm who wishes to open an account at another
member firm must notify his firm and the executing firm, in writing, prior to opening a
securities account. An exception is made if the employee effects transactions only in mutual
funds, unit investment trusts, and variable annuities.
Under industry rules, the final approval to open a new account is given by a(n):
Registered representative
