STC SERIES 66 GREENLIGHT EXAM WITH
CORRECT ACTUAL QUESTIONS AND
CORRECTLY WELL DEFINED ANSWERS
LATEST ALREADY GRADED A+ 2025 – 2026
An investment adviser representative who recommends a
hedge fund to an accredited investor must confirm that the
investor meets the financial test. The minimum net worth
requirement is: - ANSWERS-$1 million
It is important to remember that when hedge funds are
recommended, solicitations must be limited to accredited
investors. An accredited investor is a person who meet the
following financial test—net worth of $1 million OR annual
income of $200,000 in each of the last two years ($300,000
with a spouse). If the question was asking about the
necessary investor standards for entering into a
performance-based fee arrangement, the investor must be a
qualified client. The financial test for a qualified client is
,having assets under management of at least $1 million or a
net worth of $2.1 million.
Which of the following types of stocks is the MOST suitable
for a conservative investor who has a low-risk tolerance, but
wants to invest in equity securities? - ANSWERS-Large-caps
Large-cap stocks are those that are generally issued by well-
established companies that have a long history of profits
and dividend payments. Of the choices given, the large-cap
category is the most suitable for the investor with a low-risk
tolerance and an interest in equities.
An investor is long 1,000 bushels of wheat that she
purchased for 50 cents per bushel. What's the investor's
gain or loss if the price of wheat has dropped to 45 cents per
bushel? - ANSWERS-A loss of $50
Since the investor went long and the price went down, she
will be losing money. She bought the wheat for $0.50 per
bushel (50 cents = $0.50) and the price is now $0.45;
therefore, she has lost $0.05 per bushel. Since the position
is 1,000 bushels, the total loss is $50 (1,000 bu. x $0.05 loss)
which will be realized if the position is sold.
Portfolio A has a standard deviation of 3.50%, while
Portfolio B has a standard deviation of 2.75%. How are
,these portfolios related to one another? - ANSWERS-
Portfolio A has more risk than Portfolio B.
Standard deviation is the amount that a portfolio's (or
asset's) returns will deviate from its historical average. In
the Modern Portfolio Theory (MPT), standard deviation is
used as a measure of a portfolio's risk. If a portfolio has a
higher standard deviation, its indicative of a portfolio with
greater risk. Although riskier portfolios and stocks will
outperform safer ones over the long-term, safer portfolios
will often perform better than riskier ones (e.g., during a
recession).
A state Administrator is permitted to apply all of the
following administrative actions, EXCEPT: - ANSWERS-
Require a higher minimum financial requirement than the
state in which a broker-dealer maintains its principal office.
No other state Administrator may impose financial
requirements on a broker-dealer that are more restrictive
than those that are established by the state in which the
broker-dealer maintains its principal (main) office
Under NASAA's Statement of Policy on Unethical Business
Practices and regarding a customer order, an agent is
considered to be exercising discretionary authority if the
client DOES NOT specify which TWO of the following?
, The price of execution
The specific security and number of shares to be bought or
sold
Whether to buy or sell
The time of execution - ANSWERS-II and III
If a client's order does not specify the action (whether to
buy or sell), the amount (e.g., the number of shares), and
the asset (e.g., the specific stock), the order is considered
discretionary and power of attorney is required. However, if
an agent receives a client's order which specifies the action,
amount, and asset, but the agent is able to determine the
time and/or price of execution, the order is not considered
discretionary
Disadvantages of investing in a C Corporation include which
of the following choices?
Shareholders are taxed on dividends that they receive.
The corporation is taxed on its income.
Shareholders may not deduct their share of the
corporation's losses on their personal tax returns.
Shareholders are paid last if the corporation liquidates. -
ANSWERS-I, II, III, and IV
All of the choices are disadvantages of investing in a C
Corporation
CORRECT ACTUAL QUESTIONS AND
CORRECTLY WELL DEFINED ANSWERS
LATEST ALREADY GRADED A+ 2025 – 2026
An investment adviser representative who recommends a
hedge fund to an accredited investor must confirm that the
investor meets the financial test. The minimum net worth
requirement is: - ANSWERS-$1 million
It is important to remember that when hedge funds are
recommended, solicitations must be limited to accredited
investors. An accredited investor is a person who meet the
following financial test—net worth of $1 million OR annual
income of $200,000 in each of the last two years ($300,000
with a spouse). If the question was asking about the
necessary investor standards for entering into a
performance-based fee arrangement, the investor must be a
qualified client. The financial test for a qualified client is
,having assets under management of at least $1 million or a
net worth of $2.1 million.
Which of the following types of stocks is the MOST suitable
for a conservative investor who has a low-risk tolerance, but
wants to invest in equity securities? - ANSWERS-Large-caps
Large-cap stocks are those that are generally issued by well-
established companies that have a long history of profits
and dividend payments. Of the choices given, the large-cap
category is the most suitable for the investor with a low-risk
tolerance and an interest in equities.
An investor is long 1,000 bushels of wheat that she
purchased for 50 cents per bushel. What's the investor's
gain or loss if the price of wheat has dropped to 45 cents per
bushel? - ANSWERS-A loss of $50
Since the investor went long and the price went down, she
will be losing money. She bought the wheat for $0.50 per
bushel (50 cents = $0.50) and the price is now $0.45;
therefore, she has lost $0.05 per bushel. Since the position
is 1,000 bushels, the total loss is $50 (1,000 bu. x $0.05 loss)
which will be realized if the position is sold.
Portfolio A has a standard deviation of 3.50%, while
Portfolio B has a standard deviation of 2.75%. How are
,these portfolios related to one another? - ANSWERS-
Portfolio A has more risk than Portfolio B.
Standard deviation is the amount that a portfolio's (or
asset's) returns will deviate from its historical average. In
the Modern Portfolio Theory (MPT), standard deviation is
used as a measure of a portfolio's risk. If a portfolio has a
higher standard deviation, its indicative of a portfolio with
greater risk. Although riskier portfolios and stocks will
outperform safer ones over the long-term, safer portfolios
will often perform better than riskier ones (e.g., during a
recession).
A state Administrator is permitted to apply all of the
following administrative actions, EXCEPT: - ANSWERS-
Require a higher minimum financial requirement than the
state in which a broker-dealer maintains its principal office.
No other state Administrator may impose financial
requirements on a broker-dealer that are more restrictive
than those that are established by the state in which the
broker-dealer maintains its principal (main) office
Under NASAA's Statement of Policy on Unethical Business
Practices and regarding a customer order, an agent is
considered to be exercising discretionary authority if the
client DOES NOT specify which TWO of the following?
, The price of execution
The specific security and number of shares to be bought or
sold
Whether to buy or sell
The time of execution - ANSWERS-II and III
If a client's order does not specify the action (whether to
buy or sell), the amount (e.g., the number of shares), and
the asset (e.g., the specific stock), the order is considered
discretionary and power of attorney is required. However, if
an agent receives a client's order which specifies the action,
amount, and asset, but the agent is able to determine the
time and/or price of execution, the order is not considered
discretionary
Disadvantages of investing in a C Corporation include which
of the following choices?
Shareholders are taxed on dividends that they receive.
The corporation is taxed on its income.
Shareholders may not deduct their share of the
corporation's losses on their personal tax returns.
Shareholders are paid last if the corporation liquidates. -
ANSWERS-I, II, III, and IV
All of the choices are disadvantages of investing in a C
Corporation
