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Series 6 - STC Greenlight Exam 01 Questions
with 100% Correct Answers 2026
An investor asks a registered representative to underline the
most important facts found in a preliminary prospectus. The
registered representative:
A) May not do this since it violates federal securities laws
B) May do this with the approval of a principal at the firm
C) May do this with the approval of FINRA
D) May do this without restrictions or approvals - ANSWER A)
May not do this since it violates federal securities laws
Once a prospectus is filed with the SEC, it may not be amended
in any way.
Listed below are the net asset value and offer prices of two
investment companies:
Net Asset Value:
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Fund A - $9.20
Fund B - $12.50
Offer Price:
Fund A - $10.00
Fund B- $12.00
Based upon the information shown above, you can determine
that:
A) Both funds are open-end
B) Both funds are closed-end
C) A is closed-end and B is open-end
D) B is definitely closed-end and A is probably open-end -
ANSWER D) B is definitely closed-end and A is probably open-
end
When the net asset value is higher than the offering price, the
fund definitely is closed-end. Closed-end funds have a price
determined by supply and demand, and their prices may be
more or less than the net asset value per share, while open-end
funds are prohibited from ever selling their shares for less than
the net asset value. Thus Fund B, which has an offering price
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less than its net asset value, must be a closed-end fund, while
Fund A could be either.
Cash dividends declared by a corporation:
A) Must be approved for payment by the shareholders
B) Must be approved for payment by the board of directors
C) Are taxed as capital gains
D) Are not taxed - ANSWER B) Must be approved for payment
by the board of directors
Cash dividends declared by a corporation must be approved by
the corporation's board of directors. Shareholder approval is
not needed to declare a cash dividend, although a company
must obtain shareholder approval for a stock split.
Any cash dividends paid to shareholders are taxed as ordinary
income in the year received, not capital gains.
A customer calls to lodge a complaint against a registered
representative (RR). The customer should be advised to:
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A) Call FINRA
B) Call the RR
C) Call the appropriate principal
D) Put the complaint in writing - ANSWER D) Put the complaint
in writing
In order to be officially considered a complaint, the complaint
should be put in writing. This mandates an appropriate
response from the member firm.
A Regulation D offering may be sold to a maximum of:
A) 15 nonaccredited investors
B) 15 accredited investors
C) 35 nonaccredited investors
D) 35 accredited investors - ANSWER C) 35 nonaccredited
investors
A Regulation D (private placement) offering may be sold to a
maximum of 35 nonaccredited investors. There is no limit on
the number of accredited investors. An individual will be
Series 6 - STC Greenlight Exam 01 Questions
with 100% Correct Answers 2026
An investor asks a registered representative to underline the
most important facts found in a preliminary prospectus. The
registered representative:
A) May not do this since it violates federal securities laws
B) May do this with the approval of a principal at the firm
C) May do this with the approval of FINRA
D) May do this without restrictions or approvals - ANSWER A)
May not do this since it violates federal securities laws
Once a prospectus is filed with the SEC, it may not be amended
in any way.
Listed below are the net asset value and offer prices of two
investment companies:
Net Asset Value:
,Page 2 of 48
Fund A - $9.20
Fund B - $12.50
Offer Price:
Fund A - $10.00
Fund B- $12.00
Based upon the information shown above, you can determine
that:
A) Both funds are open-end
B) Both funds are closed-end
C) A is closed-end and B is open-end
D) B is definitely closed-end and A is probably open-end -
ANSWER D) B is definitely closed-end and A is probably open-
end
When the net asset value is higher than the offering price, the
fund definitely is closed-end. Closed-end funds have a price
determined by supply and demand, and their prices may be
more or less than the net asset value per share, while open-end
funds are prohibited from ever selling their shares for less than
the net asset value. Thus Fund B, which has an offering price
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less than its net asset value, must be a closed-end fund, while
Fund A could be either.
Cash dividends declared by a corporation:
A) Must be approved for payment by the shareholders
B) Must be approved for payment by the board of directors
C) Are taxed as capital gains
D) Are not taxed - ANSWER B) Must be approved for payment
by the board of directors
Cash dividends declared by a corporation must be approved by
the corporation's board of directors. Shareholder approval is
not needed to declare a cash dividend, although a company
must obtain shareholder approval for a stock split.
Any cash dividends paid to shareholders are taxed as ordinary
income in the year received, not capital gains.
A customer calls to lodge a complaint against a registered
representative (RR). The customer should be advised to:
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A) Call FINRA
B) Call the RR
C) Call the appropriate principal
D) Put the complaint in writing - ANSWER D) Put the complaint
in writing
In order to be officially considered a complaint, the complaint
should be put in writing. This mandates an appropriate
response from the member firm.
A Regulation D offering may be sold to a maximum of:
A) 15 nonaccredited investors
B) 15 accredited investors
C) 35 nonaccredited investors
D) 35 accredited investors - ANSWER C) 35 nonaccredited
investors
A Regulation D (private placement) offering may be sold to a
maximum of 35 nonaccredited investors. There is no limit on
the number of accredited investors. An individual will be
