STC SERIES 66 Questions with 100% Correct
Answers
Uniform Securities Act Correct Answer: -model law
governing state registration statutes for securities and
financial professionals
-gives guidance to individual states when they draft their
own securities statutes but it's not the actual law of any
one state
State administrator Correct Answer: Uses rules, orders,
and laws to enforce the USA
North American securities administrators associations
Correct Answer: Responsible for updating the USA
through various NASAA model rules and statements of
policy
National securities markets improvement act Correct
Answer: -eliminated the duplication of state and federal
regulation of securities and advisors.
-created specific category of securities that are exempt
from formal registration
,Person Correct Answer: An individual, corporation,
partnership, unincorporated organization, government
or political subdivision of a government, and certain
trusts (any legal entity)
Not a person Correct Answer: minors, deceased,
mentally incompetent
State Correct Answer: Any state, territory, or possession
of the US, including the District of Columbia and Puerto
Rico
Financial firms Correct Answer: Broker dealers, agents /
registered representatives, investment advisors,
investment advisor representatives
Executed transactions for commissions Correct Answer:
Broker dealers and agents / registered representatives
ABC test (advice business compensation) Correct
Answer: Investment advisors and investment advisor
representatives
Broker-Dealer (BD) Correct Answer: A person or firm in
the business of buying and selling securities. A firm may
,act as both broker (agent) and dealer (principal), but
not in the same transaction. Broker/dealers normally
must register with the SEC, the appropriate sros, and any
state in which they do business. Related item(s): agent;
broker; dealer; principal.
Broker dealers must register with Correct Answer: The
state administrator, FINRA, and the SEC
Agents/Registered Representatives Correct Answer:
work for broker-dealer firms, which buy and sell securities
for their customers. They act as middlemen, helping
clients make informed investment decisions
Agents/Registered Representatives must register with
Correct Answer: must register with state administrator
and FINRA
Investment Advisor Correct Answer: Is the firm
(comparable to a broker dealer)
Investment advisors must register with Correct Answer:
The state administrator OR the SEC
, Investment advisor representative Correct Answer: are
individuals who work for and give advice on behalf of
registered investment advisers.
Investment advisor representatives must register with
Correct Answer: State administrator
How Howey test works Correct Answer: Investment of
money, common enterprise, derived from the efforts of
others, expectation of profits
Security Correct Answer: Stocks (including treasury
stock), notes, bonds, debentures, rights and warrants,
investment contracts, pre organization certificates,
certificates of participation, investment company
shares, limited partnerships, variable contracts, options,
viatical investments
Not a security Correct Answer: -Life Insurance,
Endowment policies, Fixed annuities, 4C's: Commodities,
Collectibles, Currencies, Condominiums as a place of
business or residence
Answers
Uniform Securities Act Correct Answer: -model law
governing state registration statutes for securities and
financial professionals
-gives guidance to individual states when they draft their
own securities statutes but it's not the actual law of any
one state
State administrator Correct Answer: Uses rules, orders,
and laws to enforce the USA
North American securities administrators associations
Correct Answer: Responsible for updating the USA
through various NASAA model rules and statements of
policy
National securities markets improvement act Correct
Answer: -eliminated the duplication of state and federal
regulation of securities and advisors.
-created specific category of securities that are exempt
from formal registration
,Person Correct Answer: An individual, corporation,
partnership, unincorporated organization, government
or political subdivision of a government, and certain
trusts (any legal entity)
Not a person Correct Answer: minors, deceased,
mentally incompetent
State Correct Answer: Any state, territory, or possession
of the US, including the District of Columbia and Puerto
Rico
Financial firms Correct Answer: Broker dealers, agents /
registered representatives, investment advisors,
investment advisor representatives
Executed transactions for commissions Correct Answer:
Broker dealers and agents / registered representatives
ABC test (advice business compensation) Correct
Answer: Investment advisors and investment advisor
representatives
Broker-Dealer (BD) Correct Answer: A person or firm in
the business of buying and selling securities. A firm may
,act as both broker (agent) and dealer (principal), but
not in the same transaction. Broker/dealers normally
must register with the SEC, the appropriate sros, and any
state in which they do business. Related item(s): agent;
broker; dealer; principal.
Broker dealers must register with Correct Answer: The
state administrator, FINRA, and the SEC
Agents/Registered Representatives Correct Answer:
work for broker-dealer firms, which buy and sell securities
for their customers. They act as middlemen, helping
clients make informed investment decisions
Agents/Registered Representatives must register with
Correct Answer: must register with state administrator
and FINRA
Investment Advisor Correct Answer: Is the firm
(comparable to a broker dealer)
Investment advisors must register with Correct Answer:
The state administrator OR the SEC
, Investment advisor representative Correct Answer: are
individuals who work for and give advice on behalf of
registered investment advisers.
Investment advisor representatives must register with
Correct Answer: State administrator
How Howey test works Correct Answer: Investment of
money, common enterprise, derived from the efforts of
others, expectation of profits
Security Correct Answer: Stocks (including treasury
stock), notes, bonds, debentures, rights and warrants,
investment contracts, pre organization certificates,
certificates of participation, investment company
shares, limited partnerships, variable contracts, options,
viatical investments
Not a security Correct Answer: -Life Insurance,
Endowment policies, Fixed annuities, 4C's: Commodities,
Collectibles, Currencies, Condominiums as a place of
business or residence
