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STC Series 66 Final 7, 8, 9, 10, 11 exam questions and answers.
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STC Series 66 Final 7, 8, 9, 10, 11 exam questions and answers.
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STC Series 66 Final 7,8, 9, 10, 11 exam
questions and answers
According to the Securities Exchange Act of 1934, which of the
following is NOT required to be included on the confirmation for a
bond trade? - answer Disclosure of the bond's rating
Although a bond's rating is not required to be included on a
confirmation, if the bond is unrated, this fact must be disclosed. A
bond's price and its yield-to-maturity at the time of the trade must
be disclosed on a confirmation.
A registered investment adviser is normally required to post a
surety bond to satisfy the Uniform Securities Act requirements.
Under which TWO of the following conditions could this requirement
be waived?
The investment adviser does not maintain custody of client assets.
The investment adviser has a net worth of $35,000.
The investment adviser is a subsidiary of a broker-dealer.
The investment adviser maintains custody of customer assets. -
answer I and II
If an investment adviser does not maintain custody of client assets
A N D has a minimum net worth of $35,000, the surety bonding
requirement could be waived by the Administrator.
Which of the following is NOT an option exercise style? - answer
Uncovered
Uncovered is a term that relates to an option position or strategy
that investors may employ and it's in no way connected to an option
exercise style. American, European, and Capped are option exercise
,styles. American style options allow the owners to exercise their
contracts any time prior to expiration. European style options allow
the owners to exercise their contracts only during a specified
period, typically on the business day of expiration. Capped style
options will be exercised automatically if the value of the underlying
security hits or exceeds a specified capped price.
Which of the following items is not included in an income
statement? - answer Retained earnings
The income statement for a business will disclose its sales
(revenues) less its expenses. Interest and taxes are both expenses
which are reflected on a company's income statement. However,
retained earnings reflects a company's historical earnings and is
found on the company's balance sheet, not its income statement.
Which of the following statements best describes an Administrator's
right to examine the books and records of a broker-dealer? - answer
Books and records of any broker-dealer registered with the state
Administrator may be inspected at any time by the state
administrator
A state Administrator may conduct a surprise inspection at any
time. Providing one day's verbal notice would not be a surprise
inspection. It is not necessary to obtain a court order, or to notify
the office of the Administrator in the state in which the broker-
dealer is located.
Which TWO of the following statements are TRUE regarding
Subchapter S Corporations?
Their status is terminated if there are more than 100 shareholders.
They have a federal charter.
Shareholders have unlimited liability.
Income and losses flow through to shareholders. - answer I and IV
Subchapter S status is revoked if there are more than 100
shareholders. As with limited partners, shareholders have limited
liability, and income and losses flow through to shareholders.
Subchapter S Corporations have state charters
,When does a person become eligible for Social Security benefits? -
answer After she's worked 40 quarters (think 40 hour work week)
Social Security eligibility is based on credits that taxpayers earn by
working. Individuals become eligible for Social Security benefits if
they have earned 40 credits. Taxpayers can earn up to four credits
for every year they work (i.e., one per quarter) and taxpayers
become eligible by earning 40 credits. If an individual is earning the
maximum credits per year, she can become eligible after 10 years (4
credits per year x 10 years = 40 credits). Be careful, even if a
person has earned enough credits, she cannot take benefits until
she turns age 62.
A client portfolio is invested in a well-diversified group of large-cap
stocks. Which of the following strategies would minimize the market
risk connected with this portfolio? - answer Buying puts on a large-
cap index
Buying puts is a way to hedge a stock portfolio against market
downturns. By buying puts on a large-cap index, the investor could
minimize her losses in the event of a downturn in the large-cap
market. (
A sector rotation strategy would include investing in which of the
following? - answer Industrial stocks in an expanding economy
A sector rotation strategy involves investing in businesses that will
grow along with the economy. Industrial stocks are cyclical and will
rise and fall with the economy. The best time to buy technology
stocks is right before an expansion, not during a contraction.
Commodities help protect against inflation, but inflation is generally
not anticipated if the market is peaking. Consumer goods companies
make staples (e.g., groceries and household products) and would
generally perform well during a recession. (67731)
An Administrator from State A has jurisdiction over an offer made:
On a radio or television program that originated in State A
, On a radio or television program broadcast in State A where the
communication originated outside the state
In a newspaper circulated in State A, but published in State B
In a newspaper published in State A, but with more than two-thirds
of its circulation outside the state in the last year - answer I only
Generally, an Administrator will have jurisdiction over any offer if it
originated in that state, was directed in that state, or was accepted
in the Administrator's state. However, if the communication
originated outside the state and was in the form of a radio or
television broadcast, the Administrator would not have jurisdiction.
The Administrator has jurisdiction if the newspaper is published in
that state and more than one-third of the circulation is inside that
state. (62498)
Which of the following choices represent(s) reasons why a limited
partnership is the business form often used in direct participation
programs?
Partnerships are not considered a separate entity for tax purposes.
Partnerships pass through the results of their operations for
treatment on the individual's tax return.
Partners are never liable for tax when they invest through this type
of structure. - answer I and II only
Partnerships are not considered a separate entity, as are
corporations, for tax purposes. Instead, income or loss from the
partnership's operations is passed through to the partners for tax
treatment. (III) is not a correct statement because taxes need to be
paid by the partners if the business reports a profit.
According to the Uniform Securities Act, if the Administrator
revokes, denies, or suspends a registration, it would NOT be
required to provide which of the following? - answer All documents
created by the Administrator's office regarding the action
Prior to revoking a registration, an Administrator is required to
provide a registrant with a written notice, written findings of fact,
and an opportunity for a hearing. However, the Administrator is not
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