STC Series 66 exam
questions and answers
Jurisdiction: Where is the offer made for U.S. Mail or Telephone? -
answer In two states at most.
The state from which it originated and the state to which it is
directed.
(For mail, not the state to which it may be forwarded).
Jurisdiction: Where is the offer made for Television or Radio? -
answer One state only.
The state in which the camera or microphone is located)
Jurisdiction: Where is the offer made for Newspaper or Magazine? -
answer One state or no state.
The state in which the newspaper or magazine is published, unless
more than two-thirds of the circulation is outside the state.
Exempt Issuers - answer -US Government and Agencies
-Municipalities
-Non-profit, religious, educational and charitable organizations.
-Banks, Savings & Loans, and Trust companies.
-Railroads.
-Small business investment companies.
-Commercial Paper.
,-Only Sophisticated ivestors
-No more than 35 Non-Accredited Investors
-Buyer receives Offering Memorandum.
-Resale of security is restricted.
Rule 147 Interstate Offerings:
-100% purchasers in state.
-80% of company's assets are in state.
-80% of the company's business must be carried out in the state.
-80% of operations revenue is generated in the state.
Small-Issue Exemption- Reg A
-Less than $5 million raised during 12 month period.
*Offering Statement filed.
What is another word for tax rate? - answer Marginal Rate (after
the last dollar that you earn each year is taxed at your marginal
rate).
Open-End (Mutual Fund) - answer Continuously issue new shares
-Common shares only
-Sold by prospectus.
Sold at NAV + sales charge (if any)
Sponsor stands ready to redeem shares at the next calculated NAV
(forward pricing)
Shares remain in the primary market.
, Cannot be sold short.
Closed-End fund - answer Usually do a one-time issuance of
common shares.
-May issue preferred stock or bonds.
Shares may trade at a discount or premium to NAV (based on
supply/demand) with a commission or markup added.
Sponsor does not stand ready to redeem shares.
Shares trade in secondary market.
May be sold short.
Trust - answer A legal arrangement in which an individual (creator)
gives fiduciary control of property to a person or institution
(trustee) for the benefit of beneficiaries.
- Creator = Grantor, Donor, Trustor, Settlor, or Maker
Investment Company Act of 1940 - answer Created to reduce
abuses in the sales of investment company securities.
Assures investors receive adequate and truthful information.
Three types of investment companies:
-Face Amount Certificate Companies.
-Unit Investment Trusts (UITs)
-Management Companies (two types)
*Open-End (mutual funds)
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