SERIES 66 - STC CH 1 - LAWS REGULATIONS AND
GUIDELINES OVERVIEW QUESTIONS AND
ANSWERS GRADED A+ 100% VERIFIED.
What rules govern the registration of an issue in any state in which it will be
offered? - CORRECT ANSWER - Blue-Sky Laws govern the registration of an issue in
any state in which it will be offered.
True/False: Blue-Sky Laws apply to broker-deatlers and agents operating within a
state. - CORRECT ANSWER - True. Blue-Sky Laws apply to the BD and agents
operating within a state.
How is a firm acting if it is trading for, or from, its own inventory? - CORRECT
ANSWER - As a principal/dealer is how a firm is acting if it is trading for, or from,
its own inventory
How is a firm acting if it effects trades on behalf of its customers, without taking
the other side of the trade? - CORRECT ANSWER - As an agent or broker is how
how a firm is acting if it effects trades on behalf of its customers, without taking
the other side of the trade.
True/False: A firm producing investment research for BDs to deliver to clients is
considered an IA (Investment Advisor) - CORRECT ANSWER - True. Since A-dvice is
being provided, as a B-usiness and C-ompensation is received, the "ABC" test is
met
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, True/False: The Uniform Securities Act (USA) is exactly the same in every state? -
CORRECT ANSWER - False. The USA is a model law, not the actual law of any state.
According to the USA, who is included under the term "person?" - CORRECT
ANSWER - Person is defined as any legal entity, including individuals
(clients/agents/IARs), BDs, IAs, issuers, corporations and partnerships
A securities firm that executes trades for its own account or the account of others
is deemed a ______________? - CORRECT ANSWER - A broker-dealer (BD) is what
a securities firm is deemed that trades for its own account or the account of
others
Who is the official that monitors and administers a state's securities laws? -
CORRECT ANSWER - The Administrator or Commissioner is the official that
monitors and administers a state's securities laws
Identify who is considered a person under the USA - CORRECT ANSWER - Business
entities, issuers, estates, governments, individuals (e.g. clients, IARs and agents)
are all considered a person under the USA
What is the general definition of an investment adviser? - CORRECT ANSWER - A
firm that provides advice/analyses regarding securities, as part of a business, and
for compensation is the general definition of an investment advisor
According to the USA, who is included under the term person? - CORRECT
ANSWER - Any legal entity, including individuals (clients/agents/IAs, issuers,
corporations and partnerships) are included under the term "person" according to
USA
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GUIDELINES OVERVIEW QUESTIONS AND
ANSWERS GRADED A+ 100% VERIFIED.
What rules govern the registration of an issue in any state in which it will be
offered? - CORRECT ANSWER - Blue-Sky Laws govern the registration of an issue in
any state in which it will be offered.
True/False: Blue-Sky Laws apply to broker-deatlers and agents operating within a
state. - CORRECT ANSWER - True. Blue-Sky Laws apply to the BD and agents
operating within a state.
How is a firm acting if it is trading for, or from, its own inventory? - CORRECT
ANSWER - As a principal/dealer is how a firm is acting if it is trading for, or from,
its own inventory
How is a firm acting if it effects trades on behalf of its customers, without taking
the other side of the trade? - CORRECT ANSWER - As an agent or broker is how
how a firm is acting if it effects trades on behalf of its customers, without taking
the other side of the trade.
True/False: A firm producing investment research for BDs to deliver to clients is
considered an IA (Investment Advisor) - CORRECT ANSWER - True. Since A-dvice is
being provided, as a B-usiness and C-ompensation is received, the "ABC" test is
met
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, True/False: The Uniform Securities Act (USA) is exactly the same in every state? -
CORRECT ANSWER - False. The USA is a model law, not the actual law of any state.
According to the USA, who is included under the term "person?" - CORRECT
ANSWER - Person is defined as any legal entity, including individuals
(clients/agents/IARs), BDs, IAs, issuers, corporations and partnerships
A securities firm that executes trades for its own account or the account of others
is deemed a ______________? - CORRECT ANSWER - A broker-dealer (BD) is what
a securities firm is deemed that trades for its own account or the account of
others
Who is the official that monitors and administers a state's securities laws? -
CORRECT ANSWER - The Administrator or Commissioner is the official that
monitors and administers a state's securities laws
Identify who is considered a person under the USA - CORRECT ANSWER - Business
entities, issuers, estates, governments, individuals (e.g. clients, IARs and agents)
are all considered a person under the USA
What is the general definition of an investment adviser? - CORRECT ANSWER - A
firm that provides advice/analyses regarding securities, as part of a business, and
for compensation is the general definition of an investment advisor
According to the USA, who is included under the term person? - CORRECT
ANSWER - Any legal entity, including individuals (clients/agents/IAs, issuers,
corporations and partnerships) are included under the term "person" according to
USA
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