STC SERIES 66 CHAPTER 3 TEST
COMPLETE QUESTIONS AND ANSWERS
WITH VERIFIED SOLUTIONS LATEST
UPDATE 2025/2026
Fred works for Lasker Securities and is holding an investment seminar in
Connecticut. Fred has sent 100 invitations to people located in New York. Since
his firm has no place of business in New York, he has the responses returned to his
office in Connecticut. Which TWO of the following statements are TRUE?
Lasker Securities would not need to be registered as a broker-dealer in New York
if it has no place of business in New York, and the seminar is to be held in
Connecticut.
Lasker Securities would need to be registered as a broker-dealer in New York,
since it is conducting business in the state.
Fred would need to register in the state of New York as an agent, since he is doing
business within the state.
Fred would not need to be registered as an agent in New York, but must be
registered in Connecticut, since the seminar will take place in Connecticut. -
CORRECT ANSWER - II and III
Lasker is conducting business in the state of New York if its agents solicit
securities business within that state, even though the broker-dealer has no
place of business within the state. Sending invitations to attend an investment
seminar is considered doing business. Fred must be registered as an agent in
both states since he is acting on behalf of the broker-dealer in the solicitation
of securities business in New York, and conducting an investment seminar in
Connecticut.
Which of the following statements is TRUE concerning the posting of a bond by a
broker-dealer? - CORRECT ANSWER - There is no bond requirement if the
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,broker-dealer does not have custody or discretionary authority over client funds or
securities
The Administrator may require broker-dealers to post bonds if they have custody
of or discretionary authority over client funds or securities. The bond may be
waived if the broker-dealer's net capital exceeds a specified amount. The
Administrator may determine this amount.
A soon-to-be-registered agent may take which of the following actions?
Accept unsolicited orders
Invite prospective clients to seminars
Provide research reports to other agents for use with their clients
Cold-call potential clients and provide quotes - CORRECT ANSWER - II and III
only
A broker-dealer may not allow an unregistered individual to act as an agent unless
the agent is exempt. The soon-to-be-registered agent in this scenario may not
accept orders, solicited or unsolicited, be compensated based on sales, or cold-call
clients. Inviting clients to seminars and providing research to other agents are not
considered activities associated with an agent.
What form is required when registering as a broker-dealer? - CORRECT
ANSWER - Form BD
Form BD is the Uniform Application for Broker-Dealer Registration, which is filed
with the SEC, SROs that have jurisdiction, and the appropriate states, through the
Central Registration Depository (CRD) operated by FINRA.
A firm that is expecting to take its shares public has recently hired a new employee
to assist in selling shares to investors. According to the Uniform Securities Act,
which of the following statements is TRUE? - CORRECT ANSWER - The
employee would be required to register in any state in which he solicits investors
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, In this question, the employee is considered an agent of the issuer. Since the
stock is going to be sold publicly, the shares are required to be registered
along with the employees of the issuer selling them. There are situations in
which employees may be exempt from registration (e.g., engaged in exempt
transactions) however, registration is generally required if shares are being
sold to the public. (
To cut costs, a broker-dealer hires some college interns. The firm allows the interns
to make calls to potential clients to market investment opportunities in stocks,
bonds, and mutual funds. This action would be: - CORRECT ANSWER -
Acceptable if the interns are registered
Since the interns are attempting to effect transactions, they must be
registered. There is no requirement that an agent of a broker-dealer have a
college degree. If they are properly registered, any employees of a broker-
dealer may solicit securities transactions.
An agent of a broker-dealer has written an electronic marketing piece that
recommends the purchase of a new investment company which is being offered by
his firm. He wants to send it by e-mail to 40 non-institutional clients. If the product
is suitable for each client who's on the agent's distribution list, which of the
following statements is TRUE? - CORRECT ANSWER - The content of the e-
mail is not required to be filed with the Administrator because the securities are
federal covered.
Advertisements, including standardized emails, are generally required to be
filed with the state Administrator before they're used. However,
advertisements for exempt securities and securities that are sold in exempt
transactions are not required to be filed. Since registered investment
companies are federal covered and exempt from registration with the state
Administrator, the agent's email is not required to be filed. (18242)
Under the Uniform Securities Act, all of the following meet the definition of an
agent, EXCEPT an individual who: - CORRECT ANSWER - Represents an issuer
in effecting exempt transactions
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COMPLETE QUESTIONS AND ANSWERS
WITH VERIFIED SOLUTIONS LATEST
UPDATE 2025/2026
Fred works for Lasker Securities and is holding an investment seminar in
Connecticut. Fred has sent 100 invitations to people located in New York. Since
his firm has no place of business in New York, he has the responses returned to his
office in Connecticut. Which TWO of the following statements are TRUE?
Lasker Securities would not need to be registered as a broker-dealer in New York
if it has no place of business in New York, and the seminar is to be held in
Connecticut.
Lasker Securities would need to be registered as a broker-dealer in New York,
since it is conducting business in the state.
Fred would need to register in the state of New York as an agent, since he is doing
business within the state.
Fred would not need to be registered as an agent in New York, but must be
registered in Connecticut, since the seminar will take place in Connecticut. -
CORRECT ANSWER - II and III
Lasker is conducting business in the state of New York if its agents solicit
securities business within that state, even though the broker-dealer has no
place of business within the state. Sending invitations to attend an investment
seminar is considered doing business. Fred must be registered as an agent in
both states since he is acting on behalf of the broker-dealer in the solicitation
of securities business in New York, and conducting an investment seminar in
Connecticut.
Which of the following statements is TRUE concerning the posting of a bond by a
broker-dealer? - CORRECT ANSWER - There is no bond requirement if the
1|Page
,broker-dealer does not have custody or discretionary authority over client funds or
securities
The Administrator may require broker-dealers to post bonds if they have custody
of or discretionary authority over client funds or securities. The bond may be
waived if the broker-dealer's net capital exceeds a specified amount. The
Administrator may determine this amount.
A soon-to-be-registered agent may take which of the following actions?
Accept unsolicited orders
Invite prospective clients to seminars
Provide research reports to other agents for use with their clients
Cold-call potential clients and provide quotes - CORRECT ANSWER - II and III
only
A broker-dealer may not allow an unregistered individual to act as an agent unless
the agent is exempt. The soon-to-be-registered agent in this scenario may not
accept orders, solicited or unsolicited, be compensated based on sales, or cold-call
clients. Inviting clients to seminars and providing research to other agents are not
considered activities associated with an agent.
What form is required when registering as a broker-dealer? - CORRECT
ANSWER - Form BD
Form BD is the Uniform Application for Broker-Dealer Registration, which is filed
with the SEC, SROs that have jurisdiction, and the appropriate states, through the
Central Registration Depository (CRD) operated by FINRA.
A firm that is expecting to take its shares public has recently hired a new employee
to assist in selling shares to investors. According to the Uniform Securities Act,
which of the following statements is TRUE? - CORRECT ANSWER - The
employee would be required to register in any state in which he solicits investors
2|Page
, In this question, the employee is considered an agent of the issuer. Since the
stock is going to be sold publicly, the shares are required to be registered
along with the employees of the issuer selling them. There are situations in
which employees may be exempt from registration (e.g., engaged in exempt
transactions) however, registration is generally required if shares are being
sold to the public. (
To cut costs, a broker-dealer hires some college interns. The firm allows the interns
to make calls to potential clients to market investment opportunities in stocks,
bonds, and mutual funds. This action would be: - CORRECT ANSWER -
Acceptable if the interns are registered
Since the interns are attempting to effect transactions, they must be
registered. There is no requirement that an agent of a broker-dealer have a
college degree. If they are properly registered, any employees of a broker-
dealer may solicit securities transactions.
An agent of a broker-dealer has written an electronic marketing piece that
recommends the purchase of a new investment company which is being offered by
his firm. He wants to send it by e-mail to 40 non-institutional clients. If the product
is suitable for each client who's on the agent's distribution list, which of the
following statements is TRUE? - CORRECT ANSWER - The content of the e-
mail is not required to be filed with the Administrator because the securities are
federal covered.
Advertisements, including standardized emails, are generally required to be
filed with the state Administrator before they're used. However,
advertisements for exempt securities and securities that are sold in exempt
transactions are not required to be filed. Since registered investment
companies are federal covered and exempt from registration with the state
Administrator, the agent's email is not required to be filed. (18242)
Under the Uniform Securities Act, all of the following meet the definition of an
agent, EXCEPT an individual who: - CORRECT ANSWER - Represents an issuer
in effecting exempt transactions
3|Page
