STC SERIES 66 ACTUAL TEST PAPER 2026
COMPLETE QUESTIONS AND SOLUTIONS
GRADED A+
●● State administrator.
Answer: Uses rules, orders, and laws to enforce the USA
●● North American securities administrators associations.
Answer: Responsible for updating the USA through various NASAA
model rules and statements of policy
●● National securities markets improvement act.
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.
Answer: An individual, corporation, partnership, unincorporated
organization, government or political subdivision of a government, and
certain trusts (any legal entity)
●● Not a person.
,Answer: minors, deceased, mentally incompetent
●● State.
Answer: Any state, territory, or possession of the US, including the
District of Columbia and Puerto Rico
●● Financial firms.
Answer: Broker dealers, agents / registered representatives, investment
advisors, investment advisor representatives
●● Executed transactions for commissions.
Answer: Broker dealers and agents / registered representatives
●● ABC test (advice business compensation).
Answer: Investment advisors and investment advisor representatives
●● Broker-Dealer (BD).
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.
,Answer: The state administrator, FINRA, and the SEC
●● Agents/Registered Representatives.
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.
Answer: must register with state administrator and FINRA
●● Investment Advisor.
Answer: Is the firm (comparable to a broker dealer)
●● Investment advisors must register with.
Answer: The state administrator OR the SEC
●● Investment advisor representative.
Answer: are individuals who work for and give advice on behalf of
registered investment advisers.
●● Investment advisor representatives must register with.
Answer: State administrator
, ●● How Howey test works.
Answer: Investment of money, common enterprise, derived from the
efforts of others, expectation of profits
●● Security.
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.
Answer: -Life Insurance, Endowment policies, Fixed annuities, 4C's:
Commodities, Collectibles, Currencies, Condominiums as a place of
business or residence
●● Viatical Investments.
Answer: -represent the purchase of the rights to the death benefits from
individual life insurance policies
-a policyholder who is ill or in need of cash will sell the rights to the
death benefit from his life insurance policy to a viatical company. They
then resell these interest to investors
-considered a security
●● Registration by Filing (notification) (follow on interstate offering).
COMPLETE QUESTIONS AND SOLUTIONS
GRADED A+
●● State administrator.
Answer: Uses rules, orders, and laws to enforce the USA
●● North American securities administrators associations.
Answer: Responsible for updating the USA through various NASAA
model rules and statements of policy
●● National securities markets improvement act.
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.
Answer: An individual, corporation, partnership, unincorporated
organization, government or political subdivision of a government, and
certain trusts (any legal entity)
●● Not a person.
,Answer: minors, deceased, mentally incompetent
●● State.
Answer: Any state, territory, or possession of the US, including the
District of Columbia and Puerto Rico
●● Financial firms.
Answer: Broker dealers, agents / registered representatives, investment
advisors, investment advisor representatives
●● Executed transactions for commissions.
Answer: Broker dealers and agents / registered representatives
●● ABC test (advice business compensation).
Answer: Investment advisors and investment advisor representatives
●● Broker-Dealer (BD).
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.
,Answer: The state administrator, FINRA, and the SEC
●● Agents/Registered Representatives.
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.
Answer: must register with state administrator and FINRA
●● Investment Advisor.
Answer: Is the firm (comparable to a broker dealer)
●● Investment advisors must register with.
Answer: The state administrator OR the SEC
●● Investment advisor representative.
Answer: are individuals who work for and give advice on behalf of
registered investment advisers.
●● Investment advisor representatives must register with.
Answer: State administrator
, ●● How Howey test works.
Answer: Investment of money, common enterprise, derived from the
efforts of others, expectation of profits
●● Security.
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.
Answer: -Life Insurance, Endowment policies, Fixed annuities, 4C's:
Commodities, Collectibles, Currencies, Condominiums as a place of
business or residence
●● Viatical Investments.
Answer: -represent the purchase of the rights to the death benefits from
individual life insurance policies
-a policyholder who is ill or in need of cash will sell the rights to the
death benefit from his life insurance policy to a viatical company. They
then resell these interest to investors
-considered a security
●● Registration by Filing (notification) (follow on interstate offering).
