Series 65 STC questions with verified answers

Series 65 STC

Broker (CHAPTER 1 - LAWS, REGULATIONS, AND GUIDELINES OVERVIEW) - correct answer ✔✔A firm is
acting in capacity of a broker when it effects securities transactions on behalf of its clients .In other
works, a broker will locate the other side of the trade



Dealer (CHAPTER 1 - LAWS, REGULATIONS, AND GUIDELINES OVERVIEW) - correct answer ✔✔A dealer
stands ready to take the other side of any transaction - buying for its own inventory with a markdown or
selling from its own inventory charging a markup



Brokerdealer (CHAPTER 1 - LAWS, REGULATIONS, AND GUIDELINES OVERVIEW) - correct answer
✔✔Sales person of broker dealers must be registered agents



Investment Advisor (CHAPTER 1 - LAWS, REGULATIONS, AND GUIDELINES OVERVIEW) - correct answer
✔✔1. Providing Advice about securities

2. Providing these services as a business

3.Receiving Compensation for these services



Investment advisor representative (CHAPTER 1 - LAWS, REGULATIONS, AND GUIDELINES OVERVIEW) -
correct answer ✔✔Makes recommendations or gives advice regarding securities

Manages accounts or portfolios of clients

Determines which recommendations or what advice should be given

Solicits, offers, or negotiates the sale of investment advisory services

Supervises employees who perform any of these functions



Uniform Securities Act (USA) (CHAPTER 1 - LAWS, REGULATIONS, AND GUIDELINES OVERVIEW) - correct
answer ✔✔Model legislation for securities industry regulation at the state level. Each state may adopt
the legislation in its entirety or it may adapt it (within limits) to suit its needs.

, Administrator (CHAPTER 1 - LAWS, REGULATIONS, AND GUIDELINES OVERVIEW) - correct answer ✔✔The
fundamental mission of a state securities regulator is to protect the consumers who purchase securities
or pay for investment advice within the state



North American Securities Administrators Association (NASAA) (CHAPTER 1 - LAWS, REGULATIONS, AND
GUIDELINES OVERVIEW) - correct answer ✔✔s responsible for updating the Uniform Securities Act as
well as maintaining the content of the Series 65 Examination.

-1919



Securities Act of 1933 ('33 Act) (CHAPTER 1 - LAWS, REGULATIONS, AND GUIDELINES OVERVIEW) -
correct answer ✔✔This federal law requires that certain securities be registered with the SEC in order to
be offered or sold to the public. When issuers sell securities, these offerings are often referred to as
primary distributions



Securities Exchange Act of 1934 ('34 Act) (CHAPTER 1 - LAWS, REGULATIONS, AND GUIDELINES
OVERVIEW) - correct answer ✔✔the Securities and Exchange Commission was established and
appointed as the federal regulatory agency with the duty to enforce federal rules and regulations,
including the registration of certain financial professionals.



-Additionally, the '34 Act governs the trading (secondary) markets.



The Investment Advisers Act of 1940 (IA '40 Act) (CHAPTER 1 - LAWS, REGULATIONS, AND GUIDELINES
OVERVIEW) - correct answer ✔✔Many of its concepts have been incorporated in the USA and in the
model rules that NASAA has adopted regarding investment advisers.



The National Securities Markets Improvement Act of 1996 (NSMIA) (CHAPTER 1 - LAWS, REGULATIONS,
AND GUIDELINES OVERVIEW) - correct answer ✔✔Eventually, in 1996, Congress officially enacted the
National Securities Markets Improvement Act (NSMIA) to eliminate the duplication of state and federal
securities regulation.



exempt from formal state registration (CHAPTER 1 - LAWS, REGULATIONS, AND GUIDELINES OVERVIEW) -
correct answer ✔✔Securities listed on the U.S. exchanges (NYSE, Nasdaq, etc.)

Certain Regulation D offerings (private placements)

Municipal securities issued outside the state