Series 66 Practice Exam 1 questions and
answers with solutions
Passport and current address - ANSWER According to AML procedures, which TWO of the
following details is a broker-dealer required to obtain when opening an account for a non-U.S.
person?
Current employer
Passport number and issuing country
Current address
Telephone number
- ANSWER Which non-qualified deferred compensation plan can be offered to managers of a
government agency? A. 401K B. 457 C. 403B D. 401A
B. Individuals who attempt to find potential investors for private companies - ANSWER Which of
the following BEST defines the term "finder" in securities markets? A. A broker-dealer that
clears and settles stock market transactions. B. Individuals who attempt to find potential
investors for private companies. C. An attorney who refers illegal activity to the state
Administrator(s). D. Unregistered individuals who solicit investment advisory services.
B. No later than 30 days after the end of each calendar quarter - ANSWER According to the
Investment Advisers Act of 1940, when must an access person submit a transaction report? A.
No later than 10 days after the end of the calendar quarter in which the transaction was
effected B. No later than 30 days after the end of each calendar quarter C. Within 90 days of the
end of the adviser's fiscal year D. Promptly
A. Some digital assets are securities. - ANSWER Which of the following statements is TRUE
regarding digital assets? A. Some digital assets are securities. B. Digital assets are exempt from
registration with state Administrator(s). C. All digital assets are securities. D. Digital assets are
exempt from the anti-fraud provisions of the USA.
, a. Low price earnings ratios - ANSWER Value investors would be interested in companies that
have: a. Low price earnings ratios B. High price to book value C. High price earnings ratio D. Low
dividend yields
C. A Rule 147 offering - ANSWER Under the Uniform Securities Act, which of the following
transactions is NOT exempt from state registration? A. An isolated, non-issuer transaction B. The
sale of securities by a sheriff C. A Rule 147 offering D. A transaction executed on a national
securities exchange
D. Must receive permission from his broker-dealer to effect the transaction - ANSWER In order
to effect a private securities transaction, an agent of a broker-dealer: A. Cannot receive
compensation for the transaction B. Must receive permission from the state Administrator C.
Only needs to be registered in the state in which an investor lives D. Must receive permission
from his broker-dealer to effect the transaction
D. Not considered an agent since she is not involved in sales or trading - ANSWER Susan is a
high-ranking official in the Comptroller's Office of Zanzibar Securities. Her title is Executive Vice
President. Under the Uniform Securities Act, Susan is: A. Considered an agent but would not
need to pass a qualifying exam B. An agent since all officers of a securities firm are considered
agents C.Not an agent but could accept unsolicited orders D. Not considered an agent since she
is not involved in sales or trading
D. These securities have higher management fees than hedge funds - ANSWER A client is
considering purchasing a fund of hedge funds. Which of the following statements is TRUE
concerning this investment? A. Funds of hedge funds may be purchased only by investors who
meet standards that are established by the SEC. B. These securities must be held for a minimum
of six months. C. These securities will outperform traditional mutual funds over time. D. These
securities have higher management fees than hedge funds.
D. Before the client signs the advisory contract which gives discretionary authority to the
advisory firm - ANSWER When is the latest time that a brochure can be provided to a new
advisory client? A. At the end of the adviser's fiscal year B. 48 hours before the first securities
answers with solutions
Passport and current address - ANSWER According to AML procedures, which TWO of the
following details is a broker-dealer required to obtain when opening an account for a non-U.S.
person?
Current employer
Passport number and issuing country
Current address
Telephone number
- ANSWER Which non-qualified deferred compensation plan can be offered to managers of a
government agency? A. 401K B. 457 C. 403B D. 401A
B. Individuals who attempt to find potential investors for private companies - ANSWER Which of
the following BEST defines the term "finder" in securities markets? A. A broker-dealer that
clears and settles stock market transactions. B. Individuals who attempt to find potential
investors for private companies. C. An attorney who refers illegal activity to the state
Administrator(s). D. Unregistered individuals who solicit investment advisory services.
B. No later than 30 days after the end of each calendar quarter - ANSWER According to the
Investment Advisers Act of 1940, when must an access person submit a transaction report? A.
No later than 10 days after the end of the calendar quarter in which the transaction was
effected B. No later than 30 days after the end of each calendar quarter C. Within 90 days of the
end of the adviser's fiscal year D. Promptly
A. Some digital assets are securities. - ANSWER Which of the following statements is TRUE
regarding digital assets? A. Some digital assets are securities. B. Digital assets are exempt from
registration with state Administrator(s). C. All digital assets are securities. D. Digital assets are
exempt from the anti-fraud provisions of the USA.
, a. Low price earnings ratios - ANSWER Value investors would be interested in companies that
have: a. Low price earnings ratios B. High price to book value C. High price earnings ratio D. Low
dividend yields
C. A Rule 147 offering - ANSWER Under the Uniform Securities Act, which of the following
transactions is NOT exempt from state registration? A. An isolated, non-issuer transaction B. The
sale of securities by a sheriff C. A Rule 147 offering D. A transaction executed on a national
securities exchange
D. Must receive permission from his broker-dealer to effect the transaction - ANSWER In order
to effect a private securities transaction, an agent of a broker-dealer: A. Cannot receive
compensation for the transaction B. Must receive permission from the state Administrator C.
Only needs to be registered in the state in which an investor lives D. Must receive permission
from his broker-dealer to effect the transaction
D. Not considered an agent since she is not involved in sales or trading - ANSWER Susan is a
high-ranking official in the Comptroller's Office of Zanzibar Securities. Her title is Executive Vice
President. Under the Uniform Securities Act, Susan is: A. Considered an agent but would not
need to pass a qualifying exam B. An agent since all officers of a securities firm are considered
agents C.Not an agent but could accept unsolicited orders D. Not considered an agent since she
is not involved in sales or trading
D. These securities have higher management fees than hedge funds - ANSWER A client is
considering purchasing a fund of hedge funds. Which of the following statements is TRUE
concerning this investment? A. Funds of hedge funds may be purchased only by investors who
meet standards that are established by the SEC. B. These securities must be held for a minimum
of six months. C. These securities will outperform traditional mutual funds over time. D. These
securities have higher management fees than hedge funds.
D. Before the client signs the advisory contract which gives discretionary authority to the
advisory firm - ANSWER When is the latest time that a brochure can be provided to a new
advisory client? A. At the end of the adviser's fiscal year B. 48 hours before the first securities
