SERIES 6 - STC GREENLIGHT EXAM WITH RATIONALES 2025 100% CORRECT ANSWERS

SERIES 6 - STC GREENLIGHT EXAM WITH RATIONALES
2025 100% CORRECT ANSWERS



1. An investor asks a registered representative to underline the most important
facts found in a preliminary prospectus. The registered representative ANS >>


A) May not do this since it violates federal securities laws


B) May do this with the approval of a principal at the firm


C) May do this with the approval of FINRA


D) May do this without restrictions or approvals ANS >> A) May not do this since it violates
federal securities laws


Once a prospectus is filed with the SEC, it may not be amended in any way.


2. Listed below are the net asset value and offer prices of two investment
companies


Net Asset Value


Fund A - $9.20
Fund B - $12.50
Offer Price ANS >>



,Fund A - $10.00
Fund B- $12.00


Based upon the information shown above, you can determine that ANS >>




A) Both funds are open-end


B) Both funds are closed-end


C) A is closed-end and B is open-end


D) B is definitely closed-end and A is probably open-end ANS >> D) B is definitely closed-
end and A is probably open-end


When the net asset value is higher than the ottering price, the fund definitely is closed-end. Closed-end funds have a
price determined by supply and demand, and their prices may be more or less than the net asset value per share, while
open-end funds are prohibited from ever selling their shares for less than the net asset value. Thus Fund B, which has
an ottering price less than its net asset value, must be a closed-end fund, while Fund A could be either.


3. Cash dividends declared by a corporation ANS >>




A) Must be approved for payment by the shareholders






,B) Must be approved for payment by the board of directors


C) Are taxed as capital gains


D) Are not taxed ANS >> B) Must be approved for payment by the board of directors




Cash dividends declared by a corporation must be approved by the corporation's board of directors. Shareholder
approval is not needed to declare a cash dividend, although a company must obtain shareholder approval for a stock
split.


Any cash dividends paid to shareholders are taxed as ordinary income in the year received, not capital gains.


4. A customer calls to lodge a complaint against a registered representative (RR).
The customer should be advised to ANS >>


A) Call FINRA


B) Call the RR


C) Call the appropriate principal


D) Put the complaint in writing ANS >> D) Put the complaint in writing



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, In order to be oflcially considered a complaint, the complaint should be put in writing. This mandates an appropriate
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response from the member firm.
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5. A Regulation D offering may be sold to a maximum of ANS
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A) 15 nonaccredited investors
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B) 15 accredited investors
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C) 35 nonaccredited investors
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D) 35 accredited investors ANS >> C) 35 nonaccredited investors
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A Regulation D (private placement) ottering may be sold to a maximum of 35 nonaccredited investors. There is no limit on th
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number of accredited investors. An individual will be considered an accredited investor if he has a net worth
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of $1,000,000 or has had $200,000 ($300,000 for a married couple) of income for the previous two years with an
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anticipation of continued earnings at the same or a greater level.
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6. A fee-based account is most suitable for customers who ANS
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A) Have discretionary accounts m m




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