STC SERIES 66 CORE EXAM MANUAL UPDATED QUESTIONS
AND ANSWERS GRADED A+
✔✔Yes - ✔✔Does SIPC cover losses incurred form the insolvency of a BD?
✔✔ADV parts 1 and 2 - ✔✔which parts of ADV does an IA registering with the SEC file
✔✔No - ✔✔can an IA receive a fee for using discretion?
✔✔Yes - ✔✔can an IA with full discretion withdraw securities?
✔✔Yes - ✔✔if an IA deals exclusively with insurance companies, are they exempt from
SEC
✔✔Yes - ✔✔does blue sky apply to states only?
✔✔Yes - ✔✔are variable annuities more expensive to have than mutual funds?
✔✔place funds in a qualified default investment alternative - ✔✔If an ERISA plan
participant fails to specify how her savings are invested, the plan sponsor must
✔✔Yes - ✔✔is an LLC able to raise an unlimited amount of capital?
✔✔inflationary risk - ✔✔treasury zero coupon bonds with long maturities are subject to
which type of risk?
a. reinvestment
b. market risk
c. liquidity risk
d. inflationary risk
✔✔No - ✔✔Are current interest rates a factor when making recommendations to a client
with long term investment objective?
✔✔Yes - ✔✔Do emails possibly need to include additional disclosures that are not
included in written communications?
✔✔If registered in more than 15 states, and they register with SEC. If less than 15
states, they withdraw from SEC registration using form ADV W. - ✔✔What constitutes a
multi state adviser and do they need to register with the SEC?
✔✔No - ✔✔Is investing directly in employers securities an acceptable qualified
investment alternative (QDIA)?
, ✔✔Long term capital gain - ✔✔If a client buys a mutual fund six months ago and they
distribute a long term capital gain, is the investor taxed on short or long term?
✔✔File form ADV within 90 days of fiscal year end - ✔✔Annual renewal for federal
covered adviser?
✔✔File form ADV with state Administrator within 90 days of calendar year end -
✔✔Annual renewal for state registered adviser?
✔✔yes - ✔✔Is the investor taxed annually for zero coupon bonds?
✔✔Yes - ✔✔Are testimonials allowed provided the content is not misleading and
appropriate disclosures are made?
✔✔It's balance sheet, client ledger, and list of all customer owned securities and non
segregated funds - ✔✔if an IA violates the net capital rule, the Administrator may
require the adviser to provide what
✔✔No - ✔✔Is TOD a joint ownership?
✔✔Yes - ✔✔Do variable life insurance policies have a non guaranteed surrender
value?
✔✔It is not exempt - ✔✔Is this an exempt transaction? A non-issuer transaction of a
security that's regularly quoted on the OTC market
✔✔D - ✔✔David has annual income of 482,000 and is contributing the maximum
allowable amount to his 401k. if he wants to fund another retirement account, which of
the following is the MOST suitable account?
a. roth ira
b. education ira
c. traditional ira
d. non-deductible ira
✔✔balance sheet - ✔✔is retained earnings included on balance sheet or income
statement?
✔✔Taxable to the trust, not the grantor - ✔✔how is income taxed in an irrevocable
trust?
✔✔Yes - ✔✔do the owners have to be married in community property with rights of
survivorship?
AND ANSWERS GRADED A+
✔✔Yes - ✔✔Does SIPC cover losses incurred form the insolvency of a BD?
✔✔ADV parts 1 and 2 - ✔✔which parts of ADV does an IA registering with the SEC file
✔✔No - ✔✔can an IA receive a fee for using discretion?
✔✔Yes - ✔✔can an IA with full discretion withdraw securities?
✔✔Yes - ✔✔if an IA deals exclusively with insurance companies, are they exempt from
SEC
✔✔Yes - ✔✔does blue sky apply to states only?
✔✔Yes - ✔✔are variable annuities more expensive to have than mutual funds?
✔✔place funds in a qualified default investment alternative - ✔✔If an ERISA plan
participant fails to specify how her savings are invested, the plan sponsor must
✔✔Yes - ✔✔is an LLC able to raise an unlimited amount of capital?
✔✔inflationary risk - ✔✔treasury zero coupon bonds with long maturities are subject to
which type of risk?
a. reinvestment
b. market risk
c. liquidity risk
d. inflationary risk
✔✔No - ✔✔Are current interest rates a factor when making recommendations to a client
with long term investment objective?
✔✔Yes - ✔✔Do emails possibly need to include additional disclosures that are not
included in written communications?
✔✔If registered in more than 15 states, and they register with SEC. If less than 15
states, they withdraw from SEC registration using form ADV W. - ✔✔What constitutes a
multi state adviser and do they need to register with the SEC?
✔✔No - ✔✔Is investing directly in employers securities an acceptable qualified
investment alternative (QDIA)?
, ✔✔Long term capital gain - ✔✔If a client buys a mutual fund six months ago and they
distribute a long term capital gain, is the investor taxed on short or long term?
✔✔File form ADV within 90 days of fiscal year end - ✔✔Annual renewal for federal
covered adviser?
✔✔File form ADV with state Administrator within 90 days of calendar year end -
✔✔Annual renewal for state registered adviser?
✔✔yes - ✔✔Is the investor taxed annually for zero coupon bonds?
✔✔Yes - ✔✔Are testimonials allowed provided the content is not misleading and
appropriate disclosures are made?
✔✔It's balance sheet, client ledger, and list of all customer owned securities and non
segregated funds - ✔✔if an IA violates the net capital rule, the Administrator may
require the adviser to provide what
✔✔No - ✔✔Is TOD a joint ownership?
✔✔Yes - ✔✔Do variable life insurance policies have a non guaranteed surrender
value?
✔✔It is not exempt - ✔✔Is this an exempt transaction? A non-issuer transaction of a
security that's regularly quoted on the OTC market
✔✔D - ✔✔David has annual income of 482,000 and is contributing the maximum
allowable amount to his 401k. if he wants to fund another retirement account, which of
the following is the MOST suitable account?
a. roth ira
b. education ira
c. traditional ira
d. non-deductible ira
✔✔balance sheet - ✔✔is retained earnings included on balance sheet or income
statement?
✔✔Taxable to the trust, not the grantor - ✔✔how is income taxed in an irrevocable
trust?
✔✔Yes - ✔✔do the owners have to be married in community property with rights of
survivorship?
