STC Series 66 EXAM STUDY GUIDE
2026 COMPLETE QUESTIONS WITH
CORRECT DETAILED ANSWERS ||
100% GUARANTEED PASS
<RECENT VERSION>
1. Under the Uniform Securities Act, which of the following securities is/are
exempt? - ANSWER ✔ Bonds issued by a Canadian province
Illinois General Obligation bond
Insurance company common stock
Securities issued by a non-for-profit educational association
2. Under the Uniform Securities Act, which of the following statements is
TRUE concerning the registration of an investment advisor? - ANSWER ✔
An investment advisor who does not maintain an office in a state who has
seven clients who are residents of that state is not exempt from registration
3. Which of the following statements is TRUE regarding surety bonds? -
ANSWER ✔ The administrator may allow a deposit of cash or securities
4. A broker-dealer registered in Georgia sells a security listed on Nasdaq. The
transaction takes place in the secondary market between two clients who are
Georgia residents. According to the USA, which of the following statements
, is TRUE? - ANSWER ✔ The security is not required to be registered in
Georgia
5. Under the Uniform Securities Act, an employee of a municipal issuer selling
securities to the public is considered: - ANSWER ✔ Not an agent
6. A brokerage firm executes an existing customer's order by locating a contra-
party and charges the client a commission for executing the trade. In what
capacity was the firm acting? - ANSWER ✔ Broker
7. Which of the following statements are TRUE concerning certain federal
covered securities? - ANSWER ✔ -The Administrator may require the issuer
to pay a filing fee
-The Administrator may bring enforcement action if fraud is involved
-The Administrator may require the issuer to file a consent to service of
process
8. Which of the following is a measure of non-systematic risk?
A. Alpha
B. Theta
C. Gamma
D. Beta - ANSWER ✔ A. Alpha
Alpha is a way to measure risk that's association with a single investment,
which is better known as non-systematic risk. On the other hand, systematic
, risk is associated with all investments and is measured by beta. Gamma and
theta are both risk measurements, but they're specific to option contracts. (
9. When are fees assessed on no-load mutual fund shares?
A. Annually
B. When the shares are redeemed
C. Quarterly
D. When the shares are purchased - ANSWER ✔ A. Annually
No-load funds cannot assess a front-end or back-end sales charge. This
means that investors don't pay sales charges when they purchase or redeem
shares. However, no-load funds may charge a 12b-1 fee up to 0.25% of the
assets under management. In most cases, 12b-1 fees are assessed annually,
which is when investors must pay them.
10.Which of the following statements regarding the differences between an
annual rebalancing strategy and a buy-and-hold strategy over a 30-year
period is FALSE?
A. The buy and hold strategy is easier to manage than a rebalancing
strategy
B. The tax and transactions costs will be lower with a buy and hold
strategy
C. The risk in a buy and hold strategy portfolio will match the investor's
risk tolerance
, D. The equity portion in a buy and hold portfolio could grow in relation
to the fixed-income portion, whereas a rebalanced portfolio will
remain balanced every year - ANSWER ✔ C. The risk in a buy and
hold strategy portfolio will match the investor's risk tolerance
The risk levels in a buy and hold portfolio will rise and fall, while a
rebalanced portfolio will be adjusted periodically to meet the investor's risk
tolerance. Rebalanced portfolios will also attempt to maintain the percentage
of equity and debt in the portfolio, while buy and hold portfolios will allow
the percentages to drift. One of the advantages of a buy and hold strategy is
that transaction and tax expenses are minimized since there is generally no
continuous buying and selling.
11.Which of the following is TRUE of a Qualified Domestic Relations Order
(QDRO)?
A. QDRO is a court order that provides an alternative payee the right to
receive all or a portion of the benefits that are payable to a participant
under a qualified retirement plan
B. A QDRO is a court order that requires one person involved in a
divorce to provide for the payment of alimony or child support
C. A QDRO is a court order that divides all jointly held property in the
event of a divorce
D. A QDRO is a court order that provides an alternative payee the right
to receive all or a portion of the benefits that are payable to a
participant under a non-qualified retirement plan - ANSWER ✔ A.
2026 COMPLETE QUESTIONS WITH
CORRECT DETAILED ANSWERS ||
100% GUARANTEED PASS
<RECENT VERSION>
1. Under the Uniform Securities Act, which of the following securities is/are
exempt? - ANSWER ✔ Bonds issued by a Canadian province
Illinois General Obligation bond
Insurance company common stock
Securities issued by a non-for-profit educational association
2. Under the Uniform Securities Act, which of the following statements is
TRUE concerning the registration of an investment advisor? - ANSWER ✔
An investment advisor who does not maintain an office in a state who has
seven clients who are residents of that state is not exempt from registration
3. Which of the following statements is TRUE regarding surety bonds? -
ANSWER ✔ The administrator may allow a deposit of cash or securities
4. A broker-dealer registered in Georgia sells a security listed on Nasdaq. The
transaction takes place in the secondary market between two clients who are
Georgia residents. According to the USA, which of the following statements
, is TRUE? - ANSWER ✔ The security is not required to be registered in
Georgia
5. Under the Uniform Securities Act, an employee of a municipal issuer selling
securities to the public is considered: - ANSWER ✔ Not an agent
6. A brokerage firm executes an existing customer's order by locating a contra-
party and charges the client a commission for executing the trade. In what
capacity was the firm acting? - ANSWER ✔ Broker
7. Which of the following statements are TRUE concerning certain federal
covered securities? - ANSWER ✔ -The Administrator may require the issuer
to pay a filing fee
-The Administrator may bring enforcement action if fraud is involved
-The Administrator may require the issuer to file a consent to service of
process
8. Which of the following is a measure of non-systematic risk?
A. Alpha
B. Theta
C. Gamma
D. Beta - ANSWER ✔ A. Alpha
Alpha is a way to measure risk that's association with a single investment,
which is better known as non-systematic risk. On the other hand, systematic
, risk is associated with all investments and is measured by beta. Gamma and
theta are both risk measurements, but they're specific to option contracts. (
9. When are fees assessed on no-load mutual fund shares?
A. Annually
B. When the shares are redeemed
C. Quarterly
D. When the shares are purchased - ANSWER ✔ A. Annually
No-load funds cannot assess a front-end or back-end sales charge. This
means that investors don't pay sales charges when they purchase or redeem
shares. However, no-load funds may charge a 12b-1 fee up to 0.25% of the
assets under management. In most cases, 12b-1 fees are assessed annually,
which is when investors must pay them.
10.Which of the following statements regarding the differences between an
annual rebalancing strategy and a buy-and-hold strategy over a 30-year
period is FALSE?
A. The buy and hold strategy is easier to manage than a rebalancing
strategy
B. The tax and transactions costs will be lower with a buy and hold
strategy
C. The risk in a buy and hold strategy portfolio will match the investor's
risk tolerance
, D. The equity portion in a buy and hold portfolio could grow in relation
to the fixed-income portion, whereas a rebalanced portfolio will
remain balanced every year - ANSWER ✔ C. The risk in a buy and
hold strategy portfolio will match the investor's risk tolerance
The risk levels in a buy and hold portfolio will rise and fall, while a
rebalanced portfolio will be adjusted periodically to meet the investor's risk
tolerance. Rebalanced portfolios will also attempt to maintain the percentage
of equity and debt in the portfolio, while buy and hold portfolios will allow
the percentages to drift. One of the advantages of a buy and hold strategy is
that transaction and tax expenses are minimized since there is generally no
continuous buying and selling.
11.Which of the following is TRUE of a Qualified Domestic Relations Order
(QDRO)?
A. QDRO is a court order that provides an alternative payee the right to
receive all or a portion of the benefits that are payable to a participant
under a qualified retirement plan
B. A QDRO is a court order that requires one person involved in a
divorce to provide for the payment of alimony or child support
C. A QDRO is a court order that divides all jointly held property in the
event of a divorce
D. A QDRO is a court order that provides an alternative payee the right
to receive all or a portion of the benefits that are payable to a
participant under a non-qualified retirement plan - ANSWER ✔ A.
