STC SERIES 66 PRACTICE SOLUTION TEST
2026 COMPLETE QUESTIONS AND
ANSWERS GRADED A+
●● May an IA use testimonials in its promotional material?
Answer: No. IA's may not use testimonials in promotional material.
●● True or False: Securities that are listed on the NYSE are exempt
from state registration.
Answer: True. Securities that are listed on the NYSE are exempt from
state registration.
●● True or False: A trade of unregistered, non-exempt securities
between two BDs is a violation of the USA.
Answer: False. A trade of unregistered, non-exempt securities between
two BDs is a violation of the USA IS an exempt transaction.
●● Does a solicitor for an IA provide securities recommendations?
Answer: No. Solicitors only solicit new clients; they do not recommend
or approve transactions.
●● May the administrator set net capital requirements for BDs?
Answer: Yes. The administrator may set net capital requirements for BD
,●● What form is used to notify administrators that an IA is maintaining
custody of client assets?
Answer: Form ADV
●● The ____________________________ is an organization consisting
of state administrators.
Answer: The North American Securities Administrators Association
(NASAA) is an organization consisting of state Administrators.
●● What is the three-pronged test for determining whether a firm meets
the IA definition?
Answer: ABC. A = advice / analyses, B=business, C= compensation
●● An intrastate offering use which method of state securities
registration?
Answer: Qualification
●● Does the de minimis exemption apply to BDs that have no place of
business in a state?
Answer: No. The de minimis exemption only applies to IAs and IARs.
●● What criteria must be met for commercial paper to be exempt from
registration?
,Answer: A 270-day maximum life, minimum denomination of $50,000,
rated in one of the top-three categories according to an NRSRO.
●● What is form ADV-E?
Answer: Form filed by an independent public accountant after auditing
the records of an IA maintaining custody of client assets.
●● IAs file their applications electronically through the ____________
Answer: IAs file their applications electronically through the Investment
Adviser Registration Depository (IARD)
●● Is Jim an agent if he works in ABC's retirement dept. and, once a
year, places ABC stock in employees' accounts?
Answer: No, Jim is representing an issuer in an exempt transaction.
●● A publicly traded corporation has 20,000,000 shares of common
stock outstanding and an investor buys 1,400,000 of the shares in the
open market. Which of the following forms is the investor required to
file with the SEC?
Answer: Form 13D
Any investor that acquires more than 5% of the common stock of a
reporting company is required to file Form 13D with the SEC. Since the
client has acquired 7% of the 20,000,000 outstanding common shares
($1.4 million ÷ $20 million), he is subject to the filing requirement.
Form 13F is filed by institutional investment managers that exercise
, investment discretion over $100 million or more in equity securities.
Form 144 is filed when an investor intends to sell restricted (private
placement) stock or when an insider intends to sell control stock.
●● Under Regulation D of the Securities Act of 1933, accredited
investors include:
Accountants
Insurance companies
Any senior officer of a publicly traded company
Individuals with a net worth of one million dollars or more
Answer: II and IV only
No single profession is specified in the definition of an accredited
investor. Senior officers are included if they are senior officers of the
issuer. Institutional investors, such as insurance companies, are specified
in the regulation. A person with annual income of $200,000, or net worth
of $1 million, is also considered accredited.
●● When a client purchases mutual fund shares from a broker-dealer,
she receives a summary prospectus. When will the broker-dealer send
the client a statutory (final) prospectus?
Answer: After the purchase has been completed, if requested
According to the Investment Company Act of 1940, a client who
purchases mutual fund shares must receive a statutory prospectus after
the purchase has been completed. Therefore, if a summary prospectus is
delivered first, a client must receive or be given access to the statutory
prospectus, if requested.
2026 COMPLETE QUESTIONS AND
ANSWERS GRADED A+
●● May an IA use testimonials in its promotional material?
Answer: No. IA's may not use testimonials in promotional material.
●● True or False: Securities that are listed on the NYSE are exempt
from state registration.
Answer: True. Securities that are listed on the NYSE are exempt from
state registration.
●● True or False: A trade of unregistered, non-exempt securities
between two BDs is a violation of the USA.
Answer: False. A trade of unregistered, non-exempt securities between
two BDs is a violation of the USA IS an exempt transaction.
●● Does a solicitor for an IA provide securities recommendations?
Answer: No. Solicitors only solicit new clients; they do not recommend
or approve transactions.
●● May the administrator set net capital requirements for BDs?
Answer: Yes. The administrator may set net capital requirements for BD
,●● What form is used to notify administrators that an IA is maintaining
custody of client assets?
Answer: Form ADV
●● The ____________________________ is an organization consisting
of state administrators.
Answer: The North American Securities Administrators Association
(NASAA) is an organization consisting of state Administrators.
●● What is the three-pronged test for determining whether a firm meets
the IA definition?
Answer: ABC. A = advice / analyses, B=business, C= compensation
●● An intrastate offering use which method of state securities
registration?
Answer: Qualification
●● Does the de minimis exemption apply to BDs that have no place of
business in a state?
Answer: No. The de minimis exemption only applies to IAs and IARs.
●● What criteria must be met for commercial paper to be exempt from
registration?
,Answer: A 270-day maximum life, minimum denomination of $50,000,
rated in one of the top-three categories according to an NRSRO.
●● What is form ADV-E?
Answer: Form filed by an independent public accountant after auditing
the records of an IA maintaining custody of client assets.
●● IAs file their applications electronically through the ____________
Answer: IAs file their applications electronically through the Investment
Adviser Registration Depository (IARD)
●● Is Jim an agent if he works in ABC's retirement dept. and, once a
year, places ABC stock in employees' accounts?
Answer: No, Jim is representing an issuer in an exempt transaction.
●● A publicly traded corporation has 20,000,000 shares of common
stock outstanding and an investor buys 1,400,000 of the shares in the
open market. Which of the following forms is the investor required to
file with the SEC?
Answer: Form 13D
Any investor that acquires more than 5% of the common stock of a
reporting company is required to file Form 13D with the SEC. Since the
client has acquired 7% of the 20,000,000 outstanding common shares
($1.4 million ÷ $20 million), he is subject to the filing requirement.
Form 13F is filed by institutional investment managers that exercise
, investment discretion over $100 million or more in equity securities.
Form 144 is filed when an investor intends to sell restricted (private
placement) stock or when an insider intends to sell control stock.
●● Under Regulation D of the Securities Act of 1933, accredited
investors include:
Accountants
Insurance companies
Any senior officer of a publicly traded company
Individuals with a net worth of one million dollars or more
Answer: II and IV only
No single profession is specified in the definition of an accredited
investor. Senior officers are included if they are senior officers of the
issuer. Institutional investors, such as insurance companies, are specified
in the regulation. A person with annual income of $200,000, or net worth
of $1 million, is also considered accredited.
●● When a client purchases mutual fund shares from a broker-dealer,
she receives a summary prospectus. When will the broker-dealer send
the client a statutory (final) prospectus?
Answer: After the purchase has been completed, if requested
According to the Investment Company Act of 1940, a client who
purchases mutual fund shares must receive a statutory prospectus after
the purchase has been completed. Therefore, if a summary prospectus is
delivered first, a client must receive or be given access to the statutory
prospectus, if requested.
