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



3
mm/
mm76

, In mmorder mmto mmbe mmoflcially mmconsidered mma mmcomplaint, mmthe mmcomplaint mmshould mmbe mmput
mmin mmwriting. mmThis mmmandates mman mmappropriate mmresponse mmfrom mmthe mmmember mmfirm.


5. A m m Regulation m m D m m offering m m may m m be m m sold m m to m m a
m m maximum m m of mmANS mm>>




A) 15 mmnonaccredited mminvestors


B) 15 mmaccredited mminvestors


C) 35 mmnonaccredited mminvestors


D) 35 mmaccredited mminvestors mmANS mm>> m m C) mm35 mmnonaccredited mminvestors




A mmRegulation mmD mm(private mmplacement) mmottering mmmay mmbe mmsold mmto mma
mmmaximum mmof mm35 mmnonaccredited mminvestors. mmThere mmis mmno mmlimit mmon mmthe
mmnumber mmof mmaccredited mminvestors. mmAn mmindividual mmwill mmbe mmconsidered mman mmaccredited
mminvestor mmif mmhe mmhas mma mmnet mmworth


of mm$1,000,000 mmor mmhas mmhad mm$200,000 mm($300,000 mmfor mma mmmarried mmcouple) mmof mmincom
mmfor mmthe mmprevious mmtwo mmyears mmwith mman mmanticipation mmof mmcontinued mmearnings mmat
mmthe mmsame mmor mma mmgreater mmlevel.


6. A m m fee-based mmaccount mmis mmmost m msuitable mm for
m m customers mmwho mmANS mm>>

4
mm/
mm76