Series 6 - STC Final Exam 06 Questions with 100%
Correct Answers
According to Regulation SP, a privacy notice need not
be provided:
A) When a customer opens an account with a broker-
dealer
B) When a customer opens an account with an
investment company
C) When a customer purchases a variable annuity from
an insurance company
D) When a customer purchases a life insurance policy
from an insurance company Correct Answer: D) When a
customer purchases a life insurance policy from an
insurance company
Regulation SP requires broker-dealers, investment
advisers and investment companies registered with the
,SEC, to send privacy notices to customers at the time
the relationship is established. Insurance companies are
not required to provide privacy notices unless the client
is purchasing a variable product. Privacy notices must
be presented in written form.
Exempt securities and offerings are exempt from all of
the following, EXCEPT:
A) Registration requirements
B) Prospectus delivery requirements
C) Antifraud provisions
D) Exempt securities and offerings are exempt from all
provisions of the Securities Act of 1933 Correct Answer:
C) Antifraud provisions
Exempt securities and offerings are exempt from all of
the provisions of the Securities Act of 1933 with the
exception of the antifraud provisions.
,In order to conduct a securities offering under Rule
147A, which of the following conditions must be
satisfied?
A) All offers must be made to only the residents of one
state
B) All offers and sales must be made to only the residents
of one state
C) Offers and sales may be made in any state provided
the issuer is located in a different state than where it was
incorporated
D) Offers may be made in any state, but sales may only
take place in one state Correct Answer: D) Offers may
be made in any state, but sales may only take place in
one state
Companies that are selling new securities are typically
required to register their securities with the SEC.
, However, under Rule 147 and Rule 147A, if a company is
conducting an offering and only selling its securities to its
state residents, the offering is exempt from registration.
Rule 147A allows for multi-state offers (not sales), which
means that issuers are permitted to use general
solicitation and publicly available websites to locate
potential in-state investors. Although offers are able to
be made outside of the state, all sales must still be
limited to in-state residents. This differs from Rule 147
which dictates that all offers and sales must be limited to
residents of one state.
XYZ Mutual Fund, an open-end investment company,
has an NAV of $20 and a public offering price of $21.40.
The prospectus states that the sales charge for
purchases of fund shares of $25,000 through $49,999 is
4%. Approximately how many shares can the customer
buy for $35,000? Correct Answer: 1,680 shares
To compute the number of shares that can be
purchased, first determine how much of the investment
will go to the sales charge. This amount is $1,400 ($35,000
Correct Answers
According to Regulation SP, a privacy notice need not
be provided:
A) When a customer opens an account with a broker-
dealer
B) When a customer opens an account with an
investment company
C) When a customer purchases a variable annuity from
an insurance company
D) When a customer purchases a life insurance policy
from an insurance company Correct Answer: D) When a
customer purchases a life insurance policy from an
insurance company
Regulation SP requires broker-dealers, investment
advisers and investment companies registered with the
,SEC, to send privacy notices to customers at the time
the relationship is established. Insurance companies are
not required to provide privacy notices unless the client
is purchasing a variable product. Privacy notices must
be presented in written form.
Exempt securities and offerings are exempt from all of
the following, EXCEPT:
A) Registration requirements
B) Prospectus delivery requirements
C) Antifraud provisions
D) Exempt securities and offerings are exempt from all
provisions of the Securities Act of 1933 Correct Answer:
C) Antifraud provisions
Exempt securities and offerings are exempt from all of
the provisions of the Securities Act of 1933 with the
exception of the antifraud provisions.
,In order to conduct a securities offering under Rule
147A, which of the following conditions must be
satisfied?
A) All offers must be made to only the residents of one
state
B) All offers and sales must be made to only the residents
of one state
C) Offers and sales may be made in any state provided
the issuer is located in a different state than where it was
incorporated
D) Offers may be made in any state, but sales may only
take place in one state Correct Answer: D) Offers may
be made in any state, but sales may only take place in
one state
Companies that are selling new securities are typically
required to register their securities with the SEC.
, However, under Rule 147 and Rule 147A, if a company is
conducting an offering and only selling its securities to its
state residents, the offering is exempt from registration.
Rule 147A allows for multi-state offers (not sales), which
means that issuers are permitted to use general
solicitation and publicly available websites to locate
potential in-state investors. Although offers are able to
be made outside of the state, all sales must still be
limited to in-state residents. This differs from Rule 147
which dictates that all offers and sales must be limited to
residents of one state.
XYZ Mutual Fund, an open-end investment company,
has an NAV of $20 and a public offering price of $21.40.
The prospectus states that the sales charge for
purchases of fund shares of $25,000 through $49,999 is
4%. Approximately how many shares can the customer
buy for $35,000? Correct Answer: 1,680 shares
To compute the number of shares that can be
purchased, first determine how much of the investment
will go to the sales charge. This amount is $1,400 ($35,000
