Series 66 – Uniform Combined State Law Exam Securities & Investment Products 2

Question 1

Which of the following is TRUE about registration by qualification under the Uniform Securities Act?

Accepted Answer

It is the most comprehensive form of state registration and can stand alone without SEC registration

Answer

Registration by qualification is a full state-level registration that does not depend on SEC registration and is used when other methods are unavailable.

Question 2

Under the USA, which of the following is an example of a 'covered security' that preempts state registration?

Accepted Answer

A security listed on the NYSE

Answer

Securities listed on national exchanges like the NYSE are 'covered securities' under NSMIA and preempt state registration requirements.

Question 3

A variable annuity contract is considered a security and must be sold by a person registered as which of the following?

Accepted Answer

A registered representative or investment adviser representative

Answer

Variable annuities are securities and must be sold by individuals holding appropriate securities licenses, such as a registered representative.

Question 4

Under the Uniform Securities Act, which of the following would be considered an 'offer to sell' a security?

Accepted Answer

A gift of assessable securities

Answer

A gift of assessable securities (which can impose future obligations on the recipient) is considered an offer to sell under the USA.

Question 5

Which of the following is TRUE about exempt securities under the Uniform Securities Act?

Accepted Answer

The exemption applies only to the registration requirement, not to anti-fraud rules

Answer

An exemption from registration does not exempt a security from anti-fraud provisions, which apply to all securities transactions.

Series 66 – Uniform Combined State Law Exam Practice Test

Series 66 – Uniform Combined State Law Exam Practice Test

Series 66 – Uniform Combined State Law Exam Securities & Investment Products 2