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

Question 1

Under the Uniform Securities Act, which of the following is NOT included in the definition of 'security'?

Accepted Answer

Fixed annuity

Answer

Stock

Answer

Variable annuity

Answer

Investment contract

Question 2

Which of the following best describes the Howey Test used to determine whether an instrument is a security?

Accepted Answer

An investment of money in a common enterprise with profits expected solely from the efforts of others

Answer

Any transaction involving the exchange of money for a financial instrument

Answer

Any investment expected to generate a guaranteed return

Answer

A product registered with the SEC or state regulators

Question 3

Which of the following securities is typically EXEMPT from state registration under the Uniform Securities Act?

Accepted Answer

Securities issued by a national bank

Answer

Common stock of a small private company

Answer

A newly issued corporate bond from an unrated company

Answer

Limited partnership interests

Question 4

Under the Uniform Securities Act, which transaction is considered an 'exempt transaction'?

Accepted Answer

An isolated non-issuer transaction

Answer

A public offering to retail investors

Answer

A sale by a broker-dealer to the general public

Answer

A rights offering to existing shareholders of a private company

Question 5

Which of the following investment products is considered a 'non-exempt' security that must be registered under the Uniform Securities Act?

Accepted Answer

Corporate stock of a newly formed company

Answer

US Treasury bonds

Answer

Municipal bonds

Answer

Securities issued by a nonprofit charitable organization

Question 6

Under the Uniform Securities Act, which method of securities registration allows a company to register in multiple states simultaneously using a single federal registration?

Accepted Answer

Registration by coordination

Answer

Registration by qualification

Answer

Registration by filing

Answer

Registration by notation