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

Fixed annuities are insurance products and are excluded from the definition of 'security' under the USA.

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

The Howey Test defines an investment contract (and thus a security) as an investment of money in a common enterprise with profits expected from others' efforts.

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

Securities issued by national banks are exempt from state registration under the USA because they are federally regulated.

Question 4

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

Accepted Answer

An isolated non-issuer transaction

Answer

Isolated non-issuer transactions (such as a one-time private sale between individuals) qualify as exempt transactions under the USA.

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

Corporate stock of a newly formed company is a non-exempt security that must be registered with the state before being offered or sold.

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