Securities & Investment Products Flashcards
6 cards from real Series 66 – Uniform Combined State Law Exam practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Securities & Investment Products flashcards as text
Under the Uniform Securities Act, which of the following is NOT included in the definition of 'security'?
Answer: Fixed annuity
Fixed annuities are insurance products and are excluded from the definition of 'security' under the USA.
Which of the following best describes the Howey Test used to determine whether an instrument is a security?
Answer: An investment of money in a common enterprise with profits expected solely from the efforts of others
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.
Which of the following securities is typically EXEMPT from state registration under the Uniform Securities Act?
Answer: Securities issued by a national bank
Securities issued by national banks are exempt from state registration under the USA because they are federally regulated.
Under the Uniform Securities Act, which transaction is considered an 'exempt transaction'?
Answer: An isolated non-issuer transaction
Isolated non-issuer transactions (such as a one-time private sale between individuals) qualify as exempt transactions under the USA.
Which of the following investment products is considered a 'non-exempt' security that must be registered under the Uniform Securities Act?
Answer: Corporate stock of a newly formed company
Corporate stock of a newly formed company is a non-exempt security that must be registered with the state before being offered or sold.
Under the Uniform Securities Act, which method of securities registration allows a company to register in multiple states simultaneously using a single federal registration?
Answer: Registration by coordination
Registration by coordination allows state registration to become effective at the same time as the SEC registration, making multi-state offerings more efficient.
How this page was made: written with AI tools and published by Nathan Beja, founder of Practice Test Geeks, who is responsible for its content. Exam facts are checked against the official sources listed below. Not reviewed by a subject-matter expert. Editorial policy
Sources & references
Exam facts on this page (fees, format, dates, passing scores) are checked against these official sources; the date is our last check. Editorial policy