Series 66 practice test

An individual who provides investment advice on behalf of a state-registered investment adviser and works with the public is generally required to do which of the following?

Under the Uniform Securities Act, which of the following is generally NOT considered a security?

An investment adviser owes a fiduciary duty to its clients. Which action best satisfies this duty?

An agent tells a client that a particular stock is guaranteed to double within a year. This statement is best described as which prohibited practice?

Under the National Securities Markets Improvement Act, an investment adviser that manages 110 million dollars in assets is generally classified as which of the following?

An investment adviser representative wishes to recommend a security in which the representative personally owns a significant position. What must the representative do?

A 30-year-old client with a stable income, a long time horizon, and a high risk tolerance is saving for retirement. Which portfolio allocation is generally most suitable?

Under the Uniform Securities Act, when an agent terminates employment with one broker-dealer and begins employment with another, who is responsible for notifying the Administrator?

A method of registering securities at the state level that relies on the prior effective registration of the securities with the SEC is known as which of the following?

An investment adviser is deemed to have custody of client funds or securities when it does which of the following?

An investment adviser representative wants to choose the specific securities, amounts, and timing of trades in a client account without contacting the client for each trade. What is generally required?

Which calculation determines how much a single sum of money to be received in the future is worth today, given a discount rate?

Before recommending securities to a client, an investment adviser representative should first obtain which of the following?

When prevailing market interest rates rise, what generally happens to the market price of an existing fixed-rate bond?

Under the Investment Advisers Act, which provision must generally be addressed in an investment advisory contract regarding assignment?

The type of risk that can be reduced by holding a well-diversified portfolio of many different securities is known as which of the following?

Under the Uniform Securities Act, which of the following is an example of an exempt transaction?

Under the Uniform Securities Act, the state securities Administrator has the authority to do which of the following?

An investment adviser representative learns material nonpublic information about a company from a corporate insider and trades on it for a client account. This conduct is best described as which of the following?