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FINRA Series6 Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Provides Customers with Information About Investments, Makes Recommendations, Transfers Assets and Maintains Appropriate Records | 50% | - Retirement plans and 529 savings plans - Product features, risks, costs, and tax considerations - Recordkeeping and disclosure requirements - Variable contracts: variable annuities, variable life insurance - Suitability rules and recommendations - Investment company products: mutual funds, UITs, closed-end funds |
| Opens Accounts After Obtaining and Evaluating Customers’ Financial Profile and Investment Objectives | 16% | - Account types and registration - Customer identification and verification - Anti-money laundering (AML) and compliance - Financial profile and investment objectives assessment |
| Seeks Business for the Broker-dealer from Customers and Potential Customers | 24% | - Prospecting and identifying customer needs - Advertising and sales literature regulations - Communications with the public and regulatory rules - Telemarketing and solicitation rules |
| Obtains and Verifies Customers’ Purchase and Sales Instructions; Processes, Completes and Confirms Transactions | 10% | - Order entry and processing procedures - Trade confirmations and account statements - Error resolution and correction procedures - Payment and settlement processes |
FINRA Investment Company and Variable Contracts Products Representative Examination (IR) Sample Questions:
1. Anna Vestor placed an order to sell 100 shares of Microsoft through the on-line site of her broker,
GetErDone Broker-Dealers. GetErDone sold her shares for $24.59 a share and charged her a
commission of $8.95.Among other things, the trade confirmation that Anna receives must stipulate:
I. the time and date of the transaction.
II. that GetErDone served as a principal in the transaction.
III. the number of shares sold and the price at which they were sold.
IV. the exchange or ECN on which the transaction was executed.
A) I, II and III only
B) I and III only
C) I, III, and IV only
D) I, II, III, and IV
2. Simple Simon owns 1,000 shares in the Pasty Pie Corporation, which has just declared a stock dividend
of 5%.Just prior to this announcement, Pasty Pie was selling for $10 a share. This announcement will:
A) increase Simple's cash by the amount of the dividend paid: 0.05 x $10 = $0.50 x 1,000 shares = $500.
B) increase the number of shares that Simple owns to 1,050, but this will not affect the market value of
Simple's holdings.
C) increase the number of shares that Simple owns to 1,050, which will increase the market value of the
shares that he owns from $10,000 to $10,500.
D) increase Pasty's shares outstanding and reduce Simple's proportionate ownership in the firm.
3. Steve Sharp sees a quote for a mutual fund that indicates the fund has a net asset value (NAV) of $26.60
and a public offering price (POP) of $28.00. Based on this, Mr. Sharp quickly ascertains that this fund
must have:
A) either a front-end or rear-end load of 5.0%.
B) either a front-end or rear-end load of 5.3%.
C) a front-end load of 5.0%.
D) a front-end load of 5.3%.
4. Total Investments, a family of mutual funds, has prepared some new PowerPoint slides that it will use at a
free financial planning seminar it offers to the general public. The new slides:
I. must be signed and dated by a registered principal of Total Investments.
II. must be filed with FINRA 10 business days prior to their first use.
III. must be kept in a separate file by Total for three years after the date of their first use.
A) I only
B) I and II only
C) I and III only
D) I, II, and III only
5. Which of the following securities laws regulates the organizational structure and day-to-day operations of
investment companies?
A) The Securities Exchange Act of 1934
B) The Investment Company Act of 1940
C) The Investment Advisers Act of 1940
D) The Securities Act of 1933
Solutions:
| Question # 1 Answer: B | Question # 2 Answer: B | Question # 3 Answer: C | Question # 4 Answer: C | Question # 5 Answer: B |
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