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FINRA Series6 Exam Syllabus Topics:

SectionWeightObjectives
Opens Accounts After Obtaining and Evaluating Customers’ Financial Profile and Investment Objectives16%- Financial profile and investment objectives assessment
- Account types and registration
- Anti-money laundering (AML) and compliance
- Customer identification and verification
Obtains and Verifies Customers’ Purchase and Sales Instructions; Processes, Completes and Confirms Transactions10%- Payment and settlement processes
- Error resolution and correction procedures
- Order entry and processing procedures
- Trade confirmations and account statements
Seeks Business for the Broker-dealer from Customers and Potential Customers24%- Advertising and sales literature regulations
- Communications with the public and regulatory rules
- Prospecting and identifying customer needs
- Telemarketing and solicitation rules
Provides Customers with Information About Investments, Makes Recommendations, Transfers Assets and Maintains Appropriate Records50%- Investment company products: mutual funds, UITs, closed-end funds
- Product features, risks, costs, and tax considerations
- Variable contracts: variable annuities, variable life insurance
- Retirement plans and 529 savings plans
- Recordkeeping and disclosure requirements
- Suitability rules and recommendations

FINRA Investment Company and Variable Contracts Products Representative Examination (IR) Sample Questions:

The totalof a mutual fund's front-end load, rear-end load, and 12b-1 fees may not exceed:

  • A. 8.5% of the average annual net assets of the fund.
  • B. 10.0%.of the fund's net asset value.
  • C. 8.5% of the fund's offer price.
  • D. 10.0% of the fund's offer price.
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

Explanation: Only visible for PassLeaderVCE members. You can sign-up / login (it's free).

Mr. Walt Street has observed that a Treasury note maturing in November of 2019 and paying a 3.375%
coupon has a bid price of 105:25 and an ask price of 105:26.In this instance, what is the dealers' spread
for every $1,000 of par value?

  • A. $0.03375
  • B. $0.10000
  • C. $0.03125
  • D. $0.31250
Reveal Solution  Discussion  0

Correct Answer: D  🗳️

Explanation: Only visible for PassLeaderVCE members. You can sign-up / login (it's free).

Mr. Cross wanders into your office with a $35,000 check that he has received from his recently-deceased
wife's insurance company and wants you to advise him how to invest it, since that is your job, as he puts it.
You ask him to fill out a standard investor profile questionnaire, but he refuses to do so. You offer to fill it
out for him, based on his answers to your verbal questions, but he still refuses and calls you a
"nibby-nose." Based on this, you can:

  • A. allocate the $35,000 any way you choose since you have an uncooperative client.
  • B. advise him to invest the money in a money market mutual fund instead of holding it as cash.
  • C. advise him to invest the money in an S&P 500 Index fund.
  • D. The advice provided in either Choice B or Choice C would be appropriate.
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

Explanation: Only visible for PassLeaderVCE members. You can sign-up / login (it's free).

Giant Investments mass mails a single-page, glossy flyer that lists the types of mutual funds it offers,
along with a general explanation of what the investment objective of each type of fund is. The flyer also
prominently provides Giant's contact information. Given these facts:

  • A. None of the above statements is true.
  • B. Giant Investments must submit a copy of this brochure within 10 days of its initial distribution date to
    FINRA.
  • C. a principal of Giant Investments must sign (or initial) and date the brochure, giving it his official
    approval.
  • D. the brochure will be subject to spot checks by FINRA and will need to be kept on file.
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

Explanation: Only visible for PassLeaderVCE members. You can sign-up / login (it's free).

A bond has a face value of $1,000, matures in 10 years, and pays an 8% coupon, with interest paid
semiannually. If the bond is priced to yield 8.8%, it is selling:

  • A. at a discount.
  • B. at its maturity value.
  • C. at par.
  • D. at a premium.
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

Explanation: Only visible for PassLeaderVCE members. You can sign-up / login (it's free).

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