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FINRA Series6 Exam Syllabus Topics:

SectionWeightObjectives
Seeks Business for the Broker-Dealer from Customers and Potential Customers24%- Prospecting and communication with clients
  • 1. Marketing investment company products
    • 2. Ethical sales practices and communications rules
      Obtains and Verifies Customers' Purchase and Sales Instructions10%- Order processing and transaction procedures
      • 1. Settlement and trade verification
        • 2. Order entry and confirmation
          Provides Customers with Information About Investments50%- Investment company securities and variable contracts
          • 1. Risks, disclosures, and performance reporting
            • 2. Mutual funds and ETFs characteristics
              • 3. Variable annuities and insurance-based products
                Opens Accounts After Obtaining and Evaluating Customer Financial Profile16%- Customer account types and documentation
                • 1. Suitability and KYC requirements
                  • 2. Account registration and ownership types

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

                    You have a client, Richie Rich, who is in the 39.6% marginal tax bracket, and one of his investment goals
                    is to minimize his payments to the IRS. Which of the following instruments would serve this purpose?

                    • A. an investment-grade corporate bond
                    • B. U.S. Treasury bills
                    • C. Both Selections A and B would serve to minimize his payments to the IRS.
                    • D. general obligation bonds
                    Reveal Solution  Discussion  0

                    Correct Answer: D  🗳️

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

                    Under current tax laws, which of the following distributions received from a mutual fund qualify for
                    preferential tax treatment?
                    I. short-term capital gains
                    II. long-term capital gains
                    III. qualifying dividends
                    IV. non-qualifying dividends

                    • A. II and III only
                    • B. I, II, III, and IV
                    • C. III only
                    • D. I, II, and III only
                    Reveal Solution  Discussion  0

                    Correct Answer: A  🗳️

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

                    Your nephew has asked you to help him formulate a financial plan for his family. Scott is 27 years old and
                    has been employed as an associate with a law firm for two years. Sarah, his wife, is 26 years old and
                    works in the human resources department of a large corporation. The couple is childless now, but they
                    plan to begin a family in a few years. Together, they have accumulated $10,000 in a savings account and
                    recently inherited $40,000 cash. They expect to be able to start saving at least $5,000 annually since their
                    incomes more than meet their current needs. They each have employer-provided health insurance and
                    retirement plans. Both have excellent upward mobility potential in their careers. They currently pay taxes
                    at the marginal rate of 15%. Scott tells you that although they regularly read some of the more popular
                    financial investment magazines, neither feels particularly knowledgeable about the world of investments.
                    Based on this information, which of the following statements is true?

                    • A. Purchasing power risk is not an issue in their situation.
                    • B. A greater than average percentage of their money should be invested in municipal bonds to minimize
                      their currently high tax bill.
                    • C. A greater than average percentage of their money should be invested in money market mutual funds to
                      meet their needs for liquidity.
                    • D. Although some money should be allocated to bond funds for diversification purposes, bond funds
                      should be underweighted in favor of stock funds.
                    Reveal Solution  Discussion  0

                    Correct Answer: D  🗳️

                    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).

                    The URMoney Mutual fund, a no load fund, has 10 million shares outstanding. The market value of its
                    assets is $620 million and its liabilities are $150. Based on this information, an investor who wants to buy
                    shares of the fund will pay:

                    • A. This cannot be answered without knowing what, if any, the front-end load is.
                    • B. $47 a share.
                    • C. $62 a share.
                    • D. $15 a share.
                    Reveal Solution  Discussion  0

                    Correct Answer: B  🗳️

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

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