FINRA Series6 Q&A - in .pdf

  • Exam Code: Series6
  • Exam Name: Investment Company and Variable Contracts Products Representative Examination (IR)
  • Q & A: 325 Questions and Answers
  • PDF Price: $49.99
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FINRA Series6 Q&A - Testing Engine

  • Exam Code: Series6
  • Exam Name: Investment Company and Variable Contracts Products Representative Examination (IR)
  • Q & A: 325 Questions and Answers
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FINRA Series6 Exam Syllabus Topics:

SectionWeightObjectives
Topic 1: Provides Customers with Information About Investments50%- Investment company securities and variable contracts
  • 1. Variable annuities and insurance-based products
    • 2. Mutual funds and ETFs characteristics
      • 3. Risks, disclosures, and performance reporting
        Topic 2: Obtains and Verifies Customers' Purchase and Sales Instructions10%- Order processing and transaction procedures
        • 1. Settlement and trade verification
          • 2. Order entry and confirmation
            Topic 3: 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
                Topic 4: Opens Accounts After Obtaining and Evaluating Customer Financial Profile16%- Customer account types and documentation
                • 1. Account registration and ownership types
                  • 2. Suitability and KYC requirements

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

                    Question #1

                    Which of the following statements regarding the taxes associated with a variable life insurance policy is
                    false?

                    • A. Payments to beneficiaries upon the death of the policyholder are taxed as ordinary income.
                    • B. Earnings on a variable life insurance policy grow tax-free.
                    • C. One variable life policy can be exchanged for another variable life policy without triggering any tax
                      consequences under Section 1035 of the tax code.
                    • D. If a policyholder withdraws some of the cash value associated with the policy, taxes need only be paid
                      on the amount that exceeds the totalamount of the premiums paid to date.
                    Answer: A

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

                    Question #2

                    Which of the following statements about specialists is false?

                    • A. In addition to acting as market makers, specialists also act as agents and execute limit orders placed
                      by commission brokers for their clients if the specified price is reached.
                    • B. Specialists are employees of the exchange on which they oversee trades.
                    • C. Specialists are market makers in assigned stocks and, as such, can profit from these investments.
                    • D. Specialists are required to maintain a fair and orderly market in their assigned stocks, meaning that
                      they must buy if there is an excess of sell orders and sell out of their own portfolios if there is an excess of
                      buy orders.
                    Answer: B

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

                    Question #3

                    A table providing detailed information on the various fees and expenses charged by a mutual fund can be
                    found in the fund's:

                    • A. Statement of Additional Information (SAI. )
                    • B. annual report.
                    • C. prospectus.
                    • D. financial statements.
                    Answer: C

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

                    Question #4

                    Which of the following statements regarding a unit investment trust (UIT) is false?

                    • A. Shares of UITs trade on exchange floors.
                    • B. UITs are actively managed.
                    • C. A UIT has a fixed number of shares.
                    • D. All UITs are established with a termination date.
                    Answer: B

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

                    Question #5

                    The "catch-up provision" that has been established for both the traditional and Roth IRAs applies to
                    people of what age?

                    • A. 60 and older
                    • B. 55 and older
                    • C. 50 and older
                    • D. 62 and older
                    Answer: C

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