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FINRA Series6 Exam Syllabus Topics:

SectionWeightObjectives
Obtains and Verifies Customers' Purchase and Sales Instructions10%- Order processing and transaction procedures
  • 1. Order entry and confirmation
    • 2. Settlement and trade verification
      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
          Seeks Business for the Broker-Dealer from Customers and Potential Customers24%- Prospecting and communication with clients
          • 1. Ethical sales practices and communications rules
            • 2. Marketing investment company products
              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

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

                    1. The Howey Decision did what?

                    A) stipulated that all general partnerships were investment contracts and, therefore, securities, as defined
                    by the Securities Exchange Act of 1934.
                    B) defined an investment contract as any investment of money in a common enterprise with the
                    expectation of earning a profit from the efforts of others.
                    C) determined that certificates of deposit issued by a bank and insured by the FDIC did not qualify as
                    securities, as defined by the Securities Exchange Act of 1934.
                    D) provided for fixed annuities to be excluded from the definition of a security.


                    2. Under FINRA Rule 2830, a member firm and its associates are prohibited from selling shares of a mutual
                    fund if the service fees disclosed in the fund prospectus exceed:

                    A) 0.50% of the fund's average annual net assets.
                    B) 1.00% of the fund's average annual net assets.
                    C) 0.75% of the fund's average annual net assets.
                    D) 0.25% of the fund's average annual net assets.


                    3. Which of the following statements regarding the "rights of accumulation" is true?

                    A) All mutual funds that have front-end loads are required to allow their shareholders rights of
                    accumulation.
                    B) A letter of intent must be signed to activate the rights of accumulation.
                    C) A breakpoint must be reached within a 13-month period, at which point the accumulation period begins
                    anew.
                    D) Reinvested dividends and capital gain distributions count toward reaching a breakpoint under the rights
                    of accumulation.


                    4. Which of the following pieces of information may not be contained in a tombstone advertisement under
                    SEC rules?

                    A) the type of business in which the issuing firm is engaged
                    B) the price of the offering
                    C) the name and address of a place where a prospectus can be obtained
                    D) the name of the issuer


                    5. Which of the following is not a potential advantage associated with investing through a mutual fund?

                    A) simplified recordkeeping
                    B) price discovery
                    C) diversification
                    D) lower cost associated with portfolio management


                    Solutions:

                    Question # 1
                    Answer: B
                    Question # 2
                    Answer: D
                    Question # 3
                    Answer: D
                    Question # 4
                    Answer: B
                    Question # 5
                    Answer: B

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