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FINRA Series6 Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Obtains and Verifies Customers’ Purchase and Sales Instructions; Processes, Completes and Confirms Transactions | 10% | - Trade confirmations and account statements - Error resolution and correction procedures - Payment and settlement processes - Order entry and processing procedures |
| Topic 2: Seeks Business for the Broker-dealer from Customers and Potential Customers | 24% | - Communications with the public and regulatory rules - Prospecting and identifying customer needs - Telemarketing and solicitation rules - Advertising and sales literature regulations |
| Topic 3: Provides Customers with Information About Investments, Makes Recommendations, Transfers Assets and Maintains Appropriate Records | 50% | - Recordkeeping and disclosure requirements - Investment company products: mutual funds, UITs, closed-end funds - Variable contracts: variable annuities, variable life insurance - Product features, risks, costs, and tax considerations - Suitability rules and recommendations - Retirement plans and 529 savings plans |
| Topic 4: Opens Accounts After Obtaining and Evaluating Customers’ Financial Profile and Investment Objectives | 16% | - Account types and registration - Customer identification and verification - Financial profile and investment objectives assessment - Anti-money laundering (AML) and compliance |
FINRA Investment Company and Variable Contracts Products Representative Examination (IR) Sample Questions:
1. When a broker-dealer hires a new agent, it must submit:
A) a U-5 form that includes information about the agent's name, address, education, employment history,
and marital status.
B) a U-4 form that includes information about the agent's name, address, education, and employment
history.
C) a U-4 form that includes information about the agent's name, address, and employment history.
D) an REP form that includes information about the agent's name, address, education, and employment
history.
2. On Friday, August 6th, the Board of Directors of Ecolab (ECI) announced that it would pay a dividend of
$ 0.155 a share to shareholders of record as of Tuesday, September 21st.The dividend checks were
scheduled to be mailed on Friday, October 15th.In this scenario, the ex-dividend date is:
A) Friday, August 6th.
B) Friday, September 17th.
C) none of the above.
D) Tuesday, September 21st.
3. Which of the following is not one of the rules stipulated by the Securities Exchange Act of 1934?
A) Investment companies are prohibited from using any sales literature that contains an omission of a
material fact.
B) Firms are required to send copies of their annual reports to investors before an annual meeting at
which directors are to be elected.
C) All brokers and dealers are required to be members of a national securities association.
D) All securities' exchanges and SROs are required to register with the SEC.
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 and III only
B) I, II, and III only
C) I only
D) I and II only
5. When a client purchases a variable contract through you, he should be informed that his money will be
invested:
A) at the most recent price for which the contract sold.
B) at the next price that is computed after the contract application is accepted by the insurance company.
C) in a product with a guaranteed cash value.
D) at the previous day's close price for the contract.
Solutions:
| Question # 1 Answer: C | Question # 2 Answer: B | Question # 3 Answer: A | Question # 4 Answer: A | Question # 5 Answer: B |
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