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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% | - Error resolution and correction procedures - Order entry and processing procedures - Trade confirmations and account statements - Payment and settlement processes |
| Topic 2: Opens Accounts After Obtaining and Evaluating Customers’ Financial Profile and Investment Objectives | 16% | - Account types and registration - Financial profile and investment objectives assessment - Anti-money laundering (AML) and compliance - Customer identification and verification |
| Topic 3: Seeks Business for the Broker-dealer from Customers and Potential Customers | 24% | - Telemarketing and solicitation rules - Advertising and sales literature regulations - Communications with the public and regulatory rules - Prospecting and identifying customer needs |
| Topic 4: Provides Customers with Information About Investments, Makes Recommendations, Transfers Assets and Maintains Appropriate Records | 50% | - Product features, risks, costs, and tax considerations - Investment company products: mutual funds, UITs, closed-end funds - Recordkeeping and disclosure requirements - Retirement plans and 529 savings plans - Suitability rules and recommendations - Variable contracts: variable annuities, variable life insurance |
FINRA Investment Company and Variable Contracts Products Representative Examination (IR) Sample Questions:
1. Which of the following statements regarding a unit investment trust (UIT) is false?
A) Shares of UITs trade on exchange floors.
B) All UITs are established with a termination date.
C) UITs are actively managed.
D) A UIT has a fixed number of shares.
2. Which of the following is a true statement about FINRA rules regarding material that Giant Investments
submits to its institutional investors?
I. FINRA requires that each member firm establish procedures for each institutional investor separately.
II. Procedures to be followed in distributing material to institutional investors must be in writing.
III. All institutional sales material must be submitted to a principal for approval prior to being used.
IV. Institutional sales material must be maintained by the member firm for at least three years from the
date of last use.
A) I and II only
B) II and III only
C) I, II, and IV only
D) I, II, and III
3. All government bonds and the majority of corporate bonds are traded:
A) on the floor of the NYSE.
B) on regional exchanges.
C) in the over-the-counter market.
D) via electronic communication networks (ECNs).
4. Jack is an investment adviser representative employed by Giant Investments, a family of mutual funds.
Jack has recently read an article posted on the web that he thinks explains some consequences of some
tax law changes that are being considered extremely well, and he e-mails his existing retail customers
with a summary of the salient facts of the article. Given these facts:
A) a copy of the e-mail must be submitted to FINRA within 10 days of Jack's hitting the send button.
B) Both A and C are true statements regarding this situation.
C) Jack must submit a copy of the e-mail to a principal of the company, but he did not need to do so prior
to sending the e-mail.
D) Jack has violated FINRA rules if he did not first have a principal of Giant approve his e-mail prior to
hitting the send button.
5. As her college graduation present, Jennifer's grandmother gave her 200 shares of the stock of IBM. Her
grandmother had purchased the shares for $54 a share in October 2002, and the stock was selling for
$ 132 a share on the day of Jennifer's graduation eight years later. Eight months after her graduation,
Jennifer decides to sell the shares to get money to help with the down payment on a condo she is
purchasing. If IBM is selling for $125 on the day of the sale, what are the tax consequences of this sale for
Jennifer?
A) Jennifer will have taxable income of $15,600, which will be taxed as long-term capital gain income at a
tax-preferred rate.
B) Jennifer will have taxable income of $14,200, which will be taxed as long-term capital gain income at a
tax-preferred rate.
C) Jennifer will have a loss of $1,400, which will be treated as a short-term capital loss for tax purposes.
D) Jennifer will have taxable income of $14,200, which will be taxed as long-term capital gain income at a
tax-preferred rate.
Solutions:
| Question # 1 Answer: C | Question # 2 Answer: C | Question # 3 Answer: C | Question # 4 Answer: C | Question # 5 Answer: D |



