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| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Provides Customers with Information About Investments | 50% | - Investment company securities and variable contracts
|
| Topic 2: Opens Accounts After Obtaining and Evaluating Customer Financial Profile | 16% | - Customer account types and documentation
|
| Topic 3: Seeks Business for the Broker-Dealer from Customers and Potential Customers | 24% | - Prospecting and communication with clients
|
| Topic 4: Obtains and Verifies Customers' Purchase and Sales Instructions | 10% | - Order processing and transaction procedures
|
1. Which of the following describes a difference between a unit investment trust (UIT) and a mutual fund?
A) UITs are not required to distribute dividends and capital gains to their shareholders as mutual funds
must.
B) All of the above describe differences between a UIT and a mutual fund.
C) UITs have a fixed number of shares; mutual funds do not.
D) UITs must hold non-diversified portfolios; mutual funds may be either non-diversified or diversified.
2. Which of the following securities would be exempt from SEC registration requirements?
I. a 15-year bond issued by the state of Colorado
II. an issue of preferred stock that has an aggregate par value of $5 million
III. an issue of commercial paper that has a 5-month maturity
A) I only
B) I and III only
C) III only
D) I and II only
3. Which of the following is not one of the purposes of FINRA as stated in its articles of incorporation?
A) police members and assist with dispute settlements
B) encourage members to uphold high ethical standards
C) develop lines of communication between the securities industry and governmental agencies
D) maintain a fair and orderly securities market
4. After passing the Series 6 and becoming a registered representative, you will be able to execute
transactions in which of the following securities?
I. corporate stocks
II. mutual funds
III. corporate bonds
IV. variable contracts
A) II and III only
B) I, II, III, and IV
C) I, II, and IV only
D) II and IV only
5. Under FINRA rules, the variable contract sales agreement must specify that any sales commission is to
be returned to the insurance company if the buyer terminates the contract within:
A) 10 business days.
B) one week.
C) 5 business days.
D) 7 business days.
Solutions:
| Question # 1 Answer: C | Question # 2 Answer: B | Question # 3 Answer: D | Question # 4 Answer: D | Question # 5 Answer: D |
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