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FINRA Certification Series6

Series6

Exam Code: Series6

Exam Name: Investment Company and Variable Contracts Products Representative Examination (IR)

Updated: Aug 01, 2026

Q&A Number: 325 Q&As

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FINRA Series6 Exam Syllabus Topics:

SectionWeightObjectives
Topic 1: Obtains and Verifies Customers' Purchase and Sales Instructions10%- Order processing and transaction procedures
  • 1. Settlement and trade verification
    • 2. Order entry and confirmation
      Topic 2: 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
          Topic 3: Provides Customers with Information About Investments50%- Investment company securities and variable contracts
          • 1. Risks, disclosures, and performance reporting
            • 2. Mutual funds and ETFs characteristics
              • 3. Variable annuities and insurance-based products
                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:

                    1. Which of the following investor characteristics is inconsistent with an aggressive investment strategy?
                    I. short investment horizon
                    II. high risk tolerance
                    III. young

                    A) I only
                    B) I and II
                    C) I, II, and III
                    D) III only


                    2. Pete Prophet, the manager of a bond mutual fund, is expecting interest rates to increase. All else equal,
                    which of the following bonds would be the best investment under this assumption?

                    A) a bond with a 10% coupon and 5 years to maturity
                    B) a bond with a 5% coupon and 10 years to maturity
                    C) a Treasury strip with 15 years to maturity
                    D) a zero-coupon corporate bond with 12 years to maturity


                    3. Commercial paper is:

                    A) long-term debt issued by commercial banks.
                    B) issued with maturities of 1 to 2 years.
                    C) short-term debt that is backed by stocks and bonds that the issuing firm owns.
                    D) short-term, unsecured debt issued by large corporations.


                    4. Mary is interested in buying shares of the Lambchops Corporation, which sells over-the-counter. The
                    market maker with the best bid price--$3.15--is Veggie Investments. The market maker with the best ask
                    price--$3.27-is Carnivor Investments. Mary conducts trades in NYSE-listed stocks through her broker,
                    Omnivor and Associates. Given this scenario, which of the following statements is true?

                    A) Mary can buy shares of Lambchops Corporation at the bid price of $3.15 by contacting Veggie
                    Investments directly.
                    B) Mary can buy shares of Lambchops Corporation at the bid price of $3.15 by contacting Omnivor and
                    Associates.
                    C) Mary can buy shares of Lambchops Corporation at the ask price of $3.27 by contacting Omnivor and
                    Associates.
                    D) Mary can buy shares of Lambchops Corporation at the ask price of $3.27 by contacting Carnivor
                    Investments directly.


                    5. Tex Payor bought 1,500 shares of the Bonds4U Mutual Fund, a no load fund, on June 12th for $28 a
                    share and sold the shares the following year on June 11th for $40 a share. This will result in which of the
                    following tax consequences for Tex?

                    A) Tex will have to pay tax on $18,000, taxed as ordinary income at his marginal tax rate.
                    B) Tex will have to pay tax on $40,000 of capital gain income, taxed at the preferential rate for long-term
                    capital gains.
                    C) Tex will have to pay tax on $40,000, taxed as ordinary income at his marginal tax rate.
                    D) Tex will have to pay tax on $18,000 of capital gain income, taxed at the preferential rate for long-term
                    capital gains.


                    Solutions:

                    Question # 1
                    Answer: A
                    Question # 2
                    Answer: A
                    Question # 3
                    Answer: D
                    Question # 4
                    Answer: C
                    Question # 5
                    Answer: A

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