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FINRA Series6 Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Obtains and Verifies Customers' Purchase and Sales Instructions | 10% | - Order processing and transaction procedures
|
| Topic 2: Seeks Business for the Broker-Dealer from Customers and Potential Customers | 24% | - Prospecting and communication with clients
|
| Topic 3: Provides Customers with Information About Investments | 50% | - Investment company securities and variable contracts
|
| Topic 4: Opens Accounts After Obtaining and Evaluating Customer Financial Profile | 16% | - Customer account types and documentation
|
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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