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FINRA Series 6 Exam Prep

Frage 1 von 35

1

What securities should a 50-year old investor purchase if the goal is tax-free income?

Wähle eine der folgenden:

  • A preferred stock inside of a Traditional IRA.

  • A Treasury Bond.

  • A municipal bond.

  • A fixed rate annuity.

Erklärung

Frage 2 von 35

1

Which of the following is a violation of FINRA conduct rules?

Wähle eine der folgenden:

  • A registered representative who purchases a security before he buys many shares of it for a customer's account, with advance knowledge of the customer's order.

  • Using soft dollars to purchase investment research.

  • Neglecting to present a prospectus prior to selling an investment to a prospect.

  • A member firm fails to register a broker's assistant.

Erklärung

Frage 3 von 35

1

A corporate bond selling on the secondary market has a price of 96 and a coupon rate of 4.25%. What is the current yield for this bond?

Wähle eine der folgenden:

  • 0.0408

  • 0.0425

  • 0.0443

  • 0.0439

Erklärung

Frage 4 von 35

1

Rule 17f-2 of the Securities Exchange Act requires:

Wähle eine der folgenden:

  • Registration of securities to be traded in the secondary market

  • Fair trade practices with both customers and non-customers

  • Broker-dealers to register with the SEC

  • Principals, officers, and certain employees of member firms to be fingerprinted

Erklärung

Frage 5 von 35

1

Which of the following is true regarding the "combination privilege" and mutual funds?

Wähle eine der folgenden:

  • It allows family members to pool their investments in order to take advantage of break point pricing.

  • It allows an investor to pool her investments from multiple funds from the same family of funds for the purpose of receiving breakpoint pricing.

  • It allows investors to receive financial reporting for several mutual funds on a single financial statement.

  • None of the choices listed.

Erklärung

Frage 6 von 35

1

Which of the following markets includes the Pink Sheets?

Wähle eine der folgenden:

  • first market

  • second market

  • third market

  • fourth market

Erklärung

Frage 7 von 35

1

Which of the following annuity settlement options is likely to offer the lowest monthly payment?

Wähle eine der folgenden:

  • Insufficient information to answer the question

  • Joint and survivor annuity

  • Life annuity

  • Life with five year period certain annuity

Erklärung

Frage 8 von 35

1

Which of the following are considered "generic advertising"?

I. a brochure about an individual mutual fund

II. a brochure about an entire mutual fund family

III. an educational brochure from XYZ mutual funds that solely explains the basics of asset allocation

IV. a magazine insert that allows a reader to request more information about certain types of funds

Wähle eine der folgenden:

  • I, II, and IV

  • I, II, III, and IV

  • III and IV

  • I and II

Erklärung

Frage 9 von 35

1

Communications with which of the following entities would be considered "institutional communications"?

I. Banks

II. An individual with $25 million in assets

III. A Section 457 plan with 60 clients

IV. A government entity

Wähle eine der folgenden:

  • I, II, III, and IV

  • II, III, and IV

  • I and IV

  • I, II, and III

Erklärung

Frage 10 von 35

1

All of the following are possible structural classifications of mutual funds EXCEPT:

Wähle eine der folgenden:

  • diversified and nondiversified

  • equity and bond

  • all the choices are correct

  • open-ended and closed-ended

Erklärung

Frage 11 von 35

1

When opening an account for a customer who is a natural person, a broker-dealer must ask for (but not necessarily receive) what of the following information, assuming the broker-dealer will make recommendations to the customer?

I. The social security number or tax identification number of the account owner

II. Investment objectives

III. Estimated income and net worth

IV. Occupational information

Wähle eine der folgenden:

  • I and III only

  • I, II, and III only

  • I and II only

  • I, II, III, and IV

Erklärung

Frage 12 von 35

1

Alice, a registered representative, and Bob, a customer, are having a dispute after the variable annuity she sold him just lost value. Bob says that he can't afford to lose income on his investments, so the product Alice sold him was unsuitable. Alice claims that Bob indicated that he was willing to take on risk to increase his potential returns. Alice and Bob each suspect that the other is not acting in good faith and refuse to talk directly to each other. How will the dispute most likely be resolved?

Wähle eine der folgenden:

  • Mediation

  • Summary judgment

  • Litigation

  • Arbitration

Erklärung

Frage 13 von 35

1

A Oregon hazelnut farm exports all of their hazelnuts to China and a Chinese trampoline manufacturer exports all of their trampolines to the U.S. Which of the following is true?

Wähle eine der folgenden:

  • Both the hazelnut farm and the Chinese trampoline manufacturer prefer a weak dollar

  • The hazelnut farm prefers a strong dollar and the Chinese trampoline manufacturer prefers a weak dollar

  • Both the hazelnut farm and the Chinese trampoline manufacturer prefer a strong dollar

  • The hazelnut farm prefers a weak dollar and the Chinese trampoline manufacturer prefers a strong dollar

Erklärung

Frage 14 von 35

1

Use the following data to answer this question:

I. Primary Residence:
Fair Market Value $800,000
Outstanding Mortgage $150,000
Joint Brokerage Account $130,000
Joint Bank Account $70,000
Vacation Home Fair Market Value $400,000
Outstanding Mortgage $0

II. Primary Residence:
Fair Market Value $500,000
Outstanding Mortgage $0
Joint Brokerage Account $300,000
Joint Bank Account $150,000
Investment Property: Fair Market Value $300,000
Outstanding Mortgage $50,000

III. Primary Residence:
Fair Market Value $400,000
Outstanding Mortgage $200,000
Joint Brokerage Account $250,000
Joint Bank Account $250,000
Individual Brokerage Account $300,000
Individual Bank Account $250,000

Without consideration to income, which of the above net worth scenarios would qualify a married couple for classification as accredited investors?

Wähle eine der folgenden:

  • III only

  • None of the above scenarios meet the asset requirements

  • I, II, and III

  • I and II

Erklärung

Frage 15 von 35

1

The federal legislation that requires issuers of securities to register the securities and provide full disclosure to investors is:

Wähle eine der folgenden:

  • The Securities Exchange Act of 1934

  • The Securities Act of 1933

  • The Investment Company Act of 1940

  • The Uniform Sales of Securities Act of 1930

Erklärung

Frage 16 von 35

1

XYZ stock is selling for $60 per share with a quarterly dividend of $0.40. The current yield for XYZ is

Wähle eine der folgenden:

  • 1.5%

  • 0.67%

  • 2.67%

  • 4%

Erklärung

Frage 17 von 35

1

All of the following entities are exempt from the securities registration requirements of the Paper Act EXCEPT

Wähle eine der folgenden:

  • Berkshire Hathaway common stock.

  • GMAC Bank.

  • the U.S. Treasure Department.

  • the state of New Jersey.

Erklärung

Frage 18 von 35

1

If there is activity in a customer's account, statements must be sent:

Wähle eine der folgenden:

  • Monthly

  • Annually

  • Weekly

  • Quarterly

Erklärung

Frage 19 von 35

1

For representatives whose telemarketing activities are subject to the tape-recording rule, when must the reports reviewing those taped conversations be submitted to FINRA?

Wähle eine der folgenden:

  • Twice a year

  • Quarterly

  • Within 30 days of the end of each quarter

  • Within 30 days of the end of each month being monitored

Erklärung

Frage 20 von 35

1

Which type of risk would a registered representative be least likely to emphasize to their clients about inverse leveraged ETFs?

Wähle eine der folgenden:

  • They are designed to meet their goals on a daily basis, and their goals are reset daily which can lead to large tracking errors

  • The fund is betting the opposite direction of the market that they are tracking

  • The underlying securities of leveraged ETFs are more liekly to default

  • Managers rely on complicated investment strategies such as derivatives, swaps, and futures contracts that can lead to high volatility in returns

Erklärung

Frage 21 von 35

1

According to FINRA, the duties of a registered principal include all of the following except:

Wähle eine der folgenden:

  • Reviewing correspondence

  • Opening all new accounts

  • Initialing all order tickets

  • Handling all written customer complaints

Erklärung

Frage 22 von 35

1

Annuities are considered to be:

I. qualified
II. tax-deferred
III. retirement vehicles
IV. risky

Wähle eine der folgenden:

  • I and III

  • II, III and IV

  • II and III

  • I, II, III and IV

Erklärung

Frage 23 von 35

1

Which of the following departments of a member firm is responsible for sending out order confirmations?

Wähle eine der folgenden:

  • Order room

  • Margin

  • Cashiering

  • Purchasing and sales

Erklärung

Frage 24 von 35

1

The FINRA Conduct Rules consider an email to be corresponsdence if it meets all of the following conditions EXCEPT

Wähle eine der folgenden:

  • the email was sent to all customers within a 30-day period

  • it was sent to less than 25 prospective retail customers

  • All of these conditions would be considered correspondence.

  • the email was sent to a single customer

Erklärung

Frage 25 von 35

1

On what financial reporting document must a broker-dealer indicate that it is not a member of SIPC?

Wähle eine der folgenden:

  • ADV Part II

  • ADV Part I

  • Trade confirmation

  • Application

Erklärung

Frage 26 von 35

1

John is developing promotional material for Megafund, an investment company. The material compares Megafund's performance over the past ten years against five other investment companies, based on information provided by Megafund. Once the material gets the required approval, John will send the material out to potential customers and to broker-dealers who will send it out to their customers. Which of the following are true?

I. The promotional material will require prior principal approval

II. John will need to send the material to FINRA 10 days prior to its first use

III. John will need to send the material to FINRA within 10 days of its first use

IV. If the broker-dealers do not change the promotional material as is to their customers, they will need to re-file it with FINRA

Wähle eine der folgenden:

  • II and IV

  • I and II

  • III and IV

  • I and III

Erklärung

Frage 27 von 35

1

All of the following are considered low-cost methods of investing in a broad stock market portfolio EXCEPT:

Wähle eine der folgenden:

  • Variable annuities

  • Closed-end funds

  • ETFs

  • Open-end mutual funds

Erklärung

Frage 28 von 35

1

Martha is worried about another bear market and wants you, her registered representative, to position her portfolio defensively. What would be an appropriate investment for Martha?

Wähle eine der folgenden:

  • An equity income fund

  • A small cap growth fund

  • An energy services fund

  • A technology fund

Erklärung

Frage 29 von 35

1

Securities held in UTMA/UGMA accounts are owned by:

Wähle eine der folgenden:

  • The custodian

  • The minor

  • The parent

  • The broker

Erklärung

Frage 30 von 35

1

On the floor of an exchange, who is responsible for maintaining a fair and orderly market in a security?

Wähle eine der folgenden:

  • NASDAQ market maker

  • Floor broker

  • Specialist

  • Broker's broker

Erklärung

Frage 31 von 35

1

According to FINRA, the fundamental responsibility all registered representatives have in common when it comes to working with customers is:

Wähle eine der folgenden:

  • Honesty

  • Integrity

  • Fair dealing

  • Suitability

Erklärung

Frage 32 von 35

1

What is the maximum contribution a 55-year old person might be able to make to a Roth IRA in 2013?

Wähle eine der folgenden:

  • $4,000

  • $6,500

  • $2,000

  • $5,500

Erklärung

Frage 33 von 35

1

Which of the following is biggest risk of leveraged ETFs?

Wähle eine der folgenden:

  • Large tracking errors

  • Business risk

  • Interest rate risk

  • Default risk

Erklärung

Frage 34 von 35

1

When the US Treasury sells bonds, the price of the securities may be _________________ the bond's par amount.

Wähle eine der folgenden:

  • all of the choices listed

  • equal to

  • less than

  • greater than

Erklärung

Frage 35 von 35

1

David is considering an investment with the following characteristics: actively managed and invests exclusively in Asia, currently trades at a premium to the value of its underlying investments and can be bought and sold on the New York Stock Exchange, not redeemable, uses leverage to increase returns. What type of security is David considering?

Wähle eine der folgenden:

  • Mutual fund

  • Unit investment trust

  • ETF

  • Closed-end fund

Erklärung

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