FINRA Series 6 Exam Prep

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

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

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?

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

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

Which of the following markets includes the Pink Sheets?

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

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

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

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

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

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?

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?

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?

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

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

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

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

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

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

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

Annuities are considered to be:

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

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

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

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

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

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

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?

Securities held in UTMA/UGMA accounts are owned by:

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

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

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

Which of the following is biggest risk of leveraged ETFs?

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

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?