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FINRA Series6 Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Opens Accounts After Obtaining and Evaluating Customers’ Financial Profile and Investment Objectives | 16% | - Account opening procedures and financial profile evaluation |
| Provides Customers with Information About Investments, Makes Recommendations, Transfers Assets and Maintains Appropriate Records | 50% | - Product information, suitability, recordkeeping and transfers |
| Seeks Business for the Broker-Dealer from Customers and Potential Customers | 24% | - Topics in communications, marketing, and solicitation activities |
| Obtains and Verifies Customers’ Purchase and Sales Instructions; Processes, Completes and Confirms Transactions | 10% | - Transaction processing and verification |
FINRA Investment Company and Variable Contracts Products Representative Examination (IR) Sample Questions:
1. You have a client, Richie Rich, who is in the 39.6% marginal tax bracket, and one of his investment goals
is to minimize his payments to the IRS. Which of the following instruments would serve this purpose?
A) U.S. Treasury bills
B) an investment-grade corporate bond
C) general obligation bonds
D) Both Selections A and B would serve to minimize his payments to the IRS.
2. Mr. Big of HiGrow Corporation needs more money to support the exceptional growth rate that his firm is
enjoying. He meets with BigFee Investment Banker, who agrees to handle the IPO for HiGrow.
Subsequently, InTheLoop Brokerage is tapped to be part of the selling group that will handle the sale of
the new stock to the public. In this example, the underwriter is:
A) BigFee Investment Banker
B) InTheLoop Brokerage
C) Mr. Big
D) HiGrow Corporation
3. Joel has a 28-year-old client who has been promoted to the elevated position of senior software engineer
with a large, well-known, software company at her relatively young age. She has come to Joel for
investment advice, explaining to him that she is risk-averse, having been influenced by parents who grew
up in a foreign country and had little, prior to immigrating to America and working hard to achieve their
dreams for themselves and their children. She has $50,000 that she wants him to invest for her, and her
primary goal is to be able to have enough
money, beyond what she expects to have in her employer's retirement program, to return to her home
country and help others achieve their dreams. Joel explains to her that she may have to invest in riskier
securities in order to achieve her goal, but his client is adamant that she wants her portfolio to be invested
to target growth with the least risk exposure possible. Given the facts:
A) Joel should invest his client's monies in a U.S. government bond fund since she is risk-averse.
B) Joel should invest his client's monies in a growth fund to target her growth objective.
C) Joel should invest his client's monies in a fund that specializes in stocks of his client's home country to
avoid the exchange rate risk that she will be exposed to when she returns.
D) Joel should divide his client's monies among growth, aggressive growth, and foreign stock funds.
Regardless of what she says, she has a long investment horizon and can afford to take on more risk.
4. A new issue of common stock can be classified in which of the following categories?
I. primary market
II. money market
III. secondary market
IV. capital market
A) I only
B) I and IV only
C) III only
D) II and III only
5. Mr. and Mrs. R. Retired are planning on traveling extensively throughout the U.S. in their new motor home
now that they have reached their golden years. Under FINRA rules, upon written instructions from Mr. and
Mrs. R. Retired, their broker is required to hold their mail for a maximum of:
A) 1 month.
B) 2 months.
C) none of the above. It is Mr. and Mrs. Retired's responsibility to establish a mail-hold through the post
office.
D) 3 months.
Solutions:
| Question # 1 Answer: C | Question # 2 Answer: A | Question # 3 Answer: B | Question # 4 Answer: B | Question # 5 Answer: B |
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