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FINRA Series6 Exam Syllabus Topics:

SectionWeightObjectives
Topic 1: 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 2: Provides Customers with Information About Investments50%- Investment company securities and variable contracts
      • 1. Mutual funds and ETFs characteristics
        • 2. Risks, disclosures, and performance reporting
          • 3. Variable annuities and insurance-based products
            Topic 3: Obtains and Verifies Customers' Purchase and Sales Instructions10%- Order processing and transaction procedures
            • 1. Order entry and confirmation
              • 2. Settlement and trade verification
                Topic 4: Opens Accounts After Obtaining and Evaluating Customer Financial Profile16%- Customer account types and documentation
                • 1. Suitability and KYC requirements
                  • 2. Account registration and ownership types

                    FINRA Investment Company and Variable Contracts Products Representative Examination (IR) Sample Questions:

                    Which of the following actions can be expected to result in a decrease in stock and bond prices, all else
                    equal?
                    I. The Federal Reserve announces a decrease in the discount rate.
                    II. Congress votes to decrease payments to Social Security recipients.
                    III. Congress votes to decrease taxes.
                    IV. The Federal Reserve announces that it will sell some of the Treasury securities it owns on the open
                    market.

                    • A. II and III only
                    • B. II and IV only
                    • C. I, II, and III only
                    • D. I and III only
                    Reveal Solution  Discussion  0

                    Correct Answer: B  🗳️

                    Explanation: Only visible for TestKingsIT members. You can sign-up / login (it's free).

                    Marshall's employer offers a 403(b) plan, and Marshall must decide into which of several mutual fund
                    alternatives the contributions will be invested. Regardless of other factors, which of the following would
                    clearly not be a good choice?

                    • A. a fund that invests almost exclusively in high-tech stocks
                    • B. a fund that invests in both foreign and domestic stocks
                    • C. a fund that invests in stocks that are expected to experience high growth
                    • D. a municipal bond fund
                    Reveal Solution  Discussion  0

                    Correct Answer: D  🗳️

                    Explanation: Only visible for TestKingsIT members. You can sign-up / login (it's free).

                    The totalof a mutual fund's front-end load, rear-end load, and 12b-1 fees may not exceed:

                    • A. 10.0%.of the fund's net asset value.
                    • B. 8.5% of the average annual net assets of the fund.
                    • C. 8.5% of the fund's offer price.
                    • D. 10.0% of the fund's offer price.
                    Reveal Solution  Discussion  0

                    Correct Answer: C  🗳️

                    Explanation: Only visible for TestKingsIT members. You can sign-up / login (it's free).

                    Under FINRA Rule 2830, a member firm and its associates are prohibited from selling shares of a mutual
                    fund if the service fees disclosed in the fund prospectus exceed:

                    • A. 0.50% of the fund's average annual net assets.
                    • B. 0.75% of the fund's average annual net assets.
                    • C. 0.25% of the fund's average annual net assets.
                    • D. 1.00% of the fund's average annual net assets.
                    Reveal Solution  Discussion  0

                    Correct Answer: C  🗳️

                    Explanation: Only visible for TestKingsIT members. You can sign-up / login (it's free).

                    Which of the following is true about a hedge fund?

                    • A. It is designed to help investors hedge their risk and, as such, is a low risk alternative to a mutual fund.
                    • B. It is closed to all but sophisticated, wealthy investors.
                    • C. It is more liquid than almost any investment other than a money market mutual fund.
                    • D. It has very low management fees since it is passively managed.
                    Reveal Solution  Discussion  0

                    Correct Answer: B  🗳️

                    Explanation: Only visible for TestKingsIT members. You can sign-up / login (it's free).

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