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FINRA Series6 Exam Syllabus Topics:

SectionWeightObjectives
Topic 1: Seeks Business for the Broker-Dealer from Customers and Potential Customers24%- Topics in communications, marketing, and solicitation activities
Topic 2: Obtains and Verifies Customers’ Purchase and Sales Instructions; Processes, Completes and Confirms Transactions10%- Transaction processing and verification
Topic 3: Opens Accounts After Obtaining and Evaluating Customers’ Financial Profile and Investment Objectives16%- Account opening procedures and financial profile evaluation
Topic 4: Provides Customers with Information About Investments, Makes Recommendations, Transfers Assets and Maintains Appropriate Records50%- Product information, suitability, recordkeeping and transfers

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

Which of the following investor characteristics is inconsistent with an aggressive investment strategy?
I. short investment horizon
II. high risk tolerance
III. young

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

Correct Answer: B  🗳️

Explanation: Only visible for Exams4sures members. You can sign-up / login (it's free).

Your client is trying to choose between a variable annuity and a fixed annuity. You can tell him that:
I. the fixed annuity will make guaranteed monthly payments, but has more purchasing power risk than a
variable annuity.
II. he can expect higher monthly payments from his fixed annuity during a bear market than he would get
from a variable annuity.
III. the earnings on both variable and fixed annuities grow tax-deferred.

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

Correct Answer: A  🗳️

Explanation: Only visible for Exams4sures members. You can sign-up / login (it's free).

The difference between a "redemption fee" and a "rear-end load" is that:

  • A. There is no difference. These are synonymous terms.
  • B. the redemption fee refers to charges incurred by the fund when it sells securities it owns; the rear-end
    load is a fee that is incurred by investors in the fund when they redeem their shares of the fund.
  • C. the redemption fee is another name for a 12b-1 fee, which is an annual expense associated with the
    fund.
  • D. a rear-end load is used to compensate a salesperson who has sold shares of the fund; a redemption
    fee is charged to offset the expenses a fund incurs in processing share redemptions.
Reveal Solution  Discussion  0

Correct Answer: D  🗳️

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Lana is registered as a limited representative and is employed by Everything Investments. Her duties
include selling mutual funds and variable contracts products to the firm's clients. She has been
particularly successful in selling variable contracts offered by OneLife insurance company. As a "thank
you" for her hard work, OneLife has offered her a ticket to an upcoming play at a local dinner theatre.
Given this scenario, which of the following statements applies?

  • A. Lana will have to pass on the offer. She is permitted to receive only cash compensation in an amount
    not to exceed $100 from an entity other than Everything, and then only with Everything's approval.
  • B. Lana can accept the offer as long as Everything agrees to it and as long as it is not an ongoing thing
    and/or preconditioned on her achieving a specified sales target.
  • C. Lana can accept the offer without Everything's approval in this instance since the offer does not involve
    cash.
  • D. Lana will have to pass on the offer. Lana is prohibited from receiving compensation from anyone other
    than Everything Investments.
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

Explanation: Only visible for Exams4sures members. You can sign-up / login (it's free).

You have just become a licensed registered representative with Fine, Howard, Fine and Associates, a
broker-dealer.(Congratulations!) You have had a brokerage account with Anon Brokerage for the past ten
years. In this instance, you are required to:

  • A. provide Anon Brokerage with written notification of your association with Fine, Howard, Fine.
  • B. provide Fine, Howard, Fine with written notification of this fact.
  • C. The actions described in both B and C are requirements.
  • D. transfer the assets in your account with Anon to a Fine, Howard, Fine account and close your account
    with Anon.
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

Explanation: Only visible for Exams4sures members. You can sign-up / login (it's free).

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