Series 6 final 1
4, retail communications related to performance, ranking of mutual funds, must be filed with FINRA no later than A 10 days prior to their first use B 48 hours prior to their first use C by the time of their first use D within 10 days of their first use
A = 10 days prior to their first use
44, if a mutual fund distributes, less than 90% of its investment income, how much of its net investment income is subject to income tax A 100% of net investment income B 90% of net investment income C all undistributed, net, investment income D none of the net, investment income
A = 100% of net investment income
2, which of the following would be considered an institutional communication A a letter about a fund that will only go to individuals with a net worth over 50 million B and Everett has about a fund that will go to pension plans, but that might be passed onto participants of the pension plan C an internal memo of a broker dealer D advertisements that we placed in a trade magazine that is read by bankers
A = a letter about a fund that will only go to individuals with a net worth over 50 million
28, registered representative must obtain, signed resolution, authorizing the opening of a A corporate account B trust account C partnership account D guardian
A = corporate account
17, which of the following investments is least suitable for a retail investor who makes $50,000 a year and has a long time horizon A inverse ETF B growth fund C variable annuity D large cap fund
A = inverse ETF
31, under SEC regulation, best interest. When would a broker dealer be allowed to put his interest above the interest of a retail customer to whom it is making a recommendation. A never B when the broker dealer disclosures that is putting it is interest above the interest of the customer C when the recommendation is suitable for the customer D when the broker dealer does not have a conflict of interest when making the recommendation
A = never
8, how often must a broker dealer update, statistical and summary information to include a specific customer complaint to FINRA A quarterly after receipt of the complaint B only if it determines the complaint to be important C monthly, after the receipt of the complaint D promptly after the receipt of the complaint
A = quarterly after receipt of the complaint
37, buying a put option, would indicate what about an investor A she is bearish on a stock B she is bullish on a stock C she believes a stock will split soon D she favors low risk investments
A = she is bearish on a stock
22, hey register a representative wants to recommend a mutual fund for a retired customer the representative A should inquire about the customers, financial situation, and other security holdings B can immediately recommend a government security fund or municipal bond fund without your prospectus, because these securities are exempt from the prospective requirement C offer the customer, a portion of his sales commission to improve the total return on investment D so advise the customer that the income yield from a growth fund includes dividend and capital gains distributions for the year
A = should inquire about the customers, financial situation, and other security holdings
12, who maintains control over a 529 college savings plan account A the account owner B the beneficiary C the contributor D the broker dealer
A = the account owner
11, which of the following would not be appropriate method for reducing a mutual funds sale charge by qualifying for breakpoints A using a conversion exchange privilege B signing a letter of intent C combining purchases across a fund family D using investors right of accumulation
A = using a conversion exchange privilege
23, which statement about the tax treatment of mutual fund distributions is true A if investors reinvest, capital gains automatically the IRS affairs tax on these capital gains until sale B a distribution that is a return of capital is not taxable to the shareholder C if investors, reinvest dividend distributions, automatically, that I rest to first taxation on the dividend until sale D a return of capital distribution should be taxed as either dividends or capital gains
B = a distribution that is a return of capital is not taxable to the shareholder
43, under the code of procedure, disciplinary action taken by FINRA, against a register representative can be all the following, except A suspension or termination of registration B arbitration C fine D censure
B = arbitration
15, which of the following information is summarized on a companies balance sheet A sales, expenses and profits over a given period of time B assets, liabilities, and shareholders equity C changes in inventory, accounts, receivable, and accounts payable D leverage profitability and market value
B = assets, liabilities, and shareholders equity
45, after I register representative has made a sale of a deferred variable annuity. When must a principal review the transaction A within two business days of the signing of the application B before application is transmitted to insurance company, and no later than seven days after customer signing C within seven days insurance company accepts application and the premium D within 10 business days after the application is accepted by the insurance company and the annuity is delivered to customer
B = before application is transmitted to insurance company, and no later than seven days after customer signing
14, according to the investment company in 1940, which of the following is not a type of investment company A units investment trust B brokerage firm C management company D face amount, certificate, company
B = brokerage firm
19, which statement about open end and close end management companies is true A open end companies offer their shares in a one time stock and redeemed the shares continually B closed end companies offer their shares in a one time stock, issuance while open end companies are the shows continuously C Open end Company offer their shares in a one-time stock issuance while close end companies, redeem their shares continuously D close, end companies offer those shares in a one time stock issuance and redeem their shares continuously
B = closed end companies offer their shares in a one time stock, issuance while open end companies are the shows continuously
9, your customer identifies income as his main investment goal, which of the following most important to this customer A avoiding losses B dividends, and interest payments C achieving gains D socially conscious investments
B = dividends, and interest payments
16, what's the following would be the most likely investment strategy of a target date fund A treasury securities in the earlier period And investment grade bonds in the later period B equities in the earlier period and AAA corporate bonds in the later period C large cap stocks in earlier period and a small cap stocks in the later period D mix of equities and bonds in the earlier period And more equities than bonds in the later period
B = equities in the earlier period and AAA corporate bonds in the later period
42, when will FINRA require a member firm to tape its phone conversation A under no circumstances B if the member hires too many representatives from a firm that is tainted C if the member firm is not current in its SEC filing D if the member firm requires too many customer accounts from another member
B = if the member hires too many representatives from a firm that is tainted
24, January 1 customer bought 1000 shares February 1 invest Manager , the fun liquidity, the funds holding for profit. The fund had the stock for three years and made its annual capital gain distribution to shareholders what income tax consequences on this distribution to customer. A short term capital gain B long-term capital gain C ordinary income D passive income
B = long-term capital gain
33, confirmation of a trade must be received by the customer__________ A no later than the end of the trading day B no later than the settlement date C within three business days D same day for electronic confirmations, and within 30 days for paper confirmations
B = no later than the settlement date
20, hey customer Heritage shares of ACME fund from his uncle uncle pay $12 for share in 2010 at the time the uncle's death in 2024 the shares are valued at $17 each. The customer redeemed the shares four months later for $18 a share the tax consequence of the redemption is. A one dollar per share short term capital gain B one dollar per share long-term capital gain C six dollars per share short term capital gain D six dollars per hour long-term capital gain
B = one dollar per share long-term capital gain
1, which of the following is not a method of purchasing an annuity A single payment immediate annuity B periodic payment immediate annuity C single payment, deferred annuity D periodic payment deferred annuity
B = periodic payment immediate annuity
39, which document is a supplement to the prospectus, for mutual fund is made available only upon request to shareholders A annual report B statement of additional information C registration statement D letter of intent
B = statement of additional information
21, registered representative, often assist, elderly clients, underlying information in the prospectus when making a mutual fund presentations the clients who are mainly novice investors appreciate this which statement is true about this situation A register representative may mark the prospectus for novice investors in effort to help them, understand the investment B the representative, violated SEC and industry rules by marking the prospectus C the representative kindly mark the prospectus with his supervisors approval D the representative may highlight sections of the prospectus only in response to a client request
B = the representative, violated SEC and industry rules by marking the prospectus
34, which of these issued with a strike price wall above the price of the underlying stock can be exercised years later A rights B warrants C calls D puts
B = warrants
29, which statement about class B shares is appropriate A these shares have lower ongoing cost compared to Class a offering B these shares are effectively no loads if you hold investments for at least seven years C all of your money goes to work since there's no upfront sales charge D class B shares are best for large buyers since the breakpoint from dollar one is 0%
C = all of your money goes to work since there's no upfront sales charge
3, Roger makes an ad that says 8% return in a separate account. It is hypothetical and does not predict results. after Roger files, an ad with FINRA advertising regulation department, he receives a letter that the communication is out of compliance will mistake. Did he make? A hypothetical rates of return can never be higher than 7.5% B he needed to include the website of FINRA, disclosures statement about the use of hypotheticals C he did not include a hypothetical, showing a 0% rate of return D hypotheticals need to show at least three different rates of return
C = he did not include a hypothetical, showing a 0% rate of return
26, what's the following annuity payment options will continue payments to another person for their life after the annuitant dies A life annuity B life annuity with period certain C joint and last survivor annuity D unit refund annuity
C = joint and last survivor annuity
30, prospectus must accompany, or proceeded a A written invitation to attend an investment seminar featuring mutual fund investments B generic brochure sent to regular customers, describing the advantage of investing in mutual funds C representative, making a face-to-face sales presentation of mutual funds to customer D television, ad about investing in a money market fund
C = representative, making a face-to-face sales presentation of mutual funds to customer
38, which of the following documents is made available to mutual fund investors only upon request A financial statements of the fund B prospectus C statement of additional information D schedule of breakpoint
C = statement of additional information
27, for which of the following investors is a Ginny Mae pass-through certificate suitable A the investors in a high tax bracket, and once tax-free income, with safety of principle and low reinvestment risk B the investor wants maximum total return, and is willing to take additional risk to achieve high total return C the investor has a large portfolio and interested in a high-level of monthly income with safety of principal D the investor wants to invest amount for growth and with income tax
C = the investor has a large portfolio and interested in a high-level of monthly income with safety of principal
25, all the following events will require a rich representative to mend their U4 form, except A the representative gets married and changes their name B the representative moves to a new residence address C the representative is sued for divorce by their spouse D representative declares personal bankruptcy
C = the representative is sued for divorce by their spouse
6, FINRA, requires members to maintain records of all communications of the public for period of A three years from first use B six years from first use C three years from last use D six years from last use
C = three years from last use
41, under federal law, barring an extension request the latest that a customer can pay for security purchase is A the business day, following trade date B three business days following trade date C two business days after settlement D 10 business days following trade date
C = two business days after settlement
36, regular way settlement for corporate securities is A the same day as the trade date B one business day after the trade date C two business days after the trade date D five business days after the trade date
C = two business days after the trade date
35, fun, firm, brokerage, and member firm is having a sales contest for sales persons to sell shares of QWERT mutual fund for $100 generated in broker commissions they are entered in a prize drawing for free cruise based on FINRA rules is this violation A yes, because a member firm is not permitted to have a sales contest B no because the contest is random based on a drawing C yes because fun firm may not give sales person incentive to sell shares of any specific investment company based on brokerage commissions D no because the contest is between sales persons which is considered registered person
C = yes because fun firm may not give sales person incentive to sell shares of any specific investment company based on brokerage commissions
10, member firms that wish to recommend deferred variable annuities must inform the customer in general terms about all the following, except A whether there is a surrender period or a surrender charge B potential tax penalty at the customer, sell a redeems the shares prior to the age of 59.5 C mortality, and expense fees D 12b-1 fees
D = 12b-1 fees
32, cory Spence, as defined by FINRA consist of any writing, and clearly Tronic communication that is distributed or made available to A 30 perspective retail customers that in 30 day calendar period B one or more of its existing retail customers C fewer than 25 perspective retail customers within any 60 day calendar period D 25 or fewer retail investors within any 30 day calendar period
D = 25 or fewer retail investors within any 30 day calendar period
13, a client who would like his or her investments to outpatient inflation, has an objective of A income B liquidity C speculation D growth
D = growth
40, the FINRA, suitability role requires all the following, except A reasonable basis, suitability B customer specific suitability C quantitative suitability D qualitative suitability
D = qualitative suitability
7, another term for a pulmonary prospectus is A S1 form. B tombstone ad C underwriter disclosure D red herring
D = red herring
18, recommendation of the use of dollar cost averaging requires disclosure of all the following, except A the plan does not assure a profit B dollar cost averaging requires periodic investment, regardless of market conditions C an investor must consider his ability to continue making investments in a decline market D the plan of protect investors from losses and declining market
D = the plan of protect investors from losses and declining market
5, if an investor receives a summary perspective at the time of purchasing mutual fund, what is required for making the statutory prospectus available A the statutory prospectus need not to be made available to the investors since the summary prospectus covers all information. The investor needs to know. B statutory prospectus must be made available within 10 business days of the fund purchase C the statutory perspective must be delivered at the same time as the summary prospectus D the statutory prospectus must be readily available online
D = the statutory prospectus must be readily available online
