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FINRA Series6 Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Provides Customers with Information About Investments, Makes Recommendations, Transfers Assets and Maintains Appropriate Records | 50% | - Recordkeeping and disclosure requirements - Suitability rules and recommendations - Retirement plans and 529 savings plans - Product features, risks, costs, and tax considerations - Variable contracts: variable annuities, variable life insurance - Investment company products: mutual funds, UITs, closed-end funds |
| Topic 2: Opens Accounts After Obtaining and Evaluating Customers’ Financial Profile and Investment Objectives | 16% | - Customer identification and verification - Financial profile and investment objectives assessment - Anti-money laundering (AML) and compliance - Account types and registration |
| Topic 3: Seeks Business for the Broker-dealer from Customers and Potential Customers | 24% | - Telemarketing and solicitation rules - Communications with the public and regulatory rules - Prospecting and identifying customer needs - Advertising and sales literature regulations |
| Topic 4: Obtains and Verifies Customers’ Purchase and Sales Instructions; Processes, Completes and Confirms Transactions | 10% | - Trade confirmations and account statements - Order entry and processing procedures - Payment and settlement processes - Error resolution and correction procedures |
FINRA Investment Company and Variable Contracts Products Representative Examination (IR) Sample Questions:
1. Which of the following formulae is used to calculate the net dividend income per share of a mutual fund?
A) Add dividends, interest, and short-term and long-term capital gains earned by the fund; subtract
operating expenses; then divide the result by the number of outstanding shares.
B) Divide gross investment income by the number of outstanding shares.
C) Subtract operating expenses from dividend and interest income and divide the result by the number of
outstanding shares.
D) Subtract operating expenses from the income derived from dividends, interest, and short-term capital
gains earned by the fund and divide the result by the number of outstanding shares.
2. Given the same maturity, which of the following debt instruments would you expect to offer the highest
yield-to-maturity?
A) a U.S. Treasury bond
B) a general obligation bond issued by the state of Massachusetts
C) a bond issued by the Federal Home Loan Bank Board
D) a debenture issued by Abbott Laboratories
3. 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 in stocks that are expected to experience high growth
B) a municipal bond fund
C) a fund that invests almost exclusively in high-tech stocks
D) a fund that invests in both foreign and domestic stocks
4. After three warnings, Honest Broker-Dealer was forced to terminate Sly Conman, one of its
representatives, for making inaccurate statements when offering its mutual fund products to customers.
After his registration is terminated:
A) Mr. Conman remains under the jurisdiction of FINRA for a period of 2 years.
B) Mr. Conman can apply for reinstatement of his license after 6 months, but will have to pay any
applicable fees and retake a test.
C) Mr. Conman remains under the jurisdiction of FINRA for a period of 1 year.
D) Mr. Conman can apply for reinstatement of his license after 12 months.
5. An ADR is:
A) a certificate of deposit offered by a foreign bank that is denominated in U.S. dollars.
B) another name for bankers' acceptances.
C) a receipt designating ownership of shares of a foreign stock that are held in a trust.
D) a bond issued by an American firm that is denominated in dollars, but is sold to foreign investors.
Solutions:
| Question # 1 Answer: C | Question # 2 Answer: D | Question # 3 Answer: B | Question # 4 Answer: A | Question # 5 Answer: C |





