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FINRA Series6 Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Seeks Business for the Broker-dealer from Customers and Potential Customers | 24% | - Telemarketing and solicitation rules - Advertising and sales literature regulations - Communications with the public and regulatory rules - Prospecting and identifying customer needs |
| Topic 2: Provides Customers with Information About Investments, Makes Recommendations, Transfers Assets and Maintains Appropriate Records | 50% | - Investment company products: mutual funds, UITs, closed-end funds - Suitability rules and recommendations - Retirement plans and 529 savings plans - Variable contracts: variable annuities, variable life insurance - Product features, risks, costs, and tax considerations - Recordkeeping and disclosure requirements |
| Topic 3: Opens Accounts After Obtaining and Evaluating Customers’ Financial Profile and Investment Objectives | 16% | - Financial profile and investment objectives assessment - Anti-money laundering (AML) and compliance - Customer identification and verification - Account types and registration |
| 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 is not a potential advantage associated with investing through a mutual fund?
A) diversification
B) simplified recordkeeping
C) price discovery
D) lower cost associated with portfolio management
2. The stock of Southwest Airlines (LUV) is selling for $11.77 in mid-September. An October put on the stock
is selling for $1.45 and gives the owner the right to sell the stock for $13.00 prior to its expiration. In this
example, the option premium is:
A) $11.77.
B) $1.23.
C) $13.00.
D) $1.45.
3. Which of the following statements about specialists is false?
A) In addition to acting as market makers, specialists also act as agents and execute limit orders placed
by commission brokers for their clients if the specified price is reached.
B) Specialists are market makers in assigned stocks and, as such, can profit from these investments.
C) Specialists are required to maintain a fair and orderly market in their assigned stocks, meaning that
they must buy if there is an excess of sell orders and sell out of their own portfolios if there is an excess of
buy orders.
D) Specialists are employees of the exchange on which they oversee trades.
4. A fund's transfer agent is responsible for:
I. calculating and distributing the capital gain and dividend income of the fund.
II. mailing shareholder account statements.
III. paying fund expenses.
A) I and II only
B) I, II, and III
C) I only
D) II only
5. Ms. Newbie is a newly-minted registered representative. Mr. Oldman saunters into her office, becomes
infatuated with her, opens an account, and signs a document giving Ms. Newbie discretionary authority
over the account. Mr. Oldman is 68 years old, retired, lives on a fixed income, and pays taxes at the
lowest marginal tax rate available. His stated investment objectives are capital preservation and income.
Ms. Newbie invests 1/4 of his investment monies in a periodic-payment, deferred, variable annuity. Based
on these facts:
A) Ms. Newbie has a reasonable sexual harassment case against Mr. Oldman for putting her in such a
position.
B) Although Ms. Newbie's asset allocation for Mr. Oldman is less than optimal, she is in no danger of
losing her license or any other penalty, given that she has been given discretionary authority over the
account.
C) Ms. Newbie may lose her license before she gets started in the business for making an unauthorized
transaction.
D) Ms. Newbie has done a remarkable job as a newly-minted representative of allocating at least a fourth
of Mr. Oldman's funds appropriately.
Solutions:
| Question # 1 Answer: C | Question # 2 Answer: D | Question # 3 Answer: D | Question # 4 Answer: A | Question # 5 Answer: C |






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