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FINRA Series6 Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Provides Customers with Information About Investments | 50% | - Investment company securities and variable contracts
|
| Obtains and Verifies Customers' Purchase and Sales Instructions | 10% | - Order processing and transaction procedures
|
| Opens Accounts After Obtaining and Evaluating Customer Financial Profile | 16% | - Customer account types and documentation
|
| Seeks Business for the Broker-Dealer from Customers and Potential Customers | 24% | - Prospecting and communication with clients
|
FINRA Investment Company and Variable Contracts Products Representative Examination (IR) Sample Questions:
1. Ken has a variable life policy and recently learned that he can borrow against its cash value to help pay
for some of the expenses he's incurring while pursuing a graduate degree. Which of the following
statements about the loan he can get is true?
A) Ken never has to repay the loan, but if he chooses not to do so, his wife, Barbie, won't get as much
when he dies.
B) Ken can borrow at most only 50% of the cash value, and only as long as he's had the policy for at least
three years.
C) Ken has been misinformed. He cannot borrow against the cash value of a variable life policy because
the cash values of these policies fluctuate constantly.
D) Since Ken is essentially borrowing his own money, the loan is interest-free.
2. Which of the following would not be a characteristic associated with stocks in which a growth fund might
invest?
A) beta > 1.0
B) high price-earnings (P/E) ratio
C) high cash dividends
D) high earnings growth
3. Which of the following statements regarding insider trading penalties is true?
A) Any contemporaneous trader who has lost money due to an illegal insider trade may sue the violator
for both the amount of his losses and pain and suffering, as determined by the court.
B) Both A and C are true statements.
C) A broker-dealer who is found to have provided inadequate supervision over an agent who is found
guilty of insider trading is also subject to insider trading penalties.
D) The SEC may seek both civil and criminal penalties against an individual who is found guilty of insider
trading.
4. 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 municipal bond fund
B) a fund that invests almost exclusively in high-tech stocks
C) a fund that invests in both foreign and domestic stocks
D) a fund that invests in stocks that are expected to experience high growth
5. NASDAQ market makers provide investors with assurance that:
A) the investor will be able to buy or sell the security at a price he desires.
B) the investor will be investing in a high quality investment with relatively low risk.
C) there is a market for the listed security.
D) NASDAQ market makers provide investors with no assurance whatsoever. It is "buyer beware."
Solutions:
| Question # 1 Answer: A | Question # 2 Answer: C | Question # 3 Answer: B | Question # 4 Answer: A | Question # 5 Answer: C |


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