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FINRA Series6 Exam Overview:

FINRA Series6 Exam Syllabus Topics:

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

1. Tex Payor purchased his shares of Invest4U Mutual Fund 30 days prior to its ex-dividend date. In order
for any dividends he receives from the fund to be qualified, Tex cannot sell his shares until:

A) twelve months after the settlement date of his purchase.
B) thirty-one days after the fund's ex-dividend date.
C) one day after the fund's ex-dividend date.
D) six months after the settlement date of his purchase.

2. Joel has a 28-year-old client who has been promoted to the elevated position of senior software engineer
with a large, well-known, software company at her relatively young age. She has come to Joel for
investment advice, explaining to him that she is risk-averse, having been influenced by parents who grew
up in a foreign country and had little, prior to immigrating to America and working hard to achieve their
dreams for themselves and their children. She has $50,000 that she wants him to invest for her, and her
primary goal is to be able to have enough
money, beyond what she expects to have in her employer's retirement program, to return to her home
country and help others achieve their dreams. Joel explains to her that she may have to invest in riskier
securities in order to achieve her goal, but his client is adamant that she wants her portfolio to be invested
to target growth with the least risk exposure possible. Given the facts:

A) Joel should invest his client's monies in a fund that specializes in stocks of his client's home country to
avoid the exchange rate risk that she will be exposed to when she returns.
B) Joel should invest his client's monies in a growth fund to target her growth objective.
C) Joel should invest his client's monies in a U.S. government bond fund since she is risk-averse.
D) Joel should divide his client's monies among growth, aggressive growth, and foreign stock funds.
Regardless of what she says, she has a long investment horizon and can afford to take on more risk.

3. Which of the following statements regarding closed-end investment companies is false?

A) The closed-end investment company does not pay taxes on the dividend and capital gain income it
earns and distributes to its shareholders.
B) Closed-end companies may be either diversified or non-diversified.
C) Shares of a closed-end company may sell for below the fund's net asset value.
D) A closed-end investment company may not issue preferred stock.

4. Under FINRA rules, the variable contract sales agreement must specify that any sales commission is to
be returned to the insurance company if the buyer terminates the contract within:

A) 5 business days.
B) 10 business days.
C) 7 business days.
D) one week.

5. The totalreturn reported by a mutual fund:

A) includes both the dividend and interest income earned by the fund and any increase in the fund's net
asset value.
B) is calculated as the percentage change in the net asset value of the fund.
C) is equal to the return it earned on the dividend and interest income it received from its investments.
D) is equal to the annual percentage increase in the dollars invested in the fund by investors.

Solutions: