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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% | - Communications with the public and regulatory rules - Advertising and sales literature regulations - Prospecting and identifying customer needs - Telemarketing and solicitation rules |
| Topic 2: Opens Accounts After Obtaining and Evaluating Customers’ Financial Profile and Investment Objectives | 16% | - Financial profile and investment objectives assessment - Account types and registration - Anti-money laundering (AML) and compliance - Customer identification and verification |
| Topic 3: 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 - Product features, risks, costs, and tax considerations - Recordkeeping and disclosure requirements - Variable contracts: variable annuities, variable life insurance - Retirement plans and 529 savings plans |
| Topic 4: Obtains and Verifies Customers’ Purchase and Sales Instructions; Processes, Completes and Confirms Transactions | 10% | - Error resolution and correction procedures - Payment and settlement processes - Trade confirmations and account statements - Order entry and processing procedures |
FINRA Investment Company and Variable Contracts Products Representative Examination (IR) Sample Questions:
1. Your client bought a variable annuity contract that has a 5% contingent deferred sales charge with a
7 -year surrender period four years ago. He has been reading about bonus annuities and 1035 exchanges
and has asked for your advice. You can tell him:
A) that it's a great idea, and you plan on how you're going to spend the unexpected income.
B) that he'll have to pay the 5% deferred sales charge if he executes the exchange.
C) that although the exchange doesn't have any tax consequences, he'll be looking at a new, longer,
surrender period.
D) both B and C.
2. Private placements may be sold to whom?
A) to as many as 35 non-accredited investors.
B) to only 35 investors.
C) only to accredited investors.
D) only to institutional investors.
3. Which of the following steps in the underwriting process will occur last?
A) A red herring prospectus is circulated to the public.
B) The selling group is organized.
C) The public offering price is set.
D) The underwriting syndicate is formed.
4. Glamourless Fund is a value fund. As such, it invests primarily in stocks with:
A) high price-earnings ratios.
B) low cash dividend yields.
C) high betas.
D) low earnings growth rates.
5. In mid-September, the stock of Oracle (ORCL) is selling for $25.60 a share. Ms. Hedge owns shares of
Oracle and buys a put option on the stock with a strike price of $27 that expires in October for $2.20 per
optioned share. Just prior to expiration, Oracle's stock is selling for $29. Ms. Hedge should:
A) let her option expire worthless.
B) exercise her option and sell Oracle for $27 a share.
C) exercise her option and buy more shares of Oracle for $27 a share.
D) exercise her option and sell Oracle for $29 a share.
Solutions:
| Question # 1 Answer: D | Question # 2 Answer: A | Question # 3 Answer: C | Question # 4 Answer: D | Question # 5 Answer: A |






