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FINRA Series6 Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Provides Customers with Information About Investments, Makes Recommendations, Transfers Assets and Maintains Appropriate Records | 50% | - Investment company products: mutual funds, UITs, closed-end funds - Recordkeeping and disclosure requirements - Retirement plans and 529 savings plans - Product features, risks, costs, and tax considerations - Suitability rules and recommendations - Variable contracts: variable annuities, variable life insurance |
| Obtains and Verifies Customers’ Purchase and Sales Instructions; Processes, Completes and Confirms Transactions | 10% | - Order entry and processing procedures - Error resolution and correction procedures - Payment and settlement processes - Trade confirmations and account statements |
| Opens Accounts After Obtaining and Evaluating Customers’ Financial Profile and Investment Objectives | 16% | - Anti-money laundering (AML) and compliance - Customer identification and verification - Account types and registration - Financial profile and investment objectives assessment |
| Seeks Business for the Broker-dealer from Customers and Potential Customers | 24% | - Telemarketing and solicitation rules - Prospecting and identifying customer needs - Communications with the public and regulatory rules - Advertising and sales literature regulations |
FINRA Investment Company and Variable Contracts Products Representative Examination (IR) Sample Questions:
1. The entity that serves as the auctioneer for trades conducted on an organized exchange floor is known as
a:
A) floor broker.
B) registered trader.
C) specialist.
D) commission broker.
2. Which of the following statements regarding CMOs is false?
A) CMO investors are divided into classes, and the class determines when the investor will receive
payments of principal.
B) CMOs are zero-coupon bonds that are backed by real estate.
C) Relative to other bonds, CMOs are illiquid.
D) CMOs are considered to have lower risk and, therefore, offer lower returns.
3. When the U.S. dollar appreciates relative to other world currencies,
I. the prices of all domestic stocks and bonds can be expected to increase.
II. the prices of securities offered by manufacturers that import a lot of their parts can be expected to
increase.
III. an increase in the purchase of U.S. securities by foreign investors can be expected.
A) II only
B) I and II only
C) III only
D) I, II, and III
4. The profile of the Invesco Utilities Fund stipulates that 80% of its funds will normally be invested in stocks
of firms in utilities-related industries. This suggests that the Invesco Utilities Fund is:
A) a non-diversified investment company.
B) a sector fund.
C) both A and B.
D) an asset allocation fund.
5. Which of the following statements regarding callable bonds is false?
A) Callable bonds offer a higher yield than non-callable bonds, all else equal.
B) Investors in callable bonds are subject to prepayment risk.
C) The issuer of a callable bond is most likely to redeem the bond early when interest rates fall.
D) A callable bond protects the investor by allowing him to sell his bond back to the issuer and invest in
another, similar-risk bond that pays a higher rate of interest should the investor choose to do so.
Solutions:
| Question # 1 Answer: C | Question # 2 Answer: B | Question # 3 Answer: A | Question # 4 Answer: B | Question # 5 Answer: D |








