Series 6 Practice Test – Career Employer Test Prep

Welcome to your Series 6 Practice Test

This test is designed to prepare you mentally for the actual Series 6 Exam with (100 questions).

The Series 6 Exam is broken down into four (4) Parts.

Here are the Four (4) Domains of the Series 6 Exam with the weightage and number of questions in this practice exam:

1. Seeks Business for the Broker-Dealer from Customers and Potential Customers [24 Questions] - 24%

2. Opens Accounts after Obtaining and Evaluating Customers' Financial Profile and Investment Objectives [16 Questions] - 16%

3. Provides Customers with Information about Investments, Makes Recommendations, Transfers Assets and Maintains Appropriate Records [50 Questions] - 50%

4. Obtains and Verifies Customers’ Purchase and Sales Instructions and Agreements; Processes, Completes, and Confirms Transactions [10 Questions] - 10%

Please click NEXT to start your Free Series 6 PRACTICE TEST right away.

Best of Luck!

Series 6, Obtains and Verifies Customers’ Purchase and Sales Instructions; Processes, Completes and Confirms Transactions,Series 6

A railroad company pledges its railroad cars as collateral for a bond offering. This bond would be issued as

A) a sale-leaseback bond.

B) a collateral trust certificate.

C) a unit secured trust.

D) an equipment trust certificate.

None

1 out of 100

Series 6, Obtains and Verifies Customers’ Purchase and Sales Instructions; Processes, Completes and Confirms Transactions,Series 6

An investor would like to make a long-term investment in a debt security whose duration is equal to its maturity. Which of the following AAA-rated bonds should her registered representative recommend?

A) XYZ zero-coupon bond maturing in 5 years

B) MNO zero-coupon bond maturing in 8 months

C) ABC 8% 10-year bond maturing in 5 years

D) DEF 10-year 8% bond maturing in 8 months

None

2 out of 100

Series 6, Obtains and Verifies Customers’ Purchase and Sales Instructions; Processes, Completes and Confirms Transactions,Series 6

Which of the following is allowed during the cooling-off period?

A) Sales literature may be distributed with the red herring.

B) A preliminary prospectus may be given to prospective investors.

C) Tombstone advertisements may not be published.

D) Indications of interest received are with a specified deposit.

None

3 out of 100

Series 6, Obtains and Verifies Customers’ Purchase and Sales Instructions; Processes, Completes and Confirms Transactions,Series 6

A customer requests information on a variable life insurance policy and asks her registered representative to circle the important information in the prospectus and information he thinks will be of special interest to her. This is

A) allowed if accompanied by an unmarked prospectus.

B) not permitted.

C) allowed if approved by a principal.

D) good customer service.

None

4 out of 100

Series 6, Obtains and Verifies Customers’ Purchase and Sales Instructions; Processes, Completes and Confirms Transactions,Series 6

A securities firm that holds rather than sells stock is

A) pegging.

B) churning.

C) taking a position.

D) commingling.

None

5 out of 100

Series 6, Obtains and Verifies Customers’ Purchase and Sales Instructions; Processes, Completes and Confirms Transactions,Series 6

Listed securities primarily trade in which of the following venues?

A) Primary market

B) Over-the-counter

C) Third market

D) Exchanges

None

6 out of 100

Series 6, Obtains and Verifies Customers’ Purchase and Sales Instructions; Processes, Completes and Confirms Transactions,Series 6

A resident of a state who acquires stock pursuant to Rule 147 (intrastate offerings) is prohibited from selling the stock to a nonresident of that state for how many months?

A) 18

B) 6

C) 9

D) 12

None

7 out of 100

Series 6, Obtains and Verifies Customers’ Purchase and Sales Instructions; Processes, Completes and Confirms Transactions,Series 6

Corporations issue commercial paper with maturities ranging from as little as one day to as long as how many days?

A) 365 days

B) 270 days

C) 7 days

D) 90 days

None

8 out of 100

Series 6, Obtains and Verifies Customers’ Purchase and Sales Instructions; Processes, Completes and Confirms Transactions,Series 6

When an option is trading, all of the following are fixed except

A) the premium.

B) the underlying security.

C) the expiration date.

D) the strike price.

None

9 out of 100

10.

Series 6, Obtains and Verifies Customers’ Purchase and Sales Instructions; Processes, Completes and Confirms Transactions,Series 6

As a registered representative you know that red herring is another term for

A) a preliminary prospectus.

B) a final prospectus.

C) a tombstone advertisement.

D) a registration statement.

None

10 out of 100

11.

Series 6, Provides Customers with Information About Investments, Makes Recommendations, Transfers Assets and Maintains Appropriate Records,Series 6

Typically, no-load mutual funds are sold to the public in which of the following ways?

A) The fund sells to investors through their custodian bank.

B) The fund sells to a broker-dealer with which it has a selling agreement, which in turn sells to the investor.

C) The fund sells directly to the investor.

D) The fund sells to an annuity, which in turn sells to the investor.

None

11 out of 100

12.

Series 6, Provides Customers with Information About Investments, Makes Recommendations, Transfers Assets and Maintains Appropriate Records,Series 6

A contractual plan company is what type of investment company?

A) Closed-end company

B) Unit investment trust

C) Face-amount certificate company

D) Mutual fund

None

12 out of 100

13.

Series 6, Provides Customers with Information About Investments, Makes Recommendations, Transfers Assets and Maintains Appropriate Records,Series 6

The KPF Growth Fund charges no redemption fee. An investor brings 200 shares to your firm for redemption. The next quote on the fund is NAV $9.15, POP $10.00. If liquidated by the firm without charge, what would he receive for his shares?

A) $1,000

B) $2,000

C) $915

D) $1,830

None

13 out of 100

14.

Series 6, Provides Customers with Information About Investments, Makes Recommendations, Transfers Assets and Maintains Appropriate Records,Series 6

Your customer is interested in income that is as free of default risk as possible. Which of the following funds would you consider suitable to recommend to him?

A) The Ellis Government Bond Fund

B) A balanced fund that purchases only AA-rated bonds or higher

C) A fund that specializes in municipal revenue bonds

D) The Topley Investment-Grade Corporate Bond Fund

None

14 out of 100

15.

Series 6, Provides Customers with Information About Investments, Makes Recommendations, Transfers Assets and Maintains Appropriate Records,Series 6

Open-end investment company shares normally go ex-dividend on what date?

A) Two business days before the record date

B) The settlement date

C) The record date

D) A date determined by the investment company board of directors

None

15 out of 100

16.

Series 6, Provides Customers with Information About Investments, Makes Recommendations, Transfers Assets and Maintains Appropriate Records,Series 6

Which of the following is a key advantage of purchasing a variable annuity?

A) Tax deferral

B) Protection against market risk

C) Tax-free withdrawals

D) Minimal penalty for early withdrawal

None

16 out of 100

17.

Series 6, Provides Customers with Information About Investments, Makes Recommendations, Transfers Assets and Maintains Appropriate Records,Series 6

A retired public school teacher, age 65, has deposited a total of $10,000 into a nonqualified variable annuity, and her account's current value is $16,000. If she wishes to take a lump-sum withdrawal of the full amount, how much of this withdrawal is taxed at the ordinary income tax rate?

A) $6,000

B) $10,000

C) $0

D) $16,000

None

17 out of 100

18.

Series 6, Provides Customers with Information About Investments, Makes Recommendations, Transfers Assets and Maintains Appropriate Records,Series 6

John is the annuitant in a variable plan, and Sue is the beneficiary. Upon John's death during the accumulation period, Sue takes a lump-sum payment. What is her total tax liability?

A) The proceeds minus John's cost basis taxed as ordinary income at Sue's tax rate

B) The ordinary income on the proceeds over the cost basis plus 10% of the net gain (if any) if Sue is younger than 59½ years old

C) Entire amount taxed as ordinary income, because it is not life insurance

D) None, because it is the proceeds from a life insurance company

None

18 out of 100

19.

Series 6, Provides Customers with Information About Investments, Makes Recommendations, Transfers Assets and Maintains Appropriate Records,Series 6

If your customer, age 36, invested $1.2 million dollars with an insurance company to purchase an annuity that would begin payouts to him when he reached the age of 65, he would be purchasing

A) a delayed payment annuity.

B) a periodic payment, deferred annuity.

C) a single payment, immediate annuity.

D) a single payment, deferred annuity.

None

19 out of 100

20.

Series 6, Provides Customers with Information About Investments, Makes Recommendations, Transfers Assets and Maintains Appropriate Records,Series 6

Which of the following is guaranteed by a variable life policy?

A) No sales charge

B) Minimum separate account performance

C) Minimum death benefit

D) Cash value

None

20 out of 100

21.

Series 6, Provides Customers with Information About Investments, Makes Recommendations, Transfers Assets and Maintains Appropriate Records,Series 6

Which of the following statements describing the federal taxation of municipal bond fund distributions is true?

A) Dividend distributions are taxable; capital gains distributions are tax free.

B) Both dividend distributions and capital gains distributions are taxable.

C) Dividend distributions are tax free; capital gains distributions are taxable.

D) Both dividend distributions and capital gains distributions are tax free.

None

21 out of 100

22.

Series 6, Provides Customers with Information About Investments, Makes Recommendations, Transfers Assets and Maintains Appropriate Records,Series 6

Jim's Tech Fund receives $22 million in dividends and pays $2 million in expenses. At the end of the year the fund distributes $18.5 million as dividends to the fund's shareholders. The fund will pay taxes on how much of the net investment income?

A) $1.5 million

B) $22 million

C) $20.5 million

D) $20 million

None

22 out of 100

23.

Series 6, Provides Customers with Information About Investments, Makes Recommendations, Transfers Assets and Maintains Appropriate Records,Series 6

In order for an investor to realize a capital gain or loss,

A) a dividend must be distributed.

B) the investor must hold the security for more than one year.

C) a purchase must take place.

D) a sale must take place.

None

23 out of 100

24.

Series 6, Provides Customers with Information About Investments, Makes Recommendations, Transfers Assets and Maintains Appropriate Records,Series 6

In the prior year, your customer realized an $8,000 short-term capital loss and a $6,000 long-term capital gain. What are the tax results of these transactions?

A) No gains, and $2,000 in carry forward losses

B) They may reduce their income by $2,000

C) $2,000 in short-term capital losses to use against next year's gains

D) $2,000 long-term capital gain

None

24 out of 100

25.

Series 6, Provides Customers with Information About Investments, Makes Recommendations, Transfers Assets and Maintains Appropriate Records,Series 6

A non-qualified dividend will be taxed at what rate?

A) The investor's capital gains tax rate

B) The investor's ordinary income tax rate

C) Qualified dividends are not taxable

D) The same rate as interest payments

None

25 out of 100

26.

Series 6, Provides Customers with Information About Investments, Makes Recommendations, Transfers Assets and Maintains Appropriate Records,Series 6

Which of the following is considered to be the order of the stages in a business cycle?

A) Trough, contraction, expansion, peak

B) Prosperity, expansion, contraction, trough

C) Expansion, peak, contraction, trough

D) Contraction, trough, peak, expansion

None

26 out of 100

27.

Series 6, Provides Customers with Information About Investments, Makes Recommendations, Transfers Assets and Maintains Appropriate Records,Series 6

Loss of purchasing power has the greatest impact on which of the following investor profiles?

A) An investor in his 20s who spends all of his paycheck on video games

B) A young married couple who have a comfortable income and have just purchased their dream home

C) A 35-year-old investor who owns a portfolio of high-yield corporate bonds

D) An elderly person living on a fixed retirement income with little savings

None

27 out of 100

28.

Series 6, Provides Customers with Information About Investments, Makes Recommendations, Transfers Assets and Maintains Appropriate Records,Series 6

When recommending an investment to a customer, one of the most important items to consider is

A) market capitalization.

B) commission generated.

C) name of the investment.

D) investment performance.

None

28 out of 100

29.

Series 6, Provides Customers with Information About Investments, Makes Recommendations, Transfers Assets and Maintains Appropriate Records,Series 6

Beta coefficient is the measure of which of the following?

A) A security's expected performance in percentage terms

B) A stock's performance in relation to expectations

C) A security's volatility in relation to its historical values

D) A stock or portfolio's volatility in relation to the overall market (systematic risk)

None

29 out of 100

30.

Series 6, Provides Customers with Information About Investments, Makes Recommendations, Transfers Assets and Maintains Appropriate Records,Series 6

BuyStuff, Inc., is a NYSE listed big box retailer. BuyStuff stock has a beta coefficient of 1.2. If the S&P 500 goes up 5% the expected return for BuyStuff stock is which of these?

A) 5%

B) 6%

C) 7%

D) 4%

None

30 out of 100

31.

Series 6, Provides Customers with Information About Investments, Makes Recommendations, Transfers Assets and Maintains Appropriate Records,Series 6

Which of the following statements regarding the suitability of investment recommendations are true?

A) Only the client is responsible for learning about the investments that are purchased.

B) Growth and income mutual funds are suitable for all investors.

C) A client's investment objectives, prior investment experience, financial profile, and risk tolerance aid in determining suitability.

D) Suitability will tend to be the same within a given demographic.

None

31 out of 100

32.

Series 6, Provides Customers with Information About Investments, Makes Recommendations, Transfers Assets and Maintains Appropriate Records,Series 6

Which of the following would be found on a customer's income statement?

A) The customer's risk tolerance

B) The customer's income

C) The customer's 401(k) balance

D) The value of the customer's primary residence

None

32 out of 100

33.

Series 6, Provides Customers with Information About Investments, Makes Recommendations, Transfers Assets and Maintains Appropriate Records,Series 6

During a fact-finding interview with a potential client, your client information sheet is used to list detailed financial information. Which of the following items would be relevant in determining a prospect's net worth?

A) $78,000 current IRA balance

B) $225,000 annual income

C) Recently paid off $3,000 credit card balance

D) A potential inheritance

None

33 out of 100

34.

Series 6, Provides Customers with Information About Investments, Makes Recommendations, Transfers Assets and Maintains Appropriate Records,Series 6

In a fiduciary account with stated investment objectives of preserving capital and generating income, which of the following investment trading strategies is the most suitable?

A) Margin buying in a rising market

B) Buying Treasury bonds

C) Short-term trading in a volatile market

D) Buying into a large-cap index fund

None

34 out of 100

35.

Series 6, Provides Customers with Information About Investments, Makes Recommendations, Transfers Assets and Maintains Appropriate Records,Series 6

Your customer, age 60, is retired and living at home with a fully paid-off mortgage. Her portfolio contains growth stocks and high-quality bonds, and she is a longtime investor and comfortable with moderate risk. Her objective is a moderate level of current income to supplement her corporate pension plan distributions and the earnings from her IRA. Which of the following mutual funds is the most suitable for this customer?

A) QRS Capital Appreciation Fund

B) ABC Equity Income Fund

C) XYZ Biotechnology Fund

D) LMN Stock Index Fund

None

35 out of 100

36.

Series 6, Provides Customers with Information About Investments, Makes Recommendations, Transfers Assets and Maintains Appropriate Records,Series 6

Your 45-year-old client is interested in obtaining the highest current income possible from his investment. If he is willing to accept fluctuations in investment principal, which of the following would best suit this client's investment objective?

A) Balanced fund

B) High-yield bond fund

C) Aggressive growth fund

D) Tax-free money market fund

None

36 out of 100

37.

Series 6, Provides Customers with Information About Investments, Makes Recommendations, Transfers Assets and Maintains Appropriate Records,Series 6

In promoting a variable life insurance contract to a customer, which of the following statements would be permissible?

A) This product is a good investment for anyone wishing to provide for retirement.

B) Variable life insurance gets you a higher death benefit for less money.

C) If you already have a variable annuity, you can exchange it for this type of insurance with no adverse tax consequences.

D) This product gives you the possibility of a greater death benefit in exchange for accepting investment risk.

None

37 out of 100

38.

Series 6, Provides Customers with Information About Investments, Makes Recommendations, Transfers Assets and Maintains Appropriate Records,Series 6

Each of the following is considered an investment company except

A) unit investment trust.

B) bank investment advisory account.

C) face-amount certificate company.

D) open-end management company.

None

38 out of 100

39.

Series 6, Provides Customers with Information About Investments, Makes Recommendations, Transfers Assets and Maintains Appropriate Records,Series 6

A shareholder has $800 to invest in the ABC Technology Fund. If the shares are currently priced at $21.15 each, he can purchase how many shares?

A) 37, with $17.45 in change

B) None because the minimum trading unit is 100 shares

C) 37.825 shares

D) 38 shares

None

39 out of 100

40.

Series 6, Provides Customers with Information About Investments, Makes Recommendations, Transfers Assets and Maintains Appropriate Records,Series 6

Which of the following funds would be most suitable for a customer with moderate experience and risk tolerance seeking a portfolio to provide current income?

A) Small-cap stock mutual fund

B) Global Equity stock fund

C) Biotechnology fund

D) Preferred stock mutual fund

None

40 out of 100

41.

Series 6, Provides Customers with Information About Investments, Makes Recommendations, Transfers Assets and Maintains Appropriate Records,Series 6

A 28-year-old investor wishes to start saving for his daughter's college education. Which of the following would be the least appropriate investment vehicle for this plan?

A) Zero-coupon bond

B) 529 plan

C) Variable annuity

D) Coverdell ESA

None

41 out of 100

42.

Series 6, Provides Customers with Information About Investments, Makes Recommendations, Transfers Assets and Maintains Appropriate Records,Series 6

A customer who sold a bond at a loss must wait how long before he can buy back a substantially identical bond and not have the sale classified as a wash sale?

A) 31 days

B) No waiting period

C) 5 days

D) 20 days

None

42 out of 100

43.

Series 6, Provides Customers with Information About Investments, Makes Recommendations, Transfers Assets and Maintains Appropriate Records,Series 6

The Windmill Balanced Fund holds a mix of stocks and bonds. In the current year they received $500,000 in dividends from stocks and $600,000 in interest from bonds. Over the year they have had $100,000 in expenses. What is the fund's net investment income?

A) $1 million

B) $900,000

C) $1.1 million

D) $2.1 million

None

43 out of 100

44.

Series 6, Provides Customers with Information About Investments, Makes Recommendations, Transfers Assets and Maintains Appropriate Records,Series 6

During the accumulation period of a periodic payment deferred variable annuity, the number of accumulation units

A) increases and the value per unit varies.

B) remains fixed and the value per unit remains constant.

C) increases and the value per unit remains constant.

D) remains fixed and the value per unit varies.

None

44 out of 100

45.

Series 6, Provides Customers with Information About Investments, Makes Recommendations, Transfers Assets and Maintains Appropriate Records,Series 6

An analysis of the existing portfolio is important when doing which of the following?

A) Selecting new investments

B) All of these

C) Understanding a customer's circumstances

D) Understanding a customer's tolerance for risk

None

45 out of 100

46.

Series 6, Provides Customers with Information About Investments, Makes Recommendations, Transfers Assets and Maintains Appropriate Records,Series 6

When may a Series 6 registered representative sell shares of a closed-end fund?

A) Only when the shares are selling in the secondary market

B) In both the primary and secondary markets

C) Only when the shares are selling in the primary market

D) Series 6 representatives may not sell shares of a closed-end fund

None

46 out of 100

47.

Series 6, Provides Customers with Information About Investments, Makes Recommendations, Transfers Assets and Maintains Appropriate Records,Series 6

Who assumes the investment risk in a variable annuity contract?

A) The annuitant assumes the risk.

B) The insurance company assumes the risk.

C) There is no risk in a variable annuity.

D) The investment risk is shared between the insurance company and the annuitant.

None

47 out of 100

48.

Series 6, Provides Customers with Information About Investments, Makes Recommendations, Transfers Assets and Maintains Appropriate Records,Series 6

Under the 1940 Investment Company Act, an investment company may take all of the following forms except

A) a closed-end investment company.

B) a unit investment trust.

C) an open-end investment company.

D) a limited partnership with partners as passive investors.

None

48 out of 100

49.

Series 6, Provides Customers with Information About Investments, Makes Recommendations, Transfers Assets and Maintains Appropriate Records,Series 6

Your client, age 28, has just begun to consider investing outside of her employer's 401(k) plan. She's saved $25,000 to allocate toward some capital appreciation and some income. She prefers an investment with moderate risk and some downside protection if the stock market falls. With investing being new to her, she wants to note that she understands and is comfortable with moderate risk as stated, only. Given what has been conveyed, which of the following would be the most suitable?

A) Specialized fund

B) Equity index fund

C) Equity income fund

D) Balanced fund

None

49 out of 100

50.

Series 6, Provides Customers with Information About Investments, Makes Recommendations, Transfers Assets and Maintains Appropriate Records,Series 6

Which of the following activities are a registered representative's responsibilities?

A) Offering tax advice and assisting customers in completing tax returns

B) Determining the suitability of various investments for individual customers

C) Investing for customers based on their circumstances and objectives

D) Personally holding a customer's securities for a future transaction

None

50 out of 100

51.

Series 6, Provides Customers with Information About Investments, Makes Recommendations, Transfers Assets and Maintains Appropriate Records,Series 6

Once a variable annuity has been annuitized,

A) each annuity unit's value varies with time, but the number of annuity units is fixed.

B) the number of annuity units is fixed, and their value remains fixed.

C) each annuity unit's value is fixed, but the number of annuity units varies with time.

D) each annuity unit's value and the number of annuity units vary with time.

None

51 out of 100

52.

Series 6, Provides Customers with Information About Investments, Makes Recommendations, Transfers Assets and Maintains Appropriate Records,Series 6

Industries that tend to be highly sensitive to inflation, deflation, and the ups and downs of business trends would best be described as

A) defensive.

B) growth.

C) cyclical.

D) Keynesian.

None

52 out of 100

53.

Series 6, Provides Customers with Information About Investments, Makes Recommendations, Transfers Assets and Maintains Appropriate Records,Series 6

SEC rules require that open-end management companies distribute dividends to their investors from the firm's

A) portfolio earnings.

B) net investment income.

C) gross revenue.

D) capital gains.

None

53 out of 100

54.

Series 6, Provides Customers with Information About Investments, Makes Recommendations, Transfers Assets and Maintains Appropriate Records,Series 6

The cost basis of inherited shares are based upon which of the following?

A) The decedent's cost basis

B) The average of the value on the day of the decedent's death and the decedent's original cast basis

C) The average of the value on the date of death and the date the inheritor sells the position

D) The value of the stock on the day of the decedent's death

None

54 out of 100

55.

Series 6, Provides Customers with Information About Investments, Makes Recommendations, Transfers Assets and Maintains Appropriate Records,Series 6

Selling which of the following is not a violation of the Conduct Rules?

A) Government bonds to a client who insists on high returns

B) AAA bonds to a client who has income as an objective

C) Options to a client who desires long-term growth

D) Selling the same mutual fund to all of your clients

None

55 out of 100

56.

Series 6, Provides Customers with Information About Investments, Makes Recommendations, Transfers Assets and Maintains Appropriate Records,Series 6

Your customer has $200 per month of discretionary income and currently invests $200 monthly into a mutual fund. His daughter plans to enter college soon, and he would like to send her $100 monthly. Which of the following actions should you recommend to him?

A) Invest $200 monthly into the mutual fund and send all dividends to his daughter.

B) Invest $200 monthly into the mutual fund and redeem shares when needed.

C) Invest $100 monthly into the mutual fund and send his daughter $100 monthly.

D) Begin a systematic withdrawal program of $100 monthly.

None

56 out of 100

57.

Series 6, Provides Customers with Information About Investments, Makes Recommendations, Transfers Assets and Maintains Appropriate Records,Series 6

The Investment Company Act of 1940 requires that mutual funds pay dividends from their

A) gross income.

B) capital gains.

C) net investment income.

D) portfolio earnings.

None

57 out of 100

58.

Series 6, Provides Customers with Information About Investments, Makes Recommendations, Transfers Assets and Maintains Appropriate Records,Series 6

Which of the following explains that including noncorrelated assets in a portfolio can reduce certain risks?

A) Alpha coefficient

B) Beta coefficient

C) Capital asset pricing model (CAPM)

D) Modern portfolio theory (MPT)

None

58 out of 100

59.

Series 6, Provides Customers with Information About Investments, Makes Recommendations, Transfers Assets and Maintains Appropriate Records,Series 6

A representative that has reasonable grounds to believe that options are a suitable investment for a client should take which of these next steps?

A) Approve the account for option trading

B) Provide a suitable recommendation

C) Provide the customer an option disclosure document

D) Request approval for option trading for the account

None

59 out of 100

60.

Series 6, Provides Customers with Information About Investments, Makes Recommendations, Transfers Assets and Maintains Appropriate Records,Series 6

It is generally considered unsuitable to invest in securities using funds from which of the following?

A) Earnings

B) A defined contribution plan

C) An inheritance

D) Borrowing money against a home

None

60 out of 100

61.

Series 6, Opens Accounts After Obtaining and Evaluating Customers’ Financial Profile and Investment Objectives,Series 6

Addison is interested in opening an individual account but is concerned about what happens to the money if she should die. Specifically she wants the funds to go to a particular grandchild and not be part of the general distribution of the estate. Which of the following accounts would best meet Addison's needs?

A) An individual account with a transfer on death (TOD) designation

B) A tenants in common account with the adult grandchild

C) An LLC account with the adult grandchild as a signatory

D) A joint tenants with rights of survivorship with the adult grandchild

None

61 out of 100

62.

Series 6, Opens Accounts After Obtaining and Evaluating Customers’ Financial Profile and Investment Objectives,Series 6

A client and his spouse own shares in the ACE Fund as tenants in common. If each has a 50% ownership interest in the account and the client dies, what happens to the shares in the account?

A) Ownership of the shares would be determined by probate court.

B) His spouse would automatically own all the shares.

C) The account would have to be liquidated.

D) Fifty percent of the shares would belong to his spouse and the remaining half would be distributed to his estate.

None

62 out of 100

63.

Series 6, Opens Accounts After Obtaining and Evaluating Customers’ Financial Profile and Investment Objectives,Series 6

Communication rules under the Employee Retirement Income Security Act (ERISA) require that statements of account be provided to employees how often?

A) Annually

B) Every three years

C) Quarterly

D) Semi-annually

None

63 out of 100

64.

Series 6, Opens Accounts After Obtaining and Evaluating Customers’ Financial Profile and Investment Objectives,Series 6

Under what circumstances must an employee be given an opportunity to participate in a nonqualified deferred compensation plan?

A) The employee has worked full time for the company for at least one year.

B) The employee is not covered by an individual plan, such as an IRA or an annuity.

C) The company is the employee's only source of income.

D) It is solely up to the company who may participate in this type of plan.

None

64 out of 100

65.

Series 6, Opens Accounts After Obtaining and Evaluating Customers’ Financial Profile and Investment Objectives,Series 6

When and how often is your firm required to provide a privacy notice describing its privacy policies to customers?

A) Only when the customer indicates a change be made in information previously supplied

B) When a new account is opened and annually thereafter

C) Every third year after the account has been opened

D) When a new account is opened only

None

65 out of 100

66.

Series 6, Opens Accounts After Obtaining and Evaluating Customers’ Financial Profile and Investment Objectives,Series 6

The child of one of your recently deceased clients comes to your office with several properly signed stock certificates inherited from a parent. The child does not have an account and wishes to sell the securities. An account is opened for the purpose of the liquidation. Regulation S-P would refer to this child as

A) a customer.

B) a covered person.

C) a consumer.

D) a beneficiary.

None

66 out of 100

67.

Series 6, Opens Accounts After Obtaining and Evaluating Customers’ Financial Profile and Investment Objectives,Series 6

Lightning Bug Transport Corporation has undergone a change of the corporation's name. What forms are needed to reflect this name change on the company's account?

A) A letter of authorization from the board to make the change

B) A new account will need to be opened and the funds journal transferred

C) A new account under a new tax ID number will be required

D) A new account will need to be opened and the funds transferred via ACATs

None

67 out of 100

68.

Series 6, Opens Accounts After Obtaining and Evaluating Customers’ Financial Profile and Investment Objectives,Series 6

A person wishing to grant a registered representative the right to make investment decisions for his account does so by

A) providing a full power of attorney to someone other than the registered representative who will then instruct the representative as to investment decisions.

B) providing a limited power of attorney giving discretionary powers.

C) calling the representative each time he wants to place an order.

D) providing a letter from an attorney.

None

68 out of 100

69.

Series 6, Opens Accounts After Obtaining and Evaluating Customers’ Financial Profile and Investment Objectives,Series 6

Information received from a customer upon opening a new account must be confirmed with the customer when?

A) Within 30 days of account opening

B) No later than account opening

C) Within 60 days of account opening

D) Within 90 days of account opening

None

69 out of 100

70.

Series 6, Opens Accounts After Obtaining and Evaluating Customers’ Financial Profile and Investment Objectives,Series 6

A client and her spouse own shares in the ACE Fund as tenants in common. She has a 60% ownership interest in the account and her spouse has the balance. If the client dies, what happens to the shares in the account?

A) Her spouse would automatically own all the shares.

B) Fifty percent of the shares would belong to her spouse and the remaining half would be distributed to her estate.

C) Ownership of the shares would be determined by probate court.

D) Forty percent of the shares would belong to her spouse and the remaining balance would be distributed to her estate.

None

70 out of 100

71.

Series 6, Opens Accounts After Obtaining and Evaluating Customers’ Financial Profile and Investment Objectives,Series 6

When may a firm release nonpublic personal information to a nonaffiliated company?

A) When the customer has an opportunity to opt out

B) When the customer has chosen to opt out

C) When proper disclosures are made only

D) When proper disclosures are made to the customer and a customer has an opportunity to opt out

None

71 out of 100

72.

Series 6, Opens Accounts After Obtaining and Evaluating Customers’ Financial Profile and Investment Objectives,Series 6

Morgan and Mackenzie have a joint tenants with rights of survivorship account with your firm. Unfortunately Mackenzie passes away. Morgan would like the funds to be in his name only. What paperwork will the firm need to accomplish the task?

A) The firm may not make any changes to the account until estate paperwork is completed.

B) Morgan will need to provide a death certificate and a letter authorizing the removal of the decedent's name.

C) Morgan will need to open a new account and request a journal transfer of the assets to the new account.

D) Morgan will need to open a new account and complete a letter of authorization to transfer the assets.

None

72 out of 100

73.

Series 6, Opens Accounts After Obtaining and Evaluating Customers’ Financial Profile and Investment Objectives,Series 6

Rowan and Rory have a joint tenants with rights of survivorship account with your firm. Unfortunately Rory has passed away. Rowan would like the funds to be in individual only. What paperwork will the firm need to accomplish the task?

A) Rowan will need to open a new account and complete a letter of authorization to transfer the assets.

B) Rowan will need to open a new account and request a journal transfer of the assets to the new account.

C) The firm may not make any changes to the account until estate paperwork is completed.

D) Rowan will need to provide a death certificate and a letter authorizing the removal of the decedent's name.

None

73 out of 100

74.

Series 6, Opens Accounts After Obtaining and Evaluating Customers’ Financial Profile and Investment Objectives,Series 6

Employee Retirement Income Security Act (ERISA) rules on participation require that employers include employees age 21 or older and with

A) two years of service (4,000 hours).

B) two years of service (3,000 hours).

C) one year of service (2,000 hours).

D) one year of service (1,000 hours).

None

74 out of 100

75.

Series 6, Opens Accounts After Obtaining and Evaluating Customers’ Financial Profile and Investment Objectives,Series 6

Under Regulation S-P, nonpublic personal information would not include a customer's

A) Social Security number.

B) information collected through an internet cookie.

C) alma mater.

D) account balance.

None

75 out of 100

76.

Series 6, Opens Accounts After Obtaining and Evaluating Customers’ Financial Profile and Investment Objectives,Series 6

Contribution limits for qualified plans

A) are established by the government and adjusted periodically.

B) are established by the employer and are adjusted periodically.

C) are established by the employer and may not change after the plan is established.

D) are not set; there are no such limits.

None

76 out of 100

77.

Series 6, Seeks Business for the Broker-dealer from Customers and Potential Customers,Series 6

Filing at least 10 business days before first use is required for which of the following?

A) Literature prepared by the AGH Insurance Company highlighting the performance of its variable annuity separate accounts over the last 10 years

B) Retail communication that contains a ranking published by an independent entity

C) Correspondence

D) Mutual fund advertisements placed by a broker-dealer that became a member of FINRA 7 months ago

None

77 out of 100

78.

Series 6, Seeks Business for the Broker-dealer from Customers and Potential Customers,Series 6

Which of the following entities must receive a copy of retail communications to be used by a member firm in connection with the offering of investment company shares?

A) SEC

B) FINRA

C) FDIC

D) SIPC

None

78 out of 100

79.

Series 6, Seeks Business for the Broker-dealer from Customers and Potential Customers,Series 6

Which of the following entities must review retail communications for investment company shares prepared by principal underwriters?

A) Principal of the underwriting broker-dealer distributing the shares

B) OCC

C) SEC

D) NYSE

None

79 out of 100

80.

Series 6, Seeks Business for the Broker-dealer from Customers and Potential Customers,Series 6

Written recommendations prepared by a research department for dissemination to the public need prior approval of

A) a principal of the firm.

B) the DOE.

C) the appropriate SRO.

D) the SEC.

None

80 out of 100

81.

Series 6, Seeks Business for the Broker-dealer from Customers and Potential Customers,Series 6

How often are firms required to file a summary report of complaints that are withdrawn by the customer?

A) With FINRA every quarter

B) With the SEC annually

C) With the SEC quarterly

D) With FINRA annually

None

81 out of 100

82.

Series 6, Seeks Business for the Broker-dealer from Customers and Potential Customers,Series 6

When a registered representative receives a complaint the first step should be which of the following?

A) Provide the customer access to FINRA's website

B) Attempt to resolve the problem immediately

C) Forward the complaint to a firm principal

D) Wait for 24 hours to give the customer an opportunity to calm down

None

82 out of 100

83.

Series 6, Seeks Business for the Broker-dealer from Customers and Potential Customers,Series 6

How long after a written complaint is resolved must a record of the complaint be maintained?

A) Six years

B) Three years

C) Four years

D) Ten years

None

83 out of 100

84.

Series 6, Seeks Business for the Broker-dealer from Customers and Potential Customers,Series 6

To resolve a dispute FINRA prefers

A) arbitration before a code of procedure hearing.

B) arbitration before mediation.

C) arbitration before court proceedings.

D) mediation before arbitration.

None

84 out of 100

85.

Series 6, Seeks Business for the Broker-dealer from Customers and Potential Customers,Series 6

How long after termination must a member file Form U5?

A) Within 120 days

B) Within 60 days

C) Within 10 days

D) Within 30 days

None

85 out of 100

86.

Series 6, Seeks Business for the Broker-dealer from Customers and Potential Customers,Series 6

If a person unsuccessfully attempts the Series 6 exam, how long must they wait after the first attempt before attempting the exam again?

A) There is no waiting period

B) 60 days

C) 30 days

D) 180 days

None

86 out of 100

87.

Series 6, Seeks Business for the Broker-dealer from Customers and Potential Customers,Series 6

When filing a Form U5 a member must mark one of five reasons for the termination. Which of the following reasons would not require additional details surrounding the termination?

A) Permitted to resign

B) Discharged

C) Other

D) Voluntary

None

87 out of 100

88.

Series 6, Seeks Business for the Broker-dealer from Customers and Potential Customers,Series 6

When a representative terminates association with a member firm, the member files which of these to record the termination?

A) Form U4

B) Form U5

C) Form BD

D) Form ADV

None

88 out of 100

89.

Series 6, Seeks Business for the Broker-dealer from Customers and Potential Customers,Series 6

Which of the following would not be considered institutional communications with the public?

A) A communication with an individual designated to act on behalf of your institutional customer

B) An internal memo promoting a new product that will be offered to your firm's institutional customers only

C) A letter to another broker-dealer

D) A letter to a municipality offering your firm's services as an underwriter

None

89 out of 100

90.

Series 6, Seeks Business for the Broker-dealer from Customers and Potential Customers,Series 6

If a member firm has a dispute with one of its registered representatives, which of the following is true?

A) The representative's predispute arbitration agreement is renewed every January 1.

B) The dispute must be resolved via mediation.

C) The representative signed a predispute arbitration agreement upon completion of the U-4.

D) The dispute will be resolved in a court of law.

None

90 out of 100

91.

Series 6, Seeks Business for the Broker-dealer from Customers and Potential Customers,Series 6

All of the following would be subject to the Conduct Rules regarding public appearances except

A) an internet chat room.

B) a seminar discussing the products your firm has available for sale.

C) a presentation at a high school about mutual funds.

D) a radio spot saying that your offices have moved.

None

91 out of 100

92.

Series 6, Seeks Business for the Broker-dealer from Customers and Potential Customers,Series 6

Which of the following does not disqualify a person from associating with a member firm?

A) The person has been or is expelled or suspended from membership or participation in any other self-regulatory organization.

B) The person is under an SEC order denying, suspending, or revoking their registration.

C) The person is under an order of a foreign financial regulator denying, suspending, or revoking their registration.

D) The person was charged with felony fraud within the past 10 years.

None

92 out of 100

93.

Series 6, Seeks Business for the Broker-dealer from Customers and Potential Customers,Series 6

Which of the following persons would not need to be fingerprinted under regulatory requirements?

A) Devon, Alex's supervisor

B) Adrian, a file clerk handling new account paperwork

C) Blair, a new accounts specialist that opens accounts and processes initial deposits

D) Alex, a receptionist that processes incoming mail

None

93 out of 100

94.

Series 6, Seeks Business for the Broker-dealer from Customers and Potential Customers,Series 6

FINRA issues a complaint against ALFA Securities, a FINRA member firm, charging that the firm failed to adequately supervise one of its employees involved in a private placement. Which body of rules governs how this complaint will be handled?

A) Conduct Rules

B) Uniform Practice Code

C) Code of Arbitration Procedure

D) Code of Procedure

None

94 out of 100

95.

Series 6, Seeks Business for the Broker-dealer from Customers and Potential Customers,Series 6

How often must a member firm provide a copy of the FINRA procedures to its customers?

A) Annually

B) Every three years

C) Upon opening an account

D) When the customer requests it

None

95 out of 100

96.

Series 6, Seeks Business for the Broker-dealer from Customers and Potential Customers,Series 6

If a registered representative wishes to place an advertisement in a local newspaper offering her services as a mutual fund representative for XYZ Funds, the advertisement must be approved by

A) the SEC.

B) FINRA.

C) her branch office manager.

D) a registered principal.

None

96 out of 100

97.

Series 6, Seeks Business for the Broker-dealer from Customers and Potential Customers,Series 6

All of the following complaints have regulatory standing except

A) an email sent to a firm's general inbox.

B) a letter sent to a firm principal.

C) a letter sent to a firm registered representative.

D) a complaint delivered to a principal's voicemail.

None

97 out of 100

98.

Series 6, Seeks Business for the Broker-dealer from Customers and Potential Customers,Series 6

Retail communications apply to all of the following except

A) a billboard.

B) a public appearance.

C) an email sent to 30 existing customers.

D) a website.

None

98 out of 100

99.

Series 6, Seeks Business for the Broker-dealer from Customers and Potential Customers,Series 6

The registration of an associated person becomes effective after

A) passing the appropriate exam.

B) submission of Form U4.

C) successful completion of an interview with the member firm.

D) submission of Form U4 and passing the appropriate exam.

None

99 out of 100

100.

Series 6, Seeks Business for the Broker-dealer from Customers and Potential Customers,Series 6

Which of the following is not information needed to complete a Form U4?

A) Employment history

B) Aliases

C) Residential history

D) Marital Status

None

100 out of 100

Time is Up!

Time's up

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