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FINRA Series6 Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Obtains and Verifies Customers' Purchase and Sales Instructions | 10% | - Order processing and transaction procedures
|
| Topic 2: Seeks Business for the Broker-Dealer from Customers and Potential Customers | 24% | - Prospecting and communication with clients
|
| Topic 3: Provides Customers with Information About Investments | 50% | - Investment company securities and variable contracts
|
| Topic 4: Opens Accounts After Obtaining and Evaluating Customer Financial Profile | 16% | - Customer account types and documentation
|
FINRA Investment Company and Variable Contracts Products Representative Examination (IR) Sample Questions:
1. Which of the following statements regarding a letter of intent is true?
A) An investor has 12 months in which to invest the amount stipulated in the letter.
B) An investor who signs a letter of intent and does not invest the amount stipulated must make up the
difference between the sales charge he paid and what he should have paid, plus interest.
C) A letter of intent may be backdated up to 90 days so that any purchases made during that prior time
period will count toward making a breakpoint.
D) Reinvested dividends and capital gain distributions count toward the amount stipulated in the letter of
intent.
2. Which of the following is an example of market risk?
A) the risk that the nation will enter a recession
B) the risk that an automobile manufacturer will have to undertake a massive recall of its cars
C) the risk that a drug company will produce a pill that will cure cancer
D) the risk that competing firms will enter the market when a firm's patent protection expires
3. The compensation records that FINRA member firms are required to maintain must include which of the
following?
I. the names of the persons that have provided the compensation
II. names of the associated persons receiving the compensation
III. the amount of cash received
IV. the nature and value (if known) of any non-cash compensation received
A) II and III only
B) I and III only
C) II, III, and IV only
D) I, II, III, and IV
4. Sarah Slick is kicking herself for having bought the stock of Bounce, Inc.at a higher price than she needed
to have paid. She bought it at $50 a share on November 20th and watched its price drop during December.
Ms. Slick is confident that Bounce's stock price will bounce back (pun intended), but she decides that in
the meantime, she will sell her shares and use the realized capital loss to offset some of the capital
gains she has realized on other investments during the year. Thus, on December 30th, she sells her
shares of Bounce for $40 a share. During the first couple weeks of the new year, Sarah observes
Bounce's price creeping upward, and she buys the same number of shares she previously sold for $45 a
share on January 18th. Given this scenario, which of the following statements is true?
A) Although Sarah did not wait the requisite 30 days after her sale of Bounce shares to repurchase them,
she can still deduct her realized capital loss of $10 a share when calculating her taxes for that tax year
since her repurchase of the shares didn't occur until the following tax year.
B) The SEC may file civil charges against Sarah for engaging in an illegal "wash sale."
C) Because Sarah waited the requisite 30 days after purchase before selling her shares in Bounce, she
can deduct her realized capital loss of $10 a share when calculating her taxes for that tax year.
D) Because Sarah did not wait the requisite 30 days after her sale of Bounce shares to repurchase them,
she cannot deduct her realized capital loss of $10 a share when calculating her taxes for that tax year.
5. Which of the following plans does not have the requirement that its participants must begin withdrawing
funds from the plan by April 1st of the year after they turn 70 1/2 ?
I. SIMPLE IRA
II. 401(k)
III. Roth IRA
IV. profit-sharing plan
A) I, III and IV only
B) III only
C) All of the above have a mandatory distribution requirement.
D) I and III only
Solutions:
| Question # 1 Answer: C | Question # 2 Answer: A | Question # 3 Answer: D | Question # 4 Answer: D | Question # 5 Answer: B |





