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FINRA Series6 Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Obtains and Verifies Customers’ Purchase and Sales Instructions; Processes, Completes and Confirms Transactions | 10% | - Transaction processing and verification |
| Topic 2: Provides Customers with Information About Investments, Makes Recommendations, Transfers Assets and Maintains Appropriate Records | 50% | - Product information, suitability, recordkeeping and transfers |
| Topic 3: Opens Accounts After Obtaining and Evaluating Customers’ Financial Profile and Investment Objectives | 16% | - Account opening procedures and financial profile evaluation |
| Topic 4: Seeks Business for the Broker-Dealer from Customers and Potential Customers | 24% | - Topics in communications, marketing, and solicitation activities |
FINRA Investment Company and Variable Contracts Products Representative Examination (IR) Sample Questions:
1. The dividends distributed by which of the following are taxed as ordinary income?
A) mutual funds
B) IBM
C) closed-end investment companies
D) real estate investment trusts
2. Which of the following statements about specialists is false?
A) Specialists are employees of the exchange on which they oversee trades.
B) In addition to acting as market makers, specialists also act as agents and execute limit orders placed
by commission brokers for their clients if the specified price is reached.
C) Specialists are required to maintain a fair and orderly market in their assigned stocks, meaning that
they must buy if there is an excess of sell orders and sell out of their own portfolios if there is an excess of
buy orders.
D) Specialists are market makers in assigned stocks and, as such, can profit from these investments.
3. GoForBroke Broker-Dealers has distributed a list of ten mutual funds that it suggests are top-notch funds
worthy of recommendation by GoForBroke's agents. Coincidentally, all the funds on this list also happen
to be those that execute the majority of their trades through GoForBroke. Is GoForBroke in violation of
any FINRA rules?
A) No. As long as the list consists of more than five funds, GoForBroke has not violated any FINRA rules.
B) Yes. GoForBroke is prohibited from selling shares of mutual funds that execute their trades through the
broker-dealer. This rule is in place to avoid conflicts of interest.
C) No. GoForBroke only distributed a list of fund names; it did not offer its agents any form of additional
compensation for selling the funds on that list.
D) Yes. By distributing a list naming specific funds that coincidentally all happen to execute a lot of trades
through GoForBroke, the broker-dealer is violating FINRA's anti-reciprocal rule.
4. The stock of Hasbro Corporation (HAS) is selling for $44.50 and pays a dividend of $1.00 a share. What is
its dividend yield, rounded to the nearest hundredth of a percent?
A) none of the above
B) 1.00%
C) 2.25%
D) 4.45%
5. Your cousin has recently attended a seminar on the benefits of diversification. Based on what he learned,
he decided to sell the shares he had in a large stock growth fund and put 50% of his money in hotel stocks
and 50% in airline stocks. Based on this information, you can tell him:
A) that he's less diversified than he was before.
B) that he's wise beyond his years.
C) that he's less diversified than he was before, but can expect a higher rate of return.
D) none of the above.
Solutions:
| Question # 1 Answer: D | Question # 2 Answer: A | Question # 3 Answer: D | Question # 4 Answer: C | Question # 5 Answer: A |



