Finra Series-6 Exam - Topic 1 Question 82 Discussion

Actual exam question for Finra's Series-6 exam

Question #: 82
Topic #: 1

Annie Vestor owns shares of the URMoney Mutual Fund. Annie lives on the west coast in Seattle, Washington. URMoney reported a net asset value per share of $10.10 on October 9th. On October 10th, its reported net asset value per share was $10.20. Upon arriving home at 12 P.M. (her time) on October 9th, Annie logged into the URMoney website and entered an order to redeem 500 shares of her holdings in the fund. This order will be transacted at:

Athe net asset value of the fund at the end of the trading day on October 11th.

B$10.20

C$10.10

DThe price at which this order will be transacted cannot be estimated based on the information provided.

Show Suggested Answer

Suggested Answer: D

Given that Chandler is a representative with a member firm while Phoebe's employer is not a member of any known securities association, he is required to charge Phoebe the same commission that he charges any member of the general public when executing a transaction for her and is prohibited from splitting commissions with her. He is not prohibited from engaging in any financial transactions with her; he simply must do so ''for the same commissions or fees, and on the same terms and conditions as are. . .accorded to the general public,'' according to FINRA.

by Jesse at Jul 06, 2024, 07:18 PM

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Vivienne

6 months ago

Sounds right, but I thought orders could be processed differently.

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Yuki

6 months ago

Nope, it’s all about the NAV at the end of the trading day.

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Virgie

6 months ago

Wait, so she doesn’t get the $10.20? That seems off.

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Lizbeth

7 months ago

I agree, it’s definitely $10.10.

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Pamella

7 months ago

The NAV was $10.10 on the 9th, so that's what she gets.

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Erick

7 months ago

I practiced a similar question where the NAV was based on the next trading day. I think it might be option A, but I need to double-check the timing rules.

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Yvette

7 months ago

I’m really uncertain about this one. I thought it was based on the NAV at the time of the order, but now I’m second-guessing myself.

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Sheridan

7 months ago

I remember something about mutual fund orders being processed at the next available NAV after the order is placed. So maybe it's $10.20?

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Stevie

8 months ago

I think the order will be executed at the net asset value at the end of the trading day, but I'm not sure if it's the 10th or the 11th.

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Alberta

8 months ago

I'm not sure about this one. The information provided doesn't seem sufficient to determine the exact price at which the order will be transacted. I'll have to carefully consider all the options before making a decision.

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Nada

8 months ago

Hmm, I'm a bit confused. The question mentions the NAV on October 9th and 10th, but it's not clear when the order will be transacted. I'll need to think this through carefully.

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An

8 months ago

This one seems straightforward. I think the answer is B since the question states the NAV on October 10th was $10.20, and the order was placed on October 9th.

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Skye

8 months ago

Okay, let me break this down. The order was placed on October 9th, but it says the order will be transacted at a future date. I'm thinking the answer might be A, since the question mentions the end of the trading day on October 11th.

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Yolando

8 months ago

Okay, let me see... I think it has something to do with the tab settings, but I'm not sure exactly which one. I'll have to review my notes on that.

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Eden

8 months ago

Okay, I think I know the answer to this one. Demand management is the key activity that connects all those different parts of the supply chain.

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Cordie

1 year ago

Hey, I heard URMoney has a great retirement plan. Maybe Annie should just hold onto those shares and let them grow!

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Agustin

11 months ago

D) The price at which this order will be transacted cannot be estimated based on the information provided.

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Taryn

11 months ago

That's a good point, holding onto the shares might be a smart move.

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Frank

12 months ago

A) the net asset value of the fund at the end of the trading day on October 11th.

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Wilda

1 year ago

I'm not sure about this one. The information provided doesn't seem to be enough to determine the exact price at which the order will be transacted. I'm going with D.

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Peggie

11 months ago

I'm not sure, but I'll go with C) $10.10 just to be safe.

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Domitila

12 months ago

I agree with A), it makes sense to wait until the end of the trading day for the transaction.

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Kanisha

1 year ago

I think it's A) the net asset value of the fund at the end of the trading day on October 11th.

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Marleen

1 year ago

Hold on, the question says the order was placed on October 9th, so the net asset value on that day should be used, which is $10.10. Option C is the right answer here.

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Isadora

11 months ago

Great, thanks for clarifying that. Option C) $10.10 it is.

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Vernell

12 months ago

That makes sense. Option C) $10.10 is the correct answer.

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Alexia

12 months ago

Yes, you're right. The order was placed on October 9th, so the net asset value on that day should be used.

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Karrie

12 months ago

I think the answer is C) $10.10

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Delsie

1 year ago

But wait, if the net asset value increased from $10.10 to $10.20 on October 10th, shouldn't the order be executed at the higher price? I'm going with B.

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Eura

1 year ago

I'm not sure, but I think D) The price at which this order will be transacted cannot be estimated based on the information provided makes sense. It's always better to be cautious.

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Kara

1 year ago

Okay, let's think this through. Since Annie placed the order after the market closed on October 9th, the transaction will be executed at the next available net asset value, which is October 11th. The correct answer is A.

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