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Finra Exam Series-6 Topic 10 Question 70 Discussion

Actual exam question for Finra's Series-6 exam
Question #: 70
Topic #: 10
[All Series-6 Questions]

Which of the following statements regarding the required distribution of income by a regulated investment company are true?

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Suggested Answer: B

Mr. Nomad's friend can engage in the activities described in Selections I and II only. A limited power of attorney gives Mr. Nomad's friend the authority to buy and sell securities on Mr. Nomad's behalf, but not to make any cash withdrawals. He would need a full power of attorney to be able to do so.


by Quentin at Jan 26, 2024, 09:58 AM

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Rebeca
3 months ago
Both A and B, huh? Looks like the exam writers are really trying to squeeze our brains. I hope they don't expect us to remember all these complex rules!
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Keneth
1 months ago
Yeah, as long as we have a general idea of how things work, we should be fine.
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Ivette
1 months ago
I think we just need to focus on understanding the main concepts and not get too caught up in the details.
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Bonita
1 months ago
Yeah, it can be overwhelming, but we just have to stay focused and study hard.
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Rosamond
1 months ago
I agree, it's important to pay attention to the details when it comes to tax laws and regulations.
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Virgilio
1 months ago
I know, it can get really confusing with all these rules and regulations.
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Werner
2 months ago
I know, it's a lot to remember. But we have to make sure we understand all the rules for the exam.
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Lemuel
3 months ago
Reinvest and pay no taxes? Sounds like a loophole straight out of a cartoon villain's playbook. I'm definitely going to look into that one!
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Deandrea
2 months ago
I wonder how many people take advantage of that loophole.
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Terry
2 months ago
Yeah, it seems like a way to avoid paying taxes on your earnings.
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Luis
2 months ago
User 2: Yeah, it does seem like a loophole. But I wonder if there are any catches.
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Noe
2 months ago
User 1: I heard about that too, sounds too good to be true.
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Justine
2 months ago
I think it's crazy that investors can avoid paying taxes by reinvesting.
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Cornell
2 months ago
User 2: Yeah, it does seem a bit sketchy. I wonder if it's really legal.
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Nu
2 months ago
User 1: I heard about that loophole too, sounds too good to be true.
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Elena
3 months ago
I heard about that too! It does sound like a loophole.
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Claribel
3 months ago
I'm not sure about that, I think C) is also true because if you reinvest your dividends, you don't have to pay taxes on them.
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Billi
3 months ago
Ah, the magic of preferential tax rates on qualifying dividends. It's like the government is giving us a secret discount on our investments.
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Anna
3 months ago
I agree with Macy, because short-term and long-term capital gains can only be distributed once a year, and qualifying dividends are taxed at a preferential rate.
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Kerrie
3 months ago
Wait, so we can distribute capital gains only once a year? That's like saying I can only eat chocolate once a year - it just doesn't make sense!
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Macy
3 months ago
I think the answer is D) Both A and B are true statements.
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