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Finra Series-6 Exam - Topic 2 Question 75 Discussion

Actual exam question for Finra's Series-6 exam
Question #: 75
Topic #: 2
[All Series-6 Questions]

Which of the following investment companies will always be passively managed?

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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 Whitney at Apr 20, 2024, 08:50 PM

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Lamonica
3 months ago
Closed-end companies can be actively managed, right?
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Janet
3 months ago
Wait, are you sure about that? Sounds too simple.
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Brett
3 months ago
I thought mutual funds could be actively managed too?
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Elenore
4 months ago
Totally agree, that's a fact!
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Yvette
4 months ago
A unit investment trust is always passively managed.
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Arthur
4 months ago
Closed-end investment companies can be actively managed too, right? So that rules them out for this question.
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Katie
4 months ago
I feel like I’ve seen practice questions where they mention face-amount certificate companies, but I can’t recall if they’re active or passive.
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Thurman
4 months ago
I remember studying that mutual funds can be actively managed, so I don’t think that’s the answer.
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Johnna
5 months ago
I think a unit investment trust is the one that’s always passively managed, but I’m not completely sure.
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Helga
5 months ago
I'm a little confused on the differences between these investment company types. I'll have to review my notes to make sure I understand the key characteristics of each one. Hopefully I can narrow it down from there.
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Terrilyn
5 months ago
Okay, let me see if I can break this down. A face-amount certificate company and a closed-end investment company can be actively or passively managed, so those aren't the right answers. I'm pretty sure a unit investment trust is always passively managed, so I'll go with B.
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Mammie
5 months ago
Hmm, I'm not totally sure about this one. I know mutual funds can be actively or passively managed, but I'm not as familiar with the other investment company types. I'll have to think this through carefully.
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Mozell
5 months ago
This question seems straightforward, I think the answer is B - a unit investment trust is always passively managed.
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Margot
5 months ago
This is a tough one, but I'm going to give it my best shot. Gotta stay focused and work through the problem methodically.
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Cheryl
5 months ago
Hmm, I'm not too familiar with network management terminology, so I'll have to think this through carefully before answering.
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Louis
5 months ago
I think option C stands out as something that doesn't align with the Principles. It feels off to prioritize foreign shareholders over domestic ones.
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An
5 months ago
Hmm, I'm a little unsure about this. I know we need to optimize for mobile, but I'm not sure which of these options is the best approach. I'll have to think it through carefully.
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Melvin
5 months ago
I have a vague feeling it was "should not" because of the implications for patient rights, but I'm unsure about the liability term!
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Alease
10 months ago
Wait, are we sure there's no option for 'all of the above'? That seems like the safest bet to me.
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Kathrine
8 months ago
C) a mutual fund
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Louvenia
9 months ago
B) a unit investment trust
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Reena
9 months ago
A) a face-amount certificate company
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Otis
10 months ago
I'm just going to go with 'B' and hope for the best. At least I won't have to do any actual work to manage my investments.
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Caitlin
8 months ago
User 3: I'm going with 'B' as well. Let's hope for the best!
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Valentin
9 months ago
User 2: Yeah, I agree. It's less work for us as investors.
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Ilda
9 months ago
User 1: I think 'B' is the right choice too. Passive management sounds easy.
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Isaac
10 months ago
Closed-end investment companies are the real MVP here. They're like the cool kids of the investment world, always trying to one-up the others.
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Trina
8 months ago
I agree, they're the ones who march to the beat of their own drum.
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Launa
9 months ago
Yeah, they're like the rebels of the investment world. Always doing their own thing.
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Willis
9 months ago
Closed-end investment companies are definitely the cool kids. They always stand out.
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Marilynn
10 months ago
A face-amount certificate company? What is this, the 1920s? Let's stick with something more modern, like a mutual fund.
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Chun
10 months ago
Unit investment trusts are definitely the way to go, they're like the lazy person's investment choice - just set it and forget it!
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Judy
9 months ago
Face-amount certificate companies are too risky for my taste, I'll stick with unit investment trusts.
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Nu
9 months ago
I think closed-end investment companies can also be passively managed if you choose the right ones.
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James
10 months ago
I prefer mutual funds because they offer diversification and professional management.
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Danilo
10 months ago
I agree, unit investment trusts are great for passive investors.
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Josue
11 months ago
But what about a closed-end investment company? Couldn't that also be passively managed?
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Arleen
11 months ago
I agree with Shaun, a unit investment trust typically follows a passive management strategy.
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Shaun
11 months ago
I think a unit investment trust will always be passively managed.
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