Finra Exam Series-6 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?

Aa face-amount certificate company

Ba unit investment trust

Ca mutual fund

Da closed-end investment company

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 Whitney at Apr 20, 2024, 08:50 PM

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Alease

2 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

30 days ago

C) a mutual fund

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Louvenia

1 months ago

B) a unit investment trust

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Reena

2 months ago

A) a face-amount certificate company

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Otis

2 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

1 months ago

User 3: I'm going with 'B' as well. Let's hope for the best!

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Valentin

1 months ago

User 2: Yeah, I agree. It's less work for us as investors.

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Ilda

2 months ago

User 1: I think 'B' is the right choice too. Passive management sounds easy.

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Isaac

3 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

1 months ago

I agree, they're the ones who march to the beat of their own drum.

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Launa

1 months ago

Yeah, they're like the rebels of the investment world. Always doing their own thing.

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Willis

1 months ago

Closed-end investment companies are definitely the cool kids. They always stand out.

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Marilynn

3 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

3 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

2 months ago

Face-amount certificate companies are too risky for my taste, I'll stick with unit investment trusts.

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Nu

2 months ago

I think closed-end investment companies can also be passively managed if you choose the right ones.

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James

2 months ago

I prefer mutual funds because they offer diversification and professional management.

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Danilo

2 months ago

I agree, unit investment trusts are great for passive investors.

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Josue

3 months ago

But what about a closed-end investment company? Couldn't that also be passively managed?

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Arleen

3 months ago

I agree with Shaun, a unit investment trust typically follows a passive management strategy.

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Shaun

4 months ago

I think a unit investment trust will always be passively managed.

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