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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?

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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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Alease
24 days 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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Reena
2 days ago
A) a face-amount certificate company
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Otis
26 days 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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Ilda
15 days ago
User 1: I think 'B' is the right choice too. Passive management sounds easy.
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Isaac
1 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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Marilynn
1 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
1 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 days ago
Face-amount certificate companies are too risky for my taste, I'll stick with unit investment trusts.
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Nu
3 days ago
I think closed-end investment companies can also be passively managed if you choose the right ones.
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James
21 days ago
I prefer mutual funds because they offer diversification and professional management.
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Danilo
22 days ago
I agree, unit investment trusts are great for passive investors.
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Josue
2 months ago
But what about a closed-end investment company? Couldn't that also be passively managed?
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Arleen
2 months ago
I agree with Shaun, a unit investment trust typically follows a passive management strategy.
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Shaun
2 months ago
I think a unit investment trust will always be passively managed.
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