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Finra Series-6 Exam - Topic 3 Question 102 Discussion

Which of the following statements regarding a letter of intent is true?
D) A letter of intent may be backdated up to 90 days so that any purchases made during that prior time period will count toward making a breakpoint.
A) An investor has 12 months in which to invest the amount stipulated in the letter.
B) Reinvested dividends and capital gain distributions count toward the amount stipulated in the letter of intent.
C) An investor who signs a letter of intent and does not invest the amount stipulated must make up the difference between the sales charge he paid and what he should have paid, plus interest.

Finra Series-6 Exam - Topic 3 Question 102 Discussion

Actual exam question for Finra's Series-6 exam
Question #: 102
Topic #: 3
[All Series-6 Questions]

Which of the following statements regarding a letter of intent is true?

Show Suggested Answer Hide Answer
Suggested Answer: D

The true statement is that a letter of intent may be backdated up to 90 days so that any purchases made during that prior time period will count toward making a breakpoint. An investor has 13 months in which to invest the amount stipulated in the letter. The invested funds must consist of new money; reinvested dividends and capital gain distributions don't count. If the amount stipulated in the letter of intent is not invested during the 13 months, the investor must only make up the difference between the sales charge he paid and what he should have paid, given that he didn't qualify for the breakpoint. No interest is charged on the difference.


by Loreen at Jun 12, 2025, 09:25 PM

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Josefa
7 months ago
Wait, really? I thought it was only for future investments.
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Lavina
7 months ago
Totally agree, that’s a great way to maximize benefits.
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Antione
7 months ago
A letter of intent can be backdated up to 90 days!
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Pearly
7 months ago
Not sure about that reinvested dividends part, seems off.
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Rueben
7 months ago
An investor has 12 months to invest the stipulated amount.
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Gaynell
8 months ago
I’m a bit confused about option A; I thought the time frame for investing was flexible, but I can't remember the exact details.
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Nikita
8 months ago
I practiced a question similar to this, and I recall that reinvested dividends do not usually count toward the investment amount, which makes me lean away from option B.
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Rodney
8 months ago
I'm not entirely sure, but I feel like option C might be correct since it mentions making up the difference in sales charges.
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Emerson
8 months ago
I think option D sounds familiar because I remember something about backdating letters of intent to help with breakpoints.
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Audry
9 months ago
This is a good opportunity to apply the concepts we've been learning about letters of intent. I'll use the process of elimination to narrow down the options and identify the correct statement.
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Leota
9 months ago
I'm a bit confused by the wording in some of these options. I'll need to re-read them a couple times to make sure I'm not misinterpreting anything.
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Veronika
9 months ago
I'm feeling pretty confident about this one. The key is to focus on the specific details in each option and identify which one is the most accurate statement about a letter of intent.
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Roosevelt
9 months ago
Okay, let me think this through step-by-step. I want to make sure I don't miss any important details in the wording of these statements.
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Timmy
9 months ago
Hmm, this question seems a bit tricky. I'll need to carefully read through the options to make sure I understand the key differences.
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Erasmo
12 months ago
Wow, these letters of intent sound like a real minefield. I'm just going to stick to index funds and avoid the headache.
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Domonique
10 months ago
B) Reinvested dividends and capital gain distributions count toward the amount stipulated in the letter of intent.
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Felicia
10 months ago
A) An investor has 12 months in which to invest the amount stipulated in the letter.
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Cecily
10 months ago
B) Reinvested dividends and capital gain distributions count toward the amount stipulated in the letter of intent.
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Alesia
11 months ago
A) An investor has 12 months in which to invest the amount stipulated in the letter.
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Hortencia
1 year ago
This is a tricky one, but I think B) is the way to go. Counting reinvested dividends towards the letter of intent makes the most sense.
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Cruz
11 months ago
I think so too, reinvested dividends should definitely count towards the letter of intent.
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Odelia
11 months ago
I agree, B) seems like the most logical choice.
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Natalie
1 year ago
A) 12 months to invest the full amount? That's a pretty generous timeline. Might as well go for it!
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Malika
1 year ago
But C makes more sense because it ensures the investor pays the correct sales charge.
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Barabara
1 year ago
C) Ouch, that's a harsh penalty for not meeting the letter of intent. I'd be sure to do my homework before signing one of those.
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Micah
12 months ago
User 3: I agree, always better to be informed and avoid any surprises later on.
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Cassi
12 months ago
User 2: Definitely, it's important to understand all the terms before signing anything.
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An
12 months ago
User 1: Yeah, that penalty for not meeting the letter of intent is no joke.
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Emelda
1 year ago
D) Definitely the correct answer. Backdating the letter of intent up to 90 days is a great way to maximize your investment and take advantage of those breakpoints.
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Willie
11 months ago
C
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Rodolfo
12 months ago
B
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Jennie
1 year ago
D
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Maricela
1 year ago
I disagree, I believe the answer is D.
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Malika
1 year ago
I think the answer is C.
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