Finra Series-6 Exam - Topic 3 Question 95 Discussion

Actual exam question for Finra's Series-6 exam

Question #: 95
Topic #: 3

Which of the following would qualify as accredited investors for a Regulation D offering?

i. your 45-year-old, spinster aunt who has earned in excess of $200,000 annually over the last ten years as a pediatric surgeon

ii. your Uncle Miserly, who is reputed to have a net worth of $1.2 million

iii. Tiny Brokers, a small broker-dealer with a single office in the state of Kentucky IV. a trust containing assets that are valued between $3.5 and $4 million

AI and II only

BIII and IV only

CI, II, and III only

DII and IV only

Show Suggested Answer

Suggested Answer: A

Among other things, the trade confirmation that Anna receives must stipulate the items described in Selections I and III only. The trade confirmation that Anna receives from GetErDone must stipulate the time and date of the transaction, the number of shares sold, and the price at which they were sold. The exchange or ECN on which the transaction was executed is not provided on the confirmation statement. Whether GetErDone acted as a principal or a broker in the transaction does need to be stipulated, but in this instance GetErDone acted as a broker, not a principal. GetErDone did not itself buy the shares from Anna.

by Lucy at Jan 15, 2025, 11:12 PM

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Georgene

6 months ago

Definitely think I and II are in, solid choices!

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Dierdre

6 months ago

Wait, a trust with that value is accredited? Seems too easy!

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Reena

6 months ago

Tiny Brokers? Not an accredited investor, right?

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Stanton

7 months ago

Uncle Miserly doesn't make the cut, net worth is too low.

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Edda

7 months ago

Auntie qualifies for sure, great income!

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Gianna

7 months ago

I feel like I might be mixing up the requirements for individuals and entities. I know my aunt and the trust are likely good, but what about the broker-dealer?

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Ashanti

7 months ago

I practiced a similar question, and I believe that trusts can qualify if they have enough assets. So, I think IV is definitely in.

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German

7 months ago

I think my aunt qualifies since she has a high income, but I'm a bit confused about Uncle Miserly's net worth. Does it have to be over a million excluding liabilities?

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Sue

7 months ago

I remember that accredited investors need to meet certain income or net worth thresholds, but I'm not sure about the specifics for trusts.

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Evangelina

7 months ago

Hmm, I'm a bit unsure about the broker-dealer and trust options. I'll need to double-check the regulations to determine if they meet the accredited investor definition. Better not to guess on this one.

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France

7 months ago

I've got this! Accredited investors include individuals with high income or net worth. So I'm pretty sure options i and ii qualify, but I'm not as confident about iii and iv.

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Terrilyn

8 months ago

Okay, let's think this through. The key is understanding the specific requirements for accredited investor status. I'll need to analyze each option and see which ones meet the criteria.

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Hubert

8 months ago

This question seems straightforward, but I want to make sure I understand the criteria for accredited investors under Regulation D. I'll need to review the details carefully.

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Loreta

1 year ago

I don't know about you, but I'm feeling pretty accredited just by being here and taking this exam. Maybe we should start our own investment firm - 'Tiny Brokers 2.0'!

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India

1 year ago

You know, I'm pretty sure my aunt could operate on Uncle Miserly's wallet and still come out on top. And Tiny Brokers? I bet they're so small, they could hide in the pocket of that trust's assets!

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Jacklyn

12 months ago

C) I, II, and III only

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Wai

12 months ago

B) III and IV only

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Serita

1 year ago

A) I and II only

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Lauran

1 year ago

C) I, II, and III only

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Elfriede

1 year ago

I think your aunt and Uncle Miserly would definitely qualify as accredited investors.

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Zana

1 year ago

B) III and IV only

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Jess

1 year ago

A) I and II only

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Paul

1 year ago

My money's on option D, my friend. Uncle Miserly and that trust with the 3.5-4 million in assets, they're the real deal. As for the pediatric surgeon and Tiny Brokers, I think they're about as accredited as my pet rock.

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Kip

12 months ago

Definitely going with option D for the accredited investors.

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Clemencia

1 year ago

The pediatric surgeon and Tiny Brokers don't quite make the cut.

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Paz

1 year ago

Yeah, those two options meet the income and net worth requirements.

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Heidy

1 year ago

I agree, Uncle Miserly and the trust definitely seem like accredited investors.

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Elliot

1 year ago

Hmm, I'm not so sure about that small broker-dealer, Tiny Brokers. Sounds like they might be a bit too 'tiny' to make the cut. But that trust with the multi-million dollar assets? Now, that's what I call an accredited investor!

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Corazon

1 year ago

Yeah, that trust definitely meets the requirements for a Regulation D offering.

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Denny

1 year ago

But that trust with the multi-million dollar assets is definitely a sure bet.

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Myrtie

1 year ago

I agree, they could still meet the criteria.

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Matilda

1 year ago

I think Tiny Brokers might still qualify as an accredited investor.

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Lemuel

1 year ago

Ah, my dear aunt, the pediatric surgeon, definitely qualifies as an accredited investor! Her impressive earnings over the years are a clear indicator of her financial savvy. And Uncle Miserly's hefty net worth? Absolutely, he's in the club too.

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Audria

1 year ago

I'm not sure, but I think the answer might be C) I, II, and III only.

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Emily

1 year ago

I agree with Freeman, Uncle Miserly and the trust with assets valued between $3.5 and $4 million should qualify as accredited investors.

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Freeman

1 year ago

I think the answer is D) II and IV only.

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