Finra Exam Series-6 Topic 5 Question 84 Discussion

Actual exam question for Finra's Series-6 exam

Question #: 84
Topic #: 5

[All Series-6 Questions]

Mandatory guidelines for the prospectuses of which of the following are dictated by the Investment Company Act of 1940?

i. mutual funds

ii. closed-end investment companies

iii. unit investment trusts

IV. variable contracts

AI and II only

BII only

CI, II, and III only

DI, II, III, and IV

Show Suggested Answer

Suggested Answer: A

Since Joan is a customer of GetErDone, GetErDone must provide her with a notification of its privacy policies annually and provide her with information on how to mandate that it not share her nonpublic personal information with nonaffiliated third parties. GetErDone may not disclose any information about Jean, who is not yet a customer of the firm, unless the broker -dealer has provided Jean with its privacy policy and given her the opportunity to opt out of its ability to share her information with nonaffiliated third parties. GetErDone is not required to have provided Jean with a copy of its privacy policy when she inquired about opening an account, but it will need to provide her with one when/if she becomes a customer.

by Marg at Aug 03, 2024, 06:25 AM

Limited Time Offer

25%

Off

Get Premium Series-6 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Cyndy

1 months ago

If you get this wrong, the SEC is going to send the investment police after you. They have a strict dress code and everything.

upvoted 0 times

Wilford

27 days ago

A) I and II only

upvoted 0 times

...

Carmen

1 months ago

Hmm, I'm leaning towards B. The question seems to be focused on closed-end investment companies, and that's the only one that's explicitly mentioned. Maybe the other types are a trick question?

upvoted 0 times

Gail

8 days ago

I think it's D. The Investment Company Act of 1940 covers all types of investment companies, including mutual funds, closed-end investment companies, unit investment trusts, and variable contracts.

upvoted 0 times

...

Kristeen

1 months ago

D has to be the right answer. The question specifically asks about which ones are dictated by the Investment Company Act, and that includes all of them. Easy peasy!

upvoted 0 times

...

Dolores

2 months ago

I'm going with C. Mutual funds, closed-end investment companies, and unit investment trusts are all regulated by the Investment Company Act, but variable contracts are a different animal.

upvoted 0 times

Adrianna

27 days ago

I think D is the right choice. It covers all the options mentioned in the question.

upvoted 0 times

...

Val

29 days ago

I agree, C is the correct answer. Variable contracts are not covered by the Investment Company Act.

upvoted 0 times

...

Twana

2 months ago

I think the answer is D, that covers all the types of investment companies mentioned in the question. The Investment Company Act of 1940 has mandatory guidelines for all of them.

upvoted 0 times

...