Finra Series-6 Exam - Topic 9 Question 77 Discussion

Actual exam question for Finra's Series-6 exam

Question #: 77
Topic #: 9

[All Series-6 Questions]

Which of the following is exempt from registering as an investment company under the Investment Company Act of 1940?

Aa unit investment trust

Ba non-diversified mutual fund

Ca company that sells its securities only to accredited investors

Da company that has no sales charges or management fees

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 Portia at May 10, 2024, 05:19 PM

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Milly

6 months ago

A unit investment trust is also exempt, right?

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Candra

6 months ago

Wait, are you sure about C? Seems too good to be true!

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Glenna

6 months ago

Definitely C! Makes sense for private placements.

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Erasmo

7 months ago

I thought D could be exempt too, but I guess not.

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Fernanda

7 months ago

C is the right answer! Accredited investors are key.

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Cordelia

7 months ago

I remember that unit investment trusts have some different rules, but I can't recall if they're exempt or not.

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Teresita

7 months ago

I’m leaning towards option C, but I’m a bit confused about the specifics of the exemptions under the Investment Company Act.

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Brinda

7 months ago

I feel like we practiced a question similar to this in class, and I think it was about accredited investors being exempt.

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Eric

8 months ago

I think I remember that certain companies can be exempt, but I'm not sure which one it is.

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Karol

8 months ago

Okay, I've got a strategy - I'll eliminate the options that don't match the key exemptions I know about, then choose the best fit from the remaining choices.

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Angelo

8 months ago

Hmm, I'm a bit unsure about this one. The wording seems a bit technical, so I'll need to think it through step-by-step.

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Eun

8 months ago

This looks like a tricky question about investment company exemptions. I'll need to carefully review the key criteria for each option.

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Marge

8 months ago

I'm pretty confident I know the right answer here. Unit investment trusts are a common exemption, so I'll go with that.

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Gearldine

8 months ago

This looks like a question about event correlation rules. I'll need to think about the different rule types and how they handle multiple events.

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Kristel

8 months ago

I'm a bit confused by the second statement about every feature or tool having a separate IPS incorporation. I'm not sure if that's accurate or not. I'll have to think about that one.

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Caren

8 months ago

I'm torn between enabling sticky MAC addressing and some kind of auto MAC address learning—need to double-check which phrasing they're using here!

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Ming

8 months ago

Hmm, this is tricky. I know AES has different key and block size options, but I'm not totally confident which ones are valid. I'll have to think this through carefully.

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Haydee

1 year ago

I'm feeling pretty confident about C. Those accredited investors can handle themselves, no need for extra registration. Although, I do wonder if they get any special perks, like free doughnuts or something.

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