Updated Finra Series-6 Exam Dumps – No More Outdated Material

Question No: 1

MultipleChoice

Any person who willfully acts in violation of the Securities Act of 1933, or any SEC rule, is subject to a penalty of:

Options

A10 years in prison or a $10,000 fine, or both.

B5 years in prison or a $10,000 fine, or both.

C10 years in prison or a $25,000 fine, or both.

D5 years in prison or a $5,000 fine, or both.

Question No: 2

MultipleChoice

Ms. Pye has quit her job to become a full-time mother and wants to roll over the funds from her 401(k) plan into an IR

Options

Athis is unwise since she will have to pay both taxes and a penalty on the funds that are rolled over.

AAs her financial adviser, you should tell her that:

Bif she has the funds transferred directly from her 401(k) plan to the IRA, she will avoid having 20% withheld.

Cif she opts to take possession of the funds herself prior to depositing them in the IRA account, she must make the deposit within 30 days to avoid a 10% penalty.

Dboth B and C.

Question No: 3

MultipleChoice

After three warnings, Honest Broker-Dealer was forced to terminate Sly Conman, one of its representatives, for making inaccurate statements when offering its mutual fund products to customers.

After his registration is terminated:

Options

AMr. Conman can apply for reinstatement of his license after 12 months.

BMr. Conman remains under the jurisdiction of FINRA for a period of 1 year.

CMr. Conman remains under the jurisdiction of FINRA for a period of 2 years.

DMr. Conman can apply for reinstatement of his license after 6 months, but will have to pay any applicable fees and retake a test.

Question No: 4

MultipleChoice

Which of the following is not considered to be a ''security'' as defined by the Securities Exchange Act of 1934?

Options

Aan interest in an oil drilling lease

Ba collateral trust certificate with an initial maturity of 5 years

Ca straddle that expires in 3 months

Da bankers' acceptance, issued with a maturity of 4 months

Question No: 5

MultipleChoice

Which of the following persons would not fall under the definition of ''investment adviser,'' under federal guidelines?

Options

Aan individual who advises only Oprah Winfrey on her investment portfolio and receives a nice salary for doing so.

Ba Denver-based, broker-dealer that is registered as a broker-dealer with the SEC and provides investment advice to members of the Denver Broncos, the Colorado Rockies, the Denver Nuggets, and the Colorado Avalanche organizations in exchange for box seats at their games. No monetary compensation is expected or given.

Can individual who works as an agent for a broker and occasionally gives investment advice to clients who request it, but receives no additional compensation for doing so.

DNone of the above would fall under the definition of ''investment adviser,'' as defined by the Investment Advisers Act of 1940.

Question No: 6

MultipleChoice

The ''catch-up provision'' that has been established for both the traditional and Roth IRAs applies to people of what age?

Options

A50 and older

B55 and older

C60 and older

D62 and older

Question No: 7

MultipleChoice

The ''statement of additional information'' (SAI) that mutual funds and closed-end funds are required to produce:

Options

Amust be provided to prospective investors whenever an offer to sell shares of these funds is made.

Bmust be sent to shareholders of the fund on at least a semiannual basis.

Cusually contains some biographical information on the officers and directors of the fund.

DBoth A and B are true statements.

Question No: 8

MultipleChoice

Which of the following would not constitute a ''public appearance,'' as defined by FINRA?

Options

AA registered representative gives a free seminar on the topic of asset allocation to members of her church.

BA registered representative starts a blog that discusses the pros and cons of various types of investments.

CThe investment adviser of a tech fund that has had phenomenal returns in the past 12 months responds to some questions from a business newscaster via a remote monitor.

DAll of the above constitute public appearances as defined by FINRA.

Question No: 9

MultipleChoice

Which of the following does not fall under the category of ''sales literature,'' as defined by FINRA?

Options

Aa research report mailed only to a fund's existing clients

Ban announcement containing some biological information on a registered representative who has just joined the firm

CPowerPoint slides that have been prepared to use in a seminar

DReprints of an article that appeared in a financial publication about a specific mutual fund

Question No: 10

MultipleChoice

Mr. Cross wanders into your office with a $35,000 check that he has received from his recently-deceased wife's insurance company and wants you to advise him how to invest it, since that is your job, as he puts it.

You ask him to fill out a standard investor profile questionnaire, but he refuses to do so. You offer to fill it out for him, based on his answers to your verbal questions, but he still refuses and calls you a ''nibby-nose.'' Based on this, you can:

Options

Aallocate the $35,000 any way you choose since you have an uncooperative client.

Badvise him to invest the money in a money market mutual fund instead of holding it as cash.

Cadvise him to invest the money in an S&P 500 Index fund.

DThe advice provided in either Choice B or Choice C would be appropriate.

Question No: 11

MultipleChoice

Mr. Schaker hasn't been seeing a lot of clients these days with the recent market downturn-which means he hasn't been generating any commissions, and commissions are his bread and butter. So, Mr. Schaker does some Googling on his computer and notes that a prominent family of load funds has just introduced a new global fund. Scribbling the name and contact information of the fund family on his notepad, he begins calling his existing clients and promoting the new fund, encouraging his clients to redeem some shares in their existing funds to invest in this fund.

Has Mr. Schaker violated any securities laws?

Options

ANo. In FINRA's rules regarding fair dealing with customers, the SRO clearly states that ''This does not mean that legitimate sales efforts in the securities business are to be discouraged. . . ''

BYes. Mr. Schaker is recommending the fund to his existing clients to benefit himself, not them.

CNo. Research indicates that new funds tend to offer abnormally high returns for the first 12 months of their existence, so Mr. Schaker is doing his clients a favor even if he himself stands to profit.

DD. Yes. A registered representative should always refrain from recommending shares of a load fund; trades involving load funds should always be ''unsolicited.''

Question No: 12

MultipleChoice

The difference between a ''redemption fee'' and a ''rear-end load'' is that:

Options

Athe redemption fee is another name for a 12b-1 fee, which is an annual expense associated with the fund.

Ba rear-end load is used to compensate a salesperson who has sold shares of the fund; a redemption fee is charged to offset the expenses a fund incurs in processing share redemptions.

Cthe redemption fee refers to charges incurred by the fund when it sells securities it owns; the rear-end load is a fee that is incurred by investors in the fund when they redeem their shares of the fund.

DThere is no difference. These are synonymous terms.

Question No: 13

MultipleChoice

Which of the following statements regarding the ''rights of accumulation'' is true?

Options

AAll mutual funds that have front-end loads are required to allow their shareholders rights of accumulation.

BReinvested dividends and capital gain distributions count toward reaching a breakpoint under the rights of accumulation.

CA breakpoint must be reached within a 13-month period, at which point the accumulation period begins anew.

DA letter of intent must be signed to activate the rights of accumulation.

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