About the S6
How many questions are on the Series-6 Exam?
What is 50 questions.
This can be used as a prospecting tool, allowing issues and underwriters to gauge investor interest and gather indications of interest.
What is Red Herring or Preliminary Prospectus
This is a term also called Class B shares. Shares with a deferred sales charge or CDSC, where redemption fee is charged if and when an investor redeems mutual funds shares.
What is Back-End Loads
This has four stages including expansion, peak, contraction and trough.
What is Business Cycle.
This is any written (including electronic) communication that is distributed or made available to 25 or fewer retail investors within any 30-calendar-day period?
What is Correspondence.
How long do you have to complete the Series-6 Exam?
In regards to the Series 6 Exam, please name one exempt security.
What is Commercial paper, Bankers' acceptances, or Securities that have maturities of 270 days or less.
These are quantity discounts on mutual funds, the greater the dollar amount of the purchase, the lower the sales charge.
What are Breakpoints
What is the balance sheet equation?
What is Assets = Liabilities + owner's equity (or assets - liabilities = owner's equity)
This promotes securities as an investment medium but does not refer to any specific security.
What is Generic advertising.
What is the minimum score you need to pass?
What is a 70%
When comparing Brokers vs. Dealers, which charges a commission for their services?
What is a Broker
A method of purchasing mutual fund shares where the individual will purchase more shares when prices are low and fewer shares when prices are high.
What is Dollar Cost Averaging.
This is a measure of a stock or portfolio's volatility in relation to the overall market (systematic risk).
What is Beta
To register an associated person of a member firm with FINRA, the member fills out and submits what?
What is a U4
Which unit has the highest level focus in regards to questions on the exam?
What is Unit 2 (14 of the 50 questions)
In regards to comparing Brokers vs. Dealers, which maintains an inventory, buys into inventory, sells from inventory?
What is Dealer
This is an insurance contract designed to provide retirement income. The name refers to a stream of payments guaranteed for some specified period.
What is an Annuity
A product is considered what, if a customer can sell if quickly at face amount or at a fair market price.
What is liquid.
This must be filed by the member within 30 calendar days of a termination.
What is a U5.
What topic/job function takes up 50% of the exam?
What is "Provides customers with info about investment, makes recommendations, transfers assets, and maintains appropriate records."
A trade confirmation must be provided to a customer for each transaction. What three items must be on the trade confirmation?
These are payments from profit paid to shareholders.
What is Dividends.
This is the risk that investors may lose some of their principal due to price volatility in the overall market (also known as systematic risk).
What is Market Risk.
All firms are required to maintain records concerning written complaints for a minimum of how many years after resolution?
What is 4 years.