FINRA Series-6 - Investment Company and Variable Contracts Products Representative Qualification Examination (IR) Exam
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Total 325 questions
Question #11 (Topic: )
Which of the following actions will result in a taxable event for Tex Payor, an investor in the
Invest4U Mutual Fund?
I. Tex sells some of his shares of the fund at a profit.
II. Tex exchanges some of his shares in Invest4U for shares of another fund in the same
family of funds.
III. Tex opts to reinvest any dividend or capital gain income he might have received in the
fund to buy additional shares of the fund in lieu of receiving a check from the fund.
Invest4U Mutual Fund?
I. Tex sells some of his shares of the fund at a profit.
II. Tex exchanges some of his shares in Invest4U for shares of another fund in the same
family of funds.
III. Tex opts to reinvest any dividend or capital gain income he might have received in the
fund to buy additional shares of the fund in lieu of receiving a check from the fund.
A. I only
B. I and II only
C. I and III only
D. I, II, and III
Answer: D
Question #12 (Topic: )
You have just become a licensed registered representative with Fine, Howard, Fine and
Associates, a broker-dealer. (Congratulations!) You have had a brokerage account with
Anon Brokerage for the past ten years. In this instance, you are required to:
Associates, a broker-dealer. (Congratulations!) You have had a brokerage account with
Anon Brokerage for the past ten years. In this instance, you are required to:
A. transfer the assets in your account with Anon to a Fine, Howard, Fine account and close your account with Anon.
B. provide Fine, Howard, Fine with written notification of this fact.
C. provide Anon Brokerage with written notification of your association with Fine, Howard, Fine.
D. The actions described in both B and C are requirements.
Answer: D
Question #13 (Topic: )
On Friday, August 6th, the Board of Directors of Ecolab (ECI) announced that it would pay
a dividend of $0.155 a share to shareholders of record as of Tuesday, September 21st.The
dividend checks were scheduled to be mailed on Friday, October 15th. In this scenario, the
payment date is:
a dividend of $0.155 a share to shareholders of record as of Tuesday, September 21st.The
dividend checks were scheduled to be mailed on Friday, October 15th. In this scenario, the
payment date is:
A. Friday, August 6th.
B. Friday, September 17th.
C. Tuesday, September 21st.
D. none of the above.
Answer: D
Question #14 (Topic: )
Private placements are exempt from the registration requirements of the Securities Act of
1933 under the rules contained in:
1933 under the rules contained in:
A. Regulation A.
B. Regulation D.
C. Regulation E.
D. the Securities Exchange Act of 1934.
Answer: B
Question #15 (Topic: )
A preemptive right:
A. is a call option that is usually attached to a bond as a sweetener.
B. gives a bond owner the option to sell the bond back to the issuer at a pre-specified price.
C. entitles its owner to buy shares of stock at a specified price within a specified time period in order to maintain his proportionate ownership in the firm.
D. is a feature on some preferred stock issues that allows the preferred shareholders to exchange their preferred shares for shares of the common stock of the firm.
Answer: C
