Free Practice FINRA Series-6 Exam Questions 2025

Stay ahead with 100% Free Investment Company and Variable Contracts Products Representative Series-6 Dumps Practice Questions

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Total 328 Questions | Updated On: Apr 09, 2025

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Question 1

Giant Investments filed a registration statement with the SEC for a new fund it wanted to introduce and has received word that the registration statement is now effective. Based on this, Jack, a registered representative with Giant Investments, can tell a client that:

A : because the SEC has recently announced the fund’s registration statement effective, the client can rest assured that it is a sound long-term investment.

B : the SEC pronouncement on the effectiveness of the registration statement means only that the SEC has deemed that enough information has been provided in the registration statement for the client to judge the quality of the investment for himself.

C : the SEC warrants that there have been no misstatements of fact in the registration statement.

D : because the SEC has recently approved the fund, it is likely to be a much safer investment than other, older funds in the same fund category.

Answer: B

Question 2

Which of the following statements regarding the purchase and redemption of mutual fund shares is false?

A : Mutual fund shares may not be purchased on margin.

B : An investor can both purchase and sell fractional shares of mutual funds.

C : When an investor redeems his shares, the mutual fund must pay for the shares within 7 business days.

D : If an investor places an order to buy or redeem shares of a mutual fund before 4 P.M.EST on a day when the markets are open, the price will be based on the fund’s net asset value (NAV), as calculated at the end of that trading day.

Answer: C

Question 3

Paul is 36 years old and is married with two children, ages eight and ten. Paul lays carpet for a living, working as an independent contractor, and earns about $35,000 a year. His wife, Paula, is 33 years old, drives a school bus and earns only $18,000 a year, but her job provides the family with low-cost health insurance. They live conservatively and barely make ends meet. Paula recently inherited $180,000, however, and the couple would like to invest it, with the goal that they can both retire when Paul turns 62. The inheritance also included an educational endowment for their children, so they will not have to worry about saving for their children’s college educations. Which of the following would not be a suitable recommendation for the allocation of their investment monies?

A : municipal bond fund

B : aggressive growth stock fund

C : Roth IRA

D : life insurance

Answer: A

Question 4

By investing in a diversified portfolio, an investor will:

A : lower both his risk and his expected return.

B : lower his risk without affecting his expected return.

C : lower his risk and increase his expected return.

D : eliminate all the market risk associated with his investment portfolio.

Answer: B

Question 5

Ms. Mix always assures her clients that she will be calling them with quarterly recommendations for rebalancing their portfolios if there are any changes that she feels are appropriate. This has worked out well for her pocketbook since she has always been able to tweak each of her clients’ investment portfolios a little each quarter by recommending that they redeem their shares in one fund that hasn’t performed as well in the last quarter and use the proceeds to invest in another that has. Her clients feel cared for since she is in such regular contact with them. Is Ms. Mix violating any securities regulations with this policy of hers?

A : No. Ms. Mix is merely providing good service to her customers.

B : Yes. Mutual funds are not designed to be short-term investments.

C : It depends. There is no violation as long as her clients’ portfolios are increasing in value.

D : Yes. Any recommendation that benefits a registered representative is deemed to be in violation of FINRA’s rules regarding fair dealing.

Answer: B

Page: 1 / 66

Total 328 Questions | Updated On: Apr 09, 2025

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