Series 6 Practice Questions

Welcome to your Series 6 Practice Exam

1) There are 3 categories of investment companies (Face amount certificate company, Management investment company & __________________)
2) Stacy is 48 years old and has a daughter starting college in 8 months. She is looking for a safe investment to help her daughter pay for college. What suitable investment would you recommend for Stacy?
3) The maximum sale charge in a mutual fund is_____
4) Outstanding stocks do not have voting rights and the right to receive dividends.
5) A face amount certificate company is a company that issues only ________ securities to its investors and pays a fixed rate of return.
6) Preemptive Rights allow shareholders to maintain their current percentage of ownership in a stock.
7) A company pays $2.50 dividend . What is the annual dividend?
8) An example of an over-the-counter securities market is the New York Stock Exchange (NYSE).
9) _______________are the only agency security backed in full by the U.S. government.
10) If the yield to maturity rate is less than the original rate of the bond, the bond is at premium.
11) After the termination of employment of a registered representative with a member firm. The member firm must file a Form ____within ____ days after employment separation.
12) _____________are exempt from federal taxes.
13) Under FINRA rule, a gift of any kind cannot exceed _______ per person per year.
14) Frank bought 1000 shares of Nike through the service of a brokerage firm. The trade was completed on February 1st and for this transaction, the regular way settlement contract was used. What is the settlement date?
15) The FINRA rule 5130 prohibitis the sale of the securities on its first trading day to  anyone identified as a restricted person with beneficial interest. The list of restricted person includes
16) The securities exchange act of 1934 regulates new securities in the primary market.
17) A mutual fund has total assets of $10 million and $1 million in liabilities. If it has 2 million shares outstanding, what is its NAV per share of the mutual fund?
18) Under the investment company act of 1940, to be considered a diversified company you must meet the _____________ requirement.
19) A mutual fund has a net asset value or NAV of $15 and a public offering price or pop of $19. What is the sale charge percentage of the fund?
20) What is the formula to calculate dividend yield of a stock?

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