Series 6 Practice Questions

Welcome to your Series 6 Practice Exam

1) An example of an over-the-counter securities market is the New York Stock Exchange (NYSE).
2) What is the Semi-annual payment of a bond with a 5% nominal yield?
3) A put option gives you, the buyer, the right to buy the stock but you are not obligated to do so.
4) In a cash settlement, the settlement date is the same day of the trade date.
5) If a transaction or total of multiple transactions exceed _________ per ________, a currency transaction report must be filed with the Treasury Department’s Financial Crimes Enforcement Network (FinCEN.)
6) _____________are exempt from federal taxes.
7) A company pays $2.50 dividend . What is the annual dividend?
8) _____________stocks are shares that a corporation is permitted to issue.
9) To maintain your Series 6 license you must complete continuing education. The continuing education consists of a _______ element and ______ element.
10) Under FINRA rules a mutual fund 12b-1 fee cannot exceed ______.
11) An investment company is required to register with the SEC as an investment company if ________ or more of its assets are invested in securities.
12) When the current yield is more than the nominal yield, the bond is trading at a discount.
13) A shareholder invested in a mutual fund with a letter of intent to invest $25,000. His original investment was $5,000 and after two months the account value  appreciated to $8000. For him to complete the letter of intent, how much money  must he deposit in the account?
14) When the sale charge is applied at the time of purchase, this type of mutual fund is referred as a _________________.
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) Under the investment company act of 1940, to be considered a diversified company you must meet the _____________ requirement.
17) The market price of a stock is $50 and the conversion price is $10, what is the parity price of the bond?
18) Securities Investor Protection Corporation (SIPC) protects registered representative from the risk of broker/dealer bankruptcy.
19) Government Treasury Notes (T-notes) pay interest every _________
20) FINRA rule 2211 requires all firms and registered representatives to take reasonable steps to ensure that investment recommendations, and trade transactions are suitable to an investor.

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