Last Updated: Aug 22, 2026
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| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Obtains and Verifies Customers' Purchase and Sales Instructions | 10% | - Order processing and transaction procedures
|
| Topic 2: Opens Accounts After Obtaining and Evaluating Customer Financial Profile | 16% | - Customer account types and documentation
|
| Topic 3: Seeks Business for the Broker-Dealer from Customers and Potential Customers | 24% | - Prospecting and communication with clients
|
| Topic 4: Provides Customers with Information About Investments | 50% | - Investment company securities and variable contracts
|
1. Joe Cool is a member of the All Greek Fraternity. A few of the alumni of his fraternity sat for the FINRA
Series 6 exam over the past couple of years and, using their cell phones, took pictures of the exam
questions. They forwarded these to their fraternity to be included in the test bank file the fraternity keeps
in its study room. Have there been any violations of FINRA/NASD rules in this instance?
A) No. Rule 2110 only prohibits the reproduction and distribution of a previously administere d FINRA
exam for study purposes if the exams are being sold. As long as there is no compensation involved, a
violation has not been committed.
B) Both A and C are true statements.
C) No. It is standard practice for sororities and fraternities to compile test banks of old exams, and since
the forwarded tests are not copies of an actual future exam that will be administered, there has been no
violation of any rules.
D) Yes. It is a violation of Rule 2110 for an exam-past or present-to be reproduced and distributed for
study purposes.
2. Marge is 57 and wants to retire early. Since she is not yet eligible for social security, she wants to begin
tapping a variable annuity to which she has been contributing for the last 20 years. Which of the following
statements regarding her withdrawals is true?
A) There is no way that Marge can begin making withdrawals without facing a 10% penalty for early
withdrawal unless she is disabled or needs the money for medical expenses.
B) Marge can begin her withdrawals without penalty under IRS rule 72(t) as long as she does so following
the specific guidelines for a period of five years; however, the withdrawals will be subject to taxation.
C) Marge can begin her withdrawals tax-free and without penalty under IRS rule 72(t) as long as she does
so following the specific guidelines for a period of five years.
D) Marge can begin her withdrawals tax-free and without penalty under IRS rule 72(t) as long as she does
so following the specific guidelines until she turns 59 1/2 , at which point she will no longer have to follow
the specific guidelines.
3. Which of the following would not constitute a "public appearance," as defined by FINRA?
A) A registered representative starts a blog that discusses the pros and cons of various types of
investments.
B) The investment adviser of a tech fund that has had phenomenal returns in the past 12 months
responds to some questions from a business newscaster via a remote monitor.
C) All of the above constitute public appearances as defined by FINRA.
D) A registered representative gives a free seminar on the topic of asset allocation to members of her
church.
4. Tex Payor owns 500 shares of Amazon.com, Inc. that he bought seven years ago when the stock price
was $18 a share, at which time he paid a commission of $12.95 to purchase the stock. At the beginning of
this year, Amazon was selling for $89 a share. Today, December 31st, Amazon's stock closed at $152 a
share. Based on this information, what must Tex include on this year's tax return as taxable income from
his investment in Amazon?
A) the value of the stock on December 31st minus the price he paid for it, which includes the commission
he paid, divided by the 7 years he has owned the stock: $152 - ($18 + $12.95) x 500 shares = $60,525 / 7
= $8,646
B) none of the above
C) only the capital appreciation on the stock this year: $63 a share x 500 shares = $31,500
D) the capital appreciation on the stock this year minus the commission he originally paid to purchase the
stock:($63 - $12.95) x 500 = $25,025
5. Which of the following investments would have the least interest rate risk?
A) a 3-year Treasury STRIP
B) a 15-year, AAA-rated corporate bond
C) a 20-year, AAA-rated municipal bond
D) a 6-month Treasury bill
Solutions:
| Question # 1 Answer: D | Question # 2 Answer: B | Question # 3 Answer: C | Question # 4 Answer: B | Question # 5 Answer: D |
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