Stock Market Study Comprehesive US stock analysis and high probability investing

September 29, 2012

Series 6 Test Seven Questions

Filed under: Securities License Exam — Tags: — admin @ 11:43 am

Question 1

At retirement, your customer decides to annualize his variable annuity contract. After his final purchase payment, he has 1,857 accumulation units. What factors will be considered when determining the value of the first payment?

  • Value of one accumulation unit
  • Conversion value shown in the company’s annuity table
  • Value of his share of the separate account
  • I and II only
  • I and III only
  • II and III only
  • I, II and III

Question 2


To which of the following does the term selling dividend refer?

  • Encouraging mutual fund customers to sell their holdings just before the fund declares a dividend payment
  • Enticing customers to buy mutual fund shares just before a dividend payment
  • Withdrawing dividends rather than reinvesting these amounts in additional shares
  • Encouraging investors to postpone purchases of mutual fund shares until after the ex-date for a dividend distribution
Question 3


Regulation T addresses the extension of credit from

  • broker/dealer to customers
  • banks to broker/dealers
  • banks to customers
  • both banks and broker/dealers to customers
Question 4

Which of the following must review sales literature and advertising material to be used by a member firm in connection with the offering of investment company shares?

  • Firm’s advertising manager
  • NASD
  • SEC
  • I only
  • I and II only
  • II only
  • II and III only
Question 5


Selling mutual fund shares at a dollar amount immediately below the dollar amount stated in the prospectus that would qualify an investor to receive a reduced sales charge is called

  • breakpoint selling
  • conditional orders
  • selling dividends
  • freeriding and withholding
Question 6

Which of the following investments is(are) suitable for a Roth IRA?

  • uncovered calls
  • covered calls
  • commodity futures
  • international bond mutual funds
  • I, II and III only
  • II, III and IV only
  • II and IV only
  • IV only
Question 7

To register new securities, an investment company must

  • supply detailed information about itself to the SEC
  • supply detailed information about new securities to the SEC
  • obtain the SEC’s approval of the issue
  • I, and II only
  • I and III only
  • II and III only
  • I, II and III only
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