Series 6 Sample Questions

Series 6 Sample Questions

The NASD's gift rule applies to all of the following except:

A) Non cash gifts
B) Cash Gratuities
C) Entertainment
D) Employment contracts to provide temporary services to another member

A mutual fund has been seeking to attract new customers to invest in its growth fund. They have been running an advertising campaign where they have been marketing themselves as a diversified mutual fund. How much of any one company may they own?

A) 9 %
B) 75%
C) 5 %
D) 10 %

In order for a retired agent to continue to receive commission on the book of business they have built over their career they must have:

A) The approval of the NASD
B) The Approval of Their SRO
C) A contract
D) A no compete clause

Outstanding stock is best described as:

A) The number of shares that were issued as an IPO
B) The number of shares that have been sold to the public
C) The number of shares that the public owns
D) The number of shares that were repurchased from the public by the company

An Investor needs to calculate her capital gains on her Mutual Fund which she is redeeming now. She bought 1000 shares for $8.25 per share four years ago, and she is receiving $12.25 per share today. What is her capital gain/loss per share and in total?

A) $20.50; $205,000
B) $40; $40,000
C) $4; $4,000
D) $4; $40,000

Unauthorized trading is:

A) Made without the customer’s knowledge
B) All of the choices listed are correct
C) Made by a representative who does not have discretionary power over the account
D) Made for the benefit of a customer’s account

The prime rate is:

A) The rate that banks charge their most credit worthy corporate customers on loans
B) The rate that banks charge to broker dealers to finance their customers' margin purchases
C) The rate that the Federal Reserve Bank charges member banks on loans
D) The rate that member banks charge each other for overnight loans

An investor who wants to take action against firm or representative has how long to bring the case to arbitration:

A) 3 years
B) 2 years
C) 6 years
D) 1 year

The Maloney Act of 1938 was an amendment to:

A) The Over the Counter Improvement Act of 1935
B) The Securities Exchange Act of 1934
C) The Securities Act of 1933
D) The New Market Act of 1936

XYZ Incorporated has 15,000,000 shares of common stock authorized, 11,000,000 shares have been issued and there are 4,000,000 shares of treasury stock. How many shares are outstanding?

A) 7,000,000
B) 15,000,000
C) 8,000,000
D) 11,000,000