Free Series 6 Exam Braindumps (page: 29)

Page 29 of 83

Which of the following does not fall under the category of "sales literature," as defined by FINRA?

  1. a research report mailed only to a fund's existing clients
  2. an announcement containing some biological information on a registered representative who has just joined the firm
  3. PowerPoint slides that have been prepared to use in a seminar
  4. Reprints of an article that appeared in a financial publication about a specific mutual fund

Answer(s): B

Explanation:

An announcement containing some biological information on a registered representative who has just joined the firm does not fall under the category of "sales literature," as defined by FINRA since it does not constitute a sales solicitation. All of the other choices are regarded as "sales literature" by FINRA.



Which of the following securities always sell at a discount from their face values?

I). Treasury bills
II). Treasury notes
III). industrial revenue bonds
IV). banker's acceptances

  1. I only
  2. I and II only
  3. II and III only
  4. I and IV only

Answer(s): D

Explanation:

Selections I and IV will always sell at a discount from their face values. Both Treasury bills and banker's acceptances are money market instruments that make no interim interest payments. They sell below their face values, and the investor earns the difference between their face values and the price paid. Treasury notes and industrial revenue bonds make interim interest payments, and they may sell below, above, or at their face values.



Which of the following statements regarding both a Uniform Gifts to Minors account (UGMA) and a Uniform Transfers to Minors account (UTMA) is false?

  1. There can be only one custodian named on the account.
  2. The account must be established in the name of one minor child only.
  3. Once established, the account is irrevocable.
  4. The assets must be re-registered in the minor child's name when the child turns 18.

Answer(s): D

Explanation:

The false statement regarding both a UGMA and a UTMA is that the assets must be re- registered in the minor child's name when the child turns 18. The rule differs between the two types of accounts. The UGMA requires that the assets must be re-registered when the child reaches the "age of majority," as defined by the state, and the definition differs among states. Under the UTMA, the transfer of the account can be delayed until the minor child has reached the age of 25.



The essential difference between a 401(k) plan and a 403(b) plan is that:

  1. the 403(b) plan is for small businesses while the 401(k) plan is for large corporations.
  2. only employers can contribute to 403(b) plans while both employers and employees can contribute to 401(k) plans.
  3. the 403(b) plan is for employees of specific non-profit organizations whereas the 401(k) plan is for the employees of private corporations.
  4. contributions to 403(b) plans are always tax deductible, which is not the case with 401(k) plan contributions.

Answer(s): C

Explanation:

The essential difference between a 401(k) plan and a 403(b) plan is that the 403(b) plan is for employees of specific non-profit organizations whereas the 401(k) plan is for the employees of private corporations. The tax advantages and eligibility requirements of a 403(b) plan are the same as those for a 401(k) plan.



Page 29 of 83



Post your Comments and Discuss FINRA Series 6 exam with other Community members:

asl commented on September 14, 2023
all are relatable questions
CANADA
upvote

Av dey commented on August 16, 2023
can you please upload the dumps for 1z0-1096-23 for oracle
INDIA
upvote

myyadav commented on September 26, 2023
ALL ARE RELATABLE QUESTIONS. all in in exam paper
Anonymous
upvote

asl commented on September 14, 2023
ALL ARE RELATABLE QUESTIONS
CANADA
upvote

azmera abebe commented on August 25, 2023
it is a good questions ,so go on head
Anonymous
upvote

Av dey commented on August 16, 2023
Can you please upload the dumps for 1z0-1096-23 for oracle
INDIA
upvote