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Free Series 6 Exam Braindumps (page: 40)

Page 40 of 83
PDF with 325 Questions

After three warnings, Honest Investments was forced to terminate Sly Conman, one of its representatives, for making inaccurate statements when offering its mutual fund products to customers. Given this scenario:

  1. Honest must provide FINRA with an electronic notification of the termination within 48 hours and provide a written copy of the submitted form to Mr. Conman within 30 days of the filing.
  2. Honest must provide FINRA with an electronic notification of the termination within 30 days and provide a written copy of the submitted form to Mr. Conman within that same period of time.
  3. Honest must provide FINRA with an electronic notification of the termination within 48 hours and provide a written copy of the submitted form to Mr. Conman within 10 business days.
  4. Honest must provide FINRA with an electronic notification of the termination within 48 hours and mail a written copy of the submitted form to both FINRA and Mr. Conman within 14 days.

Answer(s): B

Explanation:

When Honest Investments terminates Mr. Conman, the firm must provide FINRA with an electronic notification of the termination within 30 days and provide a written copy of the submitted form to Mr. Conman within that same period of time.



Doc purchased shares of the MedTech Fund at its net asset value of $9.66 a share at the beginning of the year. The fund distributed dividends of $0.12 a share and capital gains of $0.10 a share during the year.
The net asset value at the end of the year was $12.00. The fund's total return was:

  1. 21.3%.
  2. 26.5%.
  3. 25.5%.
  4. 10.1%.

Answer(s): B

Explanation:

The fund's beginning NAV was $9.66, its ending NAV was $12.00, and its distributions during the year totaled $0.22 a share, so the total return on the MedTech Fund over this period was 26.5%. Total return can be calculated as:
[(ending NAV + distributions) - beginning NAV]/beginning NAV = [($12.00 + $0.22) - $9.66]/$9.66 = 26.5%.



Which of the following investor characteristics is inconsistent with an aggressive investment strategy?

I). short investment horizon
II). high risk tolerance
III). young

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

Answer(s): C

Explanation:

The investor characteristic that is inconsistent with an aggressive investment strategy is a short investment horizon. The shorter the investment horizon, the less aggressive the investment strategy should be, all else equal, because a shorter investment horizon means the investor has less opportunity to ride the up-and-down waves of the market.



The difference between a "redemption fee" and a "rear-end load" is that:

  1. the redemption fee is another name for a 12b-1 fee, which is an annual expense associated with the fund.
  2. a rear-end load is used to compensate a salesperson who has sold shares of the fund; a redemption fee is charged to offset the expenses a fund incurs in processing share redemptions.
  3. the redemption fee refers to charges incurred by the fund when it sells securities it owns; the rear-end load is a fee that is incurred by investors in the fund when they redeem their shares of the fund.
  4. There is no difference. These are synonymous terms.

Answer(s): B

Explanation:

The difference between a "redemption fee" and a "rear-end load" is that a rear-end load is used to compensate a salesperson who has sold shares of the fund, while a redemption fee is charged to offset the expenses a fund incurs in processing share redemptions.



Page 40 of 83



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

asl commented on September 14, 2023
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myyadav commented on September 26, 2023
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Anonymous
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asl commented on September 14, 2023
ALL ARE RELATABLE QUESTIONS
CANADA
upvote

azmera abebe commented on August 25, 2023
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Anonymous
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Av dey commented on August 16, 2023
Can you please upload the dumps for 1z0-1096-23 for oracle
INDIA
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