Exam Result - Securities Institute

Series 6 Exam Prep Products Compare Study Packages Series 6 Overview Series 6 Tutoring

Free Series 6 Sample Exam Questions Results

You scored 50% on the free Series 6 practice questions - see below for more details.

If you have any other questions or concerns, please let us know!

Your exam results:

50% - sorry, you failed

Exam: Free Series 6 Sample Exam Questions

Time Spent: 00 hours 4 minutes 53 seconds

Max. Marks: 10

Marks Obtained: 5

View All Series 6 Exam Prep Products

Correct Answer

Wrong Answer

Q. No	Question	Correct Answer	Your Answer	Explanation
1.	A broker dealer that is a selling group member for a mutual fund may do all of the following except to:	Purchase shares of the mutual fund from the sponsor in anticipation of a large order from an institutional client	During the sales presentation to a client, use a prospectus that is 15 months old	A broker dealer may never purchase shares of a mutual fund in anticipation of a customer’s order.
2.	A customer has $ 24,000 invested in a growth fund offered by ABX, a large fund family. The investor would like to move the money into a balanced portfolio. Her representative immediately recommends a balanced fund offered by the HMV fund family. Which of the following is true:	This is an example of switching funds and is a violation	This is an example of switching funds and is a violation	This is an example of switching funds and is a violation. Most mutual fund families offer conversion privileges, which will allow the investor to move money from one portfolio to another without being charged another sales charge
3.		II, III and IV	IV only	A broker dealer may purchase shares from an investment company if it has a selling agreement with the company and the shares are being purchased to fill a customer’s order or for the firm’s investment account. A broker dealer may not give a discount to a customer on mutual fund shares.
4.	A mutual fund has a bid of $11 and an ask of $11.40. The mutual fund has sent out a dividend distribution of 75 cents and a capital gain distribution of 90 cents over the last 12 months. What is the mutual fund’s current yield?	6.57%	6.57%	The current yield of a mutual fund may only be based on dividends and must use the highest POP to determine the current yield. Use the following formula: annual income / current market price = .75 / 11.40 = 6.57
5.	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?	10 %	5 %	A mutual fund calling themselves a diversified fund is limited to owning no more than 10% of any one company
6.	A mutual fund investor has 500 shares of XYZ growth fund which has a NAV of 22.30 and a POP 23.05. The investor wants to invest the money in the biotech fund offered by XYZ, which has a NAV of 17.10 and a POP of 18. XYZ offers conversion privileges how many shares will the investor be able to purchase of the biotech fund?	652	652	The investor will redeem the shares of the growth portfolio at the NAV and will purchase the shares of the biotech portfolio at the NAV because XYZ offers conversion privileges. The investor will receive $11,150 upon redemption and will be purchasing the biotech fund at 17.10, for a total of 652 shares.
7.	A mutual fund must inform its shareholders of the right to reinvest dividends at the net asset value:	Annually	Quarterly	All shareholders must be notified of the availability of a dividend reinvestment plan at least once per year.
8.	An annuity has an AIR of 4 %. The separate account earns 5 % in April, and 7% in May. If the separate account earns 4% in June, the payment to annuitants in July will be:	The same as the payment in June	Higher than the payment in June	The separate account’s performance equals the AIR, so the payment will remain the same as the payment in June.
9.		I, II and III	I, II and III	FINRA rules prohibit a principal underwriter of variable annuity products from selling to a broker dealer unless (1) a selling agreement is in effect between both parties, (2) the broker dealer is a FINRA member and (3) the broker dealer agrees to refund all sales concessions to the insurance carrier if the customer cancels (redeems) the contract within seven business days after the carrier accepts the contract application.
10.	Which of the following statements is (are) true of a variable annuity’s separate account? I. It is used for the investment of monies paid by variable annuity contract holders II. It is separate from the insurance company’s general investments III. It is operated in a manner similar to an investment company IV. It is as much a security as it is an insurance product	I, II, III, and IV	I, II, III, and IV	The separate account is used for the monies invested in variable annuities. It is kept separate from the general account and operated very much like an investment company. It is considered both an insurance product and an investment product.

Combination Packages

All of our combination packages are discounted. Check out the prices! Purchase one of the following combination packages if you are really serious about passing your exam in the quickest possible time.