Free Finra Series-6 Exam Dumps

A bankers' acceptance is specifically excluded from the definition of a security under the Securities Exchange Act of 1934 as long as its maturity at issue does not exceed 9 months. All the other choices are specifically named under the Act's definition of a security.

An individual who works as an agent for a broker and occasionally gives investment advice to clients who request it, but receives no additional compensation for doing so would not fall under the definition of ''investment adviser,'' under federal guidelines. In 1987, Release IA -1092 expanded the definition to include individuals providing investment advice to entertainers or athletes, among others. The compensation need not be monetary. Box seats at athletic events would be considered compensation for advisory services.

The ''catch-up provision'' that has been established for both the traditional and Roth IRAs applies to people who are 50 and older.

The ''statement of additional information'' (SAI) that mutual funds and closed-end funds are required to produce usually contains some biographical information on the officers and directors of the fund. The SAI need only be provided to prospective investors upon request, and it is not sent to shareholders of the fund. Shareholders of the fund receive annual and semiannual reports from the fund, however.

All of the choices constitute public appearances as defined by FINRA.A public appearance is defined by FINRA as ''participation in a seminar, forum (including an interactive electronic forum), radio or television interview, or other public appearance or public speaking activity.''

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.

If you cannot get any personal information from a client, you cannot legitimately recommend (or execute) an asset allocation for him. You can advise him to invest the money in a money market mutual fund instead of holding it as cash since this will provide him with a small return on his money. You cannot advise him to invest the money in an S&P 500 Index fund, which would subject him to more risk.

This would be considered an unsuitable recommendation and is in violation of securities' laws.

Yes. Mr. Schaker has violated securities laws in recommending a fund that he doesn't even seem to have researched very well to his existing clients, some of whom may not be suitable candidates for a global fund, which invests in foreign as well as domestic securities. Although FINRA's rules do indicate that it is not trying to stymie legitimate sales efforts, Mr. Schaker's actions do not fall within this category. There is no research that indicates new funds tend to offer abnormally high funds for the first 12 months of their existence, and if Mr. Schaker would have implied that, he could be up on criminal fraud charges. There is no law, however, that prohibits a registered representative from recommending a load fund to a client, as long as there is a legitimate reason for doing so.

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.

The true statement is that reinvested dividends and capital gain distributions count toward reaching a breakpoint under the rights of accumulation. The rights of accumulation are not something that all mutual funds with front-end loads must offer. There is no time limit on the accumulation period. The rights of accumulation and the letter of intent are two separate animals; neither has anything to do with the other.