Finra Series-6 Quiz 2 Topic 1 Questions 6-10

Question: 1

Which of the following is not considered to be a ''security'' as defined by the Securities Exchange Act of 1934?

Aan interest in an oil drilling lease

Ba collateral trust certificate with an initial maturity of 5 years

Ca straddle that expires in 3 months

Da bankers' acceptance, issued with a maturity of 4 months

Show Answer

Question: 2

Which of the following persons would not fall under the definition of ''investment adviser,'' under federal guidelines?

Aan individual who advises only Oprah Winfrey on her investment portfolio and receives a nice salary for doing so.

Ba Denver-based, broker-dealer that is registered as a broker-dealer with the SEC and provides investment advice to members of the Denver Broncos, the Colorado Rockies, the Denver Nuggets, and the Colorado Avalanche organizations in exchange for box seats at their games. No monetary compensation is expected or given.

Can 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.

DNone of the above would fall under the definition of ''investment adviser,'' as defined by the Investment Advisers Act of 1940.

Show Answer

Question: 3

The ''catch-up provision'' that has been established for both the traditional and Roth IRAs applies to people of what age?

A50 and older

B55 and older

C60 and older

D62 and older

Show Answer

Question: 4

The ''statement of additional information'' (SAI) that mutual funds and closed-end funds are required to produce:

Amust be provided to prospective investors whenever an offer to sell shares of these funds is made.

Bmust be sent to shareholders of the fund on at least a semiannual basis.

Cusually contains some biographical information on the officers and directors of the fund.

DBoth A and B are true statements.

Show Answer

Question: 5

Which of the following would not constitute a ''public appearance,'' as defined by FINRA?

AA registered representative gives a free seminar on the topic of asset allocation to members of her church.

BA registered representative starts a blog that discusses the pros and cons of various types of investments.

CThe investment adviser of a tech fund that has had phenomenal returns in the past 12 months responds to some questions from a business newscaster via a remote monitor.

DAll of the above constitute public appearances as defined by FINRA.

Show Answer

Finra Series-6 Quiz:2 Topic:1 Questions:6-10