Exam (elaborations)
FINRA Series 6 Exam 280 Questions with Verified Answers,100% CORRECT
- Course
- Institution
FINRA Series 6 Exam 280 Questions with Verified Answers
[Show more]
Seller
Follow
paulhans
Reviews received
Content preview
FINRA Series 6 Exam 280 Questions with Verified AnswersRetail Communication - CORRECT ANSWER "any written (including electronic)
communication that is distributed or made available to more than 25 retail
investors within any 30 calendar-day period.
*Preapproval of a principal is required (prior to use).
Correspondence - CORRECT ANSWER written or electronic communication that is
distributed or made available to 25 or fewer retail investors within any 30-
calendar-day period
**Pre- or post-review of a principal is required (reviewed before or after use).
Institutional communication - CORRECT ANSWER any written communication that
is distributed or made available only to institutional investors but does not
include a member firm's internal communications.
**No preapproval of a principal is required
Public Appearance - CORRECT ANSWER participation in a seminar, webinar, forum
(including an interactive electronic forum such as a chat room), radio or television
interview, or other public appearance or public speaking activity.
**Preapproval of a principal may be required but is not mandated
independently prepared reprint (IPR) - CORRECT ANSWER consists of any article
reprint that meets certain standards designed to ensure that the reprint was
issued by an independent publisher and was not materially altered by the
member
**must be preapproved by a principal if the communication meets the definition
of a retail communication.
research report - CORRECT ANSWER is a document prepared by an analyst or
strategist, typically as part of a research team for an investment bank or broker-
dealer.
,**Research reports must be preapproved by a principal if the communication
meets the definition of a retail communication
electronic communications - CORRECT ANSWER Websites, whether sponsored by
the company itself or set up by an individual registered representative, are
considered retail communications and are subject to applicable filing and
recordkeeping rules. They must be reviewed and approved by a principal prior to
first use and must contain no exaggerated claims or misleading information.
Electronic bulletin boards - CORRECT ANSWER are also considered retail
communications, but a registered representative using one, or a chat room, need
not identify himself as a registered person. Use of an online interactive forum by a
registered representative must be approved by a principal, although each post
does not require principal approval
Generic advertising - CORRECT ANSWER promotes securities as an investment
medium but does not refer to any specific security. Generic advertising often
includes information about:
-the securities investments that companies offer,
- the nature of investment companies,
- services offered in connection with the described securities,
- explanations of the various types of investment companies,
- descriptions of exchange and reinvestment privileges, and
- where the public can write or call for further information
Rule 3110 - CORRECT ANSWER Each member must retain copies of its registered
representatives' correspondence according to the recordkeeping rule
Filing Requirements during 1st year of operation - CORRECT ANSWER FINRA will
require the member to file any retail communication that is published or used in
any electronic or other public media (e.g., any generally accessible website,
newspaper, magazine or other periodical, radio, television, telephone or audio
recording, video display, sign or billboard, motion picture, or telephone directory
[other than routine listings]) with FINRA at least 10 business days before first use
(prefiling).
,Filing Requirements for an "Established Firm" (after completion of 1st year of
registration) - CORRECT ANSWER may file retail communications relating to
investment companies (including mutual funds, variable contracts, and UITs)
within 10 business days of first use (post-filing).
Whether a first year firm or not, retail communications for investment companies
(including mutual funds, variable contracts, and UITs) that include a ranking or
comparison that is generally not published or is the creation of the investment
company or the member must be filed with FINRA.... - CORRECT ANSWER at least
10 business days before first use (prefiling).
If the ranking or comparison is generally published or is the creation of an
independent entity (e.g., Lipper or Morningstar), what rules apply? - CORRECT
ANSWER the usual filing rules for filing will apply (i.e., within 10 business days of
first use [post-filing])
Spot Checks - CORRECT ANSWER Each member's retail communications are
subject to routine spot checks. Members must comply with written requests for
such material by FINRA. Material filed previously with FINRA under this rule need
not be resubmitted.
Exemptions From Filing and Spot Check Requirements - CORRECT ANSWER -retail
communications that previously have been filed with the department and that are
to be used without material change;
-retail communications that do not make any financial or investment
recommendation or otherwise promote a product or service of the member;
-retail communications that do no more than identify a national securities
exchange symbol of the member or identify a security for which the member is a
registered market maker;
-retail communications that do no more than identify the member or offer a
specific security at a stated price;
-press releases that are made available only to members of the media;
-any reprint or excerpt of any article or report issued by a publisher ("reprint")
-correspondence;
-institutional communications;
-communications that refer to types of investments solely as part of a listing of
products or services offered by the member;
, -retail communications that are posted on an online interactive electronic forum;
and
-press releases issued by closed-end investment companies that are listed on the
New York Stock Exchange (NYSE).
Ranking Entity - CORRECT ANSWER refers to any entity that provides general
information about investment companies to the public, that is independent of the
investment company and its affiliates, and whose services are not procured by the
investment company or any of its affiliates to assign the investment company a
ranking
bond mutual fund volatility rating - CORRECT ANSWER is a description issued by
an independent third party relating to the sensitivity of the net asset value (NAV)
of a portfolio of an open-end management investment company that invests in
debt securities to changes in market conditions and the general economy, and is
based on an evaluation of objective factors, including the credit quality of the
fund's individual portfolio holdings, the market price volatility of the portfolio, the
fund's performance, and specific risks, such as interest rate risk, prepayment risk,
and currency risk.
Required Disclosures of Bond Mutual Fund Volatility Ratings - CORRECT ANSWER
The name of the entity that issued the rating must be disclosed along with:
-the date of the current rating,
-a link to a website that includes the criteria and methodology used,
-a statement that there is no standard method to determine the rating a
description of the types of risk the rating measures (e.g., short-term volatility),
and
-a statement that there is no guarantee the fund will continue to have the same
rating or perform in the future as rated
Any sales literature that contains performance data for an investment company
other than a money market fund must include... - CORRECT ANSWER -a legend
disclosing that the performance data quoted represents past performance;
-that past performance does not guarantee future results;
-that the investment return and principal value of an investment will fluctuate so
that an investor's shares, when redeemed, may be worth more or less than their
original cost; and
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller paulhans. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for CA$24.64. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
75632 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now