Free Practice FINRA Series-6 Exam Questions 2025

Stay ahead with 100% Free Investment Company and Variable Contracts Products Representative Series-6 Dumps Practice Questions

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Total 328 Questions | Updated On: Jun 03, 2025

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Question 1

In order for the Invest4U Mutual Fund to qualify as a regulated investment company under Internal Revenue Code Subchapter M, it must:

A : distribute at least 90% of its net investment income to its shareholders.

B : distribute at least 98% of its net income from capital gains to its shareholders.

C : invest at least 75% of its monies in diversified securities.

D : Both A and B are required for Invest4U to qualify as a regulated investment company.

Answer: D

Question 2

Which of the following investment companies will always be passively managed?

A : a face-amount certificate company

B : a unit investment trust

C : a mutual fund

D : a closed-end investment company

Answer: B

Question 3

Which of the following steps in the underwriting process will occur last?

A : The underwriting syndicate is formed.

B : The selling group is organized.

C : The public offering price is set.

D : A red herring prospectus is circulated to the public.

Answer: C

Question 4

Which of the following do not fall under the category of “advertisement,” as defined by FINRA? I. scripts used in telemarketing the products of the member firm II. a website maintained by the member firm III. research reports that the member firm distributes to both its existing clients and its prospective clients IV. sales material that a member firm distributes only to its institutional clients

A : I only

B : IV only

C : I, III, and IV only

D : III and IV only

Answer: C

Question 5

Uncle Scrooge (uncharacteristically) wants to set up a Section 529 college savings plan for his nephew, Louie. If he does so:

A : he can contribute at most $2,000 a year.

B : his contributions will be tax deductible.

C : any withdrawals that Louie makes to cover tuition, books, and room and board will be free from both federal and state taxes.

D : and Louie decides not to go to college, Uncle Scrooge can name Louie’s brother, Huey, as the beneficiary of the plan without any tax consequences.

Answer: D

Page: 1 / 66

Total 328 Questions | Updated On: Jun 03, 2025

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