Get Finra Series-6 Exam Practice Questions - Real and Updated

Answer : B

A table providing detailed information on the various fees and expenses charged by a mutual fund can be found in the fund's prospectus. The other choices provide a wealth of information regarding such items as investment strategies, fund holdings, and financial statements, however.

Answer : B

Only Selections II and III are not subject to the fingerprinting requirements of the Securities Exchange Act of 1934. Firms that engage only in the sale of open-end investment company (mutual fund) shares, as described in Selection II, are exempt; and employees who do not engage in the sale of securities or activities involving any aspect of the securities or monies of a non -exempt firm are exempt, which is the case for the receptionist at the brokerage firm described in Selection III.

Answer : C

A face-amount certificate company sells its debt, which is backed by the assets owned by the company, to its investors. It does not invest primarily in bonds that sell at or above par value, and it does have management fees that are paid to the portfolio managers of the company.

Answer : D

Selections I and IV will always sell at a discount from their face values. Both Treasury bills and banker's acceptances are money market instruments that make no interim interest payments. They sell below their face values, and the investor earns the difference between their face values and the price paid. Treasury notes and industrial revenue bonds make interim interest payments, and they may sell below, above, or at their face values.

Answer : A

A mutual fund may not buy securities on margin or engage in short sales, under any circumstances. It may change its investment objective, with shareholder approval. It is permitted to invest in up to 3% of the outstanding voting stock of another investment company.