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FINRA Investment Company and Variable Contracts Products Representative Examination (IR) : Series6

Updated: May 28, 2026

Q & A: 325 Questions and Answers

Series6 Braindumps VCE
  • Exam Code: Series6
  • Exam Name: Investment Company and Variable Contracts Products Representative Examination (IR)

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FINRA Investment Company and Variable Contracts Products Representative Examination (IR) Sample Questions:

1. Which of the following securities laws regulates the organizational structure and day-to-day operations of
investment companies?

A) The Securities Exchange Act of 1934
B) The Investment Company Act of 1940
C) The Investment Advisers Act of 1940
D) The Securities Act of 1933


2. In mid-September, the stock of Amazon.com, Inc. (AMZN) is selling for $147.A January call option on the
stock is selling for $6.10 and has a strike price of $160. This call option is:

A) out of the money.
B) at the money.
C) overpriced. No one should pay $6.10 for the right to buy a share of stock for $160 when its current
market price is only $147.
D) in the money.


3. Tex Payor is an investor in the Invest4U Mutual Fund. The manager of the fund, fearing a substantial
decline in the stock market, sold a lot of the fund's holdings to lock in profits. As a result, the fund earned a
lot of long-term capital gain income. Which of the following statements is true regarding the tax treatment
of this income?

A) Tex must pay taxes on his proportionate share of the long-term capital gain income earned by Invest4U,
whether distributed or not.
B) None of the above is a true statement.
C) Tex must pay taxes on that portion of the long-term capital gain income that Invest4U distributes to
him.
D) Tex must pay taxes only on dividend income distributed by Invest4U.The mutual fund itself pays tax on
any capital gains it earns.


4. GoForBroke Broker-Dealers has distributed a list of ten mutual funds that it suggests are top-notch funds
worthy of recommendation by GoForBroke's agents. Coincidentally, all the funds on this list also happen
to be those that execute the majority of their trades through GoForBroke. Is GoForBroke in violation of
any FINRA rules?

A) Yes. GoForBroke is prohibited from selling shares of mutual funds that execute their trades through the
broker-dealer. This rule is in place to avoid conflicts of interest.
B) No. GoForBroke only distributed a list of fund names; it did not offer its agents any form of additional
compensation for selling the funds on that list.
C) Yes. By distributing a list naming specific funds that coincidentally all happen to execute a lot of trades
through GoForBroke, the broker-dealer is violating FINRA's anti-reciprocal rule.
D) No. As long as the list consists of more than five funds, GoForBroke has not violated any FINRA rules.


5. On Monday, August 2nd, the Board of Directors of Baldor Electric (BEZ) announced that the firm would
pay a dividend of $0.17 a share. Payment will be made on Friday, October 8th to shareholders of record
as of Friday, September 17th.In order to receive this dividend check, an investor would have to purchase
shares of Baldor Electric before which day?

A) Friday, September 17th.
B) Wednesday, September 15th.
C) Friday, October 8th.
D) Monday, August 2nd.


Solutions:

Question # 1
Answer: B
Question # 2
Answer: A
Question # 3
Answer: C
Question # 4
Answer: C
Question # 5
Answer: B

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