Series 6

Front 1

If an elderly widower wants his investments to provide high current income, the representative should recommend:

A)a zero-coupon bond.

B)a growth fund.

C)a mutual fund that matches the investor's stated objective.

D)the ABC Widow Fund.

Back 1

The correct answer was: a mutual fund that matches the investor's stated objective.

Investors should be careful not to be misled by a mutual fund's name. Although the name of a fund should bear a resemblance to its objective, the investor and the representative should read the fund's prospectus carefully to be sure that the fund's objective matches the investor's objective. Growth funds and zero-coupon bonds are not designed to meet the requirement of providing maximum current income.

Front 2

When a client opens an account, which of the following must appear on the application?

1. Client's name and Social Security number.
2. Client's educational background.
3. Client's signature.
4. Principal's signature.

A)I and III.

B)II and III.

C)II and IV.

D)I and IV.

Back 2

The correct answer was: I and IV.

When a customer opens an account, the information needed includes, but is not limited to, the customer's name, any employment with another FINRA member firm, and the customer's tax identification number. In addition, the client need not sign the new account form, but it must be signed by a principal of the firm.

Front 3

Under SEC Rule 498, a summary prospectus may be used in a mutual fund sales presentation resulting in a sale:

A)only when the statutory prospectus will be mailed within 3 days or made available for download.

B)under no circumstances because the summary prospectus is only used to encourage potential investors to request the full prospectus.

C)only when preceded or accompanied by the fund's full prospectus.

D)only when the client does not request the statement of additional information.

Back 3

The correct answer was: only when the statutory prospectus will be mailed within 3 days or made available for download.

SEC Rule 498 permits sales to be made using a summary form of the prospectus. The final, or statutory, prospectus must either be available by mail (within 3 days) or by an online download.

Front 4

Excessive activity in a customer's account primarily for the purpose of generating excess commissions for the registered representative is referred to as:

A)hypothecating.

B)churning.

C)selling dividends.

D)commingling.

Back 4

The correct answer was: churning.

Excessive activity for the purpose of generating commissions is known as churning.

Front 5

A FINRA member firm is found guilty of some but not all of the charges brought against it by the Department of Enforcement. An appeal:

1. must be made within 25 days of the decision.
2. must be made within 30 days of the decision.
3. is filed with FINRA.
4. stays the effective date of any sanction other than a bar or expulsion.

A)I and IV

B)II and IV

C)I and III

D)II and III

Back 5

The correct answer was: I and IV

An appeal must be filled with the National Adjudicatory Council within 25 days of the decision or the decision is final.

Front 6

A client who purchased a variable life insurance policy is not pleased with his decision. He has the right to:

A)cancel the policy and receive a full refund of all sale charges paid within the first 24 months of issue.

B)convert the policy into a whole life policy using the original policy issue date.

C)convert the policy into any form of term insurance currently offered by the company.

D)cancel the policy and receive a full refund of all premiums paid within the first 24 months of issue.

Back 6

The correct answer was: convert the policy into a whole life policy using the original policy issue date.

A unique feature of variable life insurance is the ability to convert or exchange the policy into a whole life policy as of the original policy issue date for a period of no less than 24 months (two years) from the date of issue. For those insurance companies that do not offer whole life policies, the prospectus will indicate the available exchange policy, frequently universal life.

Front 7

The ABC fund offers breakpoints and letters of intent, and one of your customers would like to add some of his past investments in that fund to his current investments to reach a breakpoint. If the date is June 1, which of his past investments may be included?

A)December 18 of last year.

B)April 10 of this year.

C)June 1 of last year.

D)February 18 of this year.

Back 7

The correct answer was: April 10 of this year.

A letter of intent may be backdated by 90 calendar days.

Front 8

Your manager is reviewing the activity in your customer accounts to detect trading irregularities. If he is looking for churning, among the things he will look at are:

1. the financial resources of the account.
2. the number of winning trades versus losing trades.
3. the objectives of the account.
4. the marital status of the customer.

A)I and III.

B)II and IV.

C)I and II.

D)II and III.

Back 8

The correct answer was: I and III.

Inspecting an account for churning focuses primarily on comparing account activity to the account's financial resources and objectives. The number of winning versus losing trades does not influence a determination that excessive trading has taken place.

Front 9

What is the conversion ratio of a convertible bond purchased at par value and convertible at $50?

A)50:1:0

B)20:1

C)2:1

D)5:1

Back 9

The correct answer was: 20:1

The $1,000 par value divided by the $50 conversion price equals 20 shares per bond.

Front 10

An investor traveling abroad receives communication from his broker/dealer that a stock he has been following has moved to a price of $17 per share, including all commissions and expenses. The investor wishes to buy 100 shares at that price. He executes an international wire transfer for the equivalent of $1,700 in euros ($2,600 USD) and sends it to his broker/dealer with an order to buy. What action is called for by the broker/dealer?

A)Because the wire transfer is received from abroad, the broker/dealer may not accept it.

B)The transaction should be reported within 15 days to the Office of Foreign Assets Control (OFAC).

C)The broker/dealer must report wire transfers in excess of $2,500 on FinCEN Form 112.

D)This transaction need not be reported.

Back 10

The correct answer was: This transaction need not be reported.

The Bank Secrecy Act requires firms to maintain a record of wire transfers involving $3,000 or more. Reports to OFAC would involve suspected terrorists and other threats to the United States.

Front 11

A registered representative is opening both cash and margin accounts for a corporation. Which of the following documents will he need?

1. The corporation's charter, account resolution, and bylaws.
2. A copy of the corporation's most recent balance sheet.
3. The corporation's last three profit and loss statements.
4. The name(s) of natural persons authorized to trade the account.

A)I and III.

B)II and IV.

C)I and IV.

D)II and III.

Back 11

The correct answer was: I and IV.

Corporate accounts are generally those established by the officers of a corporation. Such accounts require a copy of the corporate resolution naming the authorized person(s) and account trading limits (if any). If it is to be a margin account, a copy of the corporate charter and a signed margin agreement are also required.

Front 12

A resident of Georgia purchases an Albany, New York general obligation bond. If the investor is in the 28% federal income tax bracket and the 6% state income tax bracket, which of the following statements relating to this bond's interest are TRUE?

1. It is free of federal income tax.
2. It is federally taxable as ordinary income.
3. It is free of state income tax.
4. It is taxable as ordinary income on the state level.

A)I and III.

B)II and IV.

C)II and III.

D)I and IV.

Back 12

The correct answer was: I and IV.

The interest paid to an investor on a municipal general obligation bond is always free of federal income tax. In most cases, there is no state income tax if the issuer is a political subdivision of the investor's state of residence. In this case, a Georgia resident will be liable for Georgia state income tax on the interest paid on a New York bond.

Front 13

A registered representative would likely be accused of a prohibited practice if he encouraged a customer to switch her mutual fund when:

A)her retirement plans change dramatically.

B)her investment objective changes.

C)the fund's ranking changes in her favorite financial periodical.

D)her tax status changes significantly.

Back 13

The correct answer was: the fund's ranking changes in her favorite financial periodical.

Significant changes in an investor's investment objective, tax status, or retirement planning may be justification for switching from one fund to another. Constantly switching to a higher rated fund ("chasing the leader") can result in continual tax exposures and possibly new sales loads. When a switch between funds occurs, the shareholder must recognize any capital gain or loss.

Front 14

According to the Code of Arbitration, which of the following entities may institute arbitration proceedings against a registered representative?

1. Only a customer.
2. Anyone employed outside the securities industry.
3. Anyone employed in the securities industry.
4. Only the registered representative's firm.

A)II and III.

B)I and III.

C)II and IV.

D)I and IV.

Back 14

The correct answer was: II and III.

Anyone may institute arbitration proceedings against a registered representative. In fact, as a condition of registration, the representative agrees to submit to arbitration.

Front 15

Which of the following securities has a dividend expressed either as a fixed percentage of par or as a fixed dollar amount?

A)Corporate bonds.

B)Municipal bonds.

C)Preferred stock.

D)Common stock.

Back 15

The correct answer was: Preferred stock.

Preferred stock pays dividends that are stated either as a percentage of par or as a fixed dollar amount. Municipal bonds and corporate bonds pay interest, not dividends. Common stock does not guarantee dividends and its par value is an arbitrary figure.

Front 16

Which of the following are deducted from the gross premiums of a variable life insurance contract?

1. The administrative fee.
2. The sales load.
3. The mortality risk fee.
4. The expense risk fee.

A)I and IV.

B)III and IV.

C)II and III.

D)I and II.

Back 16

The correct answer was: I and II.

Remember the phrase S-A-S from the premium. Sales load, administrative fee, and state premium taxes are all deducted from the gross premium. The mortality and expense risk fees and the investment management fee are deducted from the separate account.

Front 17

A client and his wife own shares in the ACE Fund as tenants in common. He has a 60% ownership interest in the account and she has the balance. If the client dies, what happens to the shares in the account?

A)Forty percent of the shares would belong to his wife and the remaining balance would be distributed to his estate.

B)Fifty percent of the shares would belong to his wife and the remaining half would be distributed to his estate.

C)His wife would automatically own all the shares.

D)Ownership of the shares would be determined by probate court.

Back 17

The correct answer was: Forty percent of the shares would belong to his wife and the remaining balance would be distributed to his estate.

In a TIC account, securities pass to the deceased owner's estate. Unlike JTWROS, the percentages don’t have to be equal.

Front 18

With regard to social media used for communication, all of the following would result in regulatory sanctions, EXCEPT:

A)Social media communications must be readily accessible for two years but are not required to be retained for three years.

B)A RR uses outside electronic addresses and Twitter among other sources to communicate with clients and provides copies to the firm.

C)A RR uses Facebook to post birthday wishes to clients without notifying his firm.

D)The CEO of a clothing retailer tweets from her private account, "The BOD is happy with our numbers" prior to official numbers being released.

Back 18

The correct answer was: A RR uses outside electronic addresses and Twitter among other sources to communicate with clients and provides copies to the firm.

If the BD allows social media to be used to communicate with clients outside the firms electronic network, it must still supervise, review, and maintain records of the communication. Providing copies of the communication would be acceptable. Social media communications are subject to the same recordkeeping rules as public communications.

Front 19

The rate of return on a money market fund would be most similar to the:

A)prime rate of interest.

B)passbook savings rate.

C)current Treasury bill rate.

D)current 30-year Treasury bond rate.

Back 19

The correct answer was: current Treasury bill rate.

Money market funds are invested in short-term debt instruments, including T-bills; the rate of return on money market funds is similar to the current Treasury bill rate.

Front 20

The KPF Growth and Income Fund experienced $10 million in net investment income last year. Of this, it distributed $8.9 million to its shareholders. On how much of its net investment income must the fund itself pay income tax?

A)It depends on how much of the distributions went to institutional and how much to individual investors.

B)$10 million.

C)$1.1 million.

D)$8.9 million.

Back 20

The correct answer was: $10 million.

If a mutual fund distributes at least 90% of its net investment income to its shareholders, it need pay taxes only on the income it retains. If it distributes less (in this case, it distributed 89%) it must pay income tax on 100% of its net investment income. In either case, the shareholders pay income tax on what they received.

Front 21

If an individual purchases open-end investment company shares without first receiving a prospectus, the registered representative is in violation of the Act of:

A)1933

B)1934

C)1970

D)1940

Back 21

The correct answer was: 1933

Under the 1933 Act, a registered representative must sell primary offerings of nonexempt issues by prospectus. The 1934 Act regulates secondary market trading (mutual fund shares do not trade on the secondary market). Under the 1940 act, the mutual fund issuer must register as an investment company.

Front 22

A registered representative with ABC Securities, a FINRA member broker/dealer, terminates his registration and affiliates with XYZ Securities, another FINRA member broker/dealer. Which of the following statements is CORRECT?

1. The registered representative is permitted to take client files with him to the new firm.
2. It would be prohibited for the registered representative’s clients to change their dealer of record from ABC to XYZ.
3. Continuing commissions on clients remaining with ABC can be paid to the registered representative if it is in the representative’s contract.
4. As long as the new affiliation takes place within two years of the termination, there would not be a requirement to re-qualify by examination.

Back 22

The correct answer was: III and IV.

Continuing commissions may be paid on business that “continues” to accrue at the initial B/D as long as it is in the employee’s contract. There is a two-year limit on re-registering without need to re-take the exam. It would be a prohibited practice to remove files from the office and there is nothing to stop the representative’s clients from changing their B/D of record to the new firm.

Front 23

An investment representative recommended a variable annuity to a client who declined the investment. The same client called a year later and wanted to buy the annuity and invest all of the funds in the aggressive growth portfolio, which had had a remarkable three-year performance streak. The client is one year away from retirement. Which of the following statements are TRUE?

1. The client's profile must be updated to ensure suitability before selling him the variable annuity.
2. Because suitability was established a year ago, there is no need to update the client's information.
3. The aggressive growth portfolio selection is suitable because the client does not need income until he retires in a year.
4. The aggressive growth portfolio is not suitable because the client will retire in a year.

A)I and III.

B)II and III.

C)I and IV.

D)II and IV.

Back 23

The correct answer was: I and IV.

Because of the client's potential retirement needs, the aggressive growth portfolio would not be suitable for a substantial portion of his funds. His profile should be updated before making any recommendation.

Front 24

Which of the following statements regarding variable annuities and index annuities are NOT true?

1. Both index and variable annuities are securities products.
2. Index annuities provide a guaranteed minimum return, whereas variable annuities do not.
3. Index annuities typically have longer surrender periods than variable annuities do.
4. Variable annuities typically have longer surrender periods than index annuities do.

A)II and IV

B)II and III

C)I and IV

D)I and III

Back 24

The correct answer was: I and IV

Variable annuities are classified as securities; index annuities are not. Index annuities have a guaranteed minimum return and longer surrender periods.

Front 25

Diversification helps protect against which of the following types of risk?

1. Nonsystematic
2. Systematic
3. Market
4. Business

A)I and IV

B)II and IV

C)II and III

D)I and III

Back 25

The correct answer was: I and IV

Diversification reduces nonsystematic risk such as business risk, which is associated with the decline of an individual security's value. Systematic risk, such as market risk, affects all securities and therefore is not significantly reduced by diversification.

Front 26

When securities are inherited, the recipient's holding period will be considered:

A)long term.

B)cannot be determined from the information given.

C)short term.

D)intermediate.

Back 26

The correct answer was: long term.

The recipient's holding period is considered long term regardless of the deceased's actual holding period.

Front 27

When the annual report of a mutual fund is used as sales literature, which of the following statements are TRUE?

1. The principal of the firm must approve its use for that purpose.
2. A prospectus need not accompany the report, provided it includes instructions for obtaining a prospectus.
3. The figures contained in the report must be as of a specific date.
4. The report must contain a list of the industries in which the fund invests.

A)I and IV.

B)II and IV.

C)I and III.

D)II and III.

Back 27

The correct answer was: I and III.

Sales literature is going to be defined as a retail communication. The principal of the firm must approve the use of the annual report as sales literature, and the figures contained must be current and complete. A prospectus is always required, as is a complete portfolio list, not merely a list of industries in which the fund invests.

Front 28

ABC Securities Company, a FINRA member broker/dealer, offers a number of mutual funds for sale. ABC is also affiliated with ABC Funds, Inc. The CEO of the broker/dealer announces to all registered personnel that the month of May is going to be “who can sell the most funds” month with a substantial bonus going to the winner. Under FINRA rules:

1. this would not be permitted.
2. this would be permitted as long as no additional incentives were offered for selling certain funds.
3. this would be permitted with the understanding that representatives selling the ABC Funds would earn extra points in the competition for selling the firm’s proprietary product.
4. sales of mutual funds must be based solely on customer suitability, not sales competitions.

A)IV only.

B)II and IV.

C)I and IV.

D)III only.

Back 28

The correct answer was: II and IV.

A broker/dealer is permitted to sponsor an in house sales contest. However, no extra credit can be given for selling certain funds, particularly proprietary ones. As in all cases, customer suitability must be adhered to.

Front 29

A municipal bond has a coupon of 6.25% and at the present time, its yield to maturity is 6.75%. From this information, it can be determined that the municipal bond is trading:

A)at a discount.

B)at par.

C)at a premium.

D)flat.

Back 29

The correct answer was: at a discount.

The YTM is greater than the nominal yield, or coupon yield. Therefore, the bond is trading at a discount.

Front 30

To be in compliance with the Investment Company Act of 1940, every registered investment company must report to shareholders no less frequently than every:

A)16 months.

B)3 months.

C)6 months.

D)12 months.

Back 30

The correct answer was: 6 months.

Investment companies must report to customers on the state of the company at least twice a year with one audited annual report and one unaudited semiannual report.

Front 31

An investor with a long time horizon and $100,000 to invest would most likely be interested in:

A)Class A shares.

B)Class C shares.

C)Class B shares.

D)B shares that convert to A shares.

Back 31

The correct answer was: Class A shares.

Class A shares would be most attractive because of their lower expense ratio and 12b-1 fees, as well as the reduced sales charges to be expected from breakpoints to be expected by the investor's large purchase.

Front 32

All of the following statements concerning Section 529 plans are false EXCEPT

A)if the donor dies, the plan becomes part of his estate

B)there are no income limitations restricting the ability to make contributions

C)the dollar amount of contributions is limited by the IRS

D)when the beneficiary reaches the age of majority, the funds in the account become his property

Back 32

The correct answer was: there are no income limitations restricting the ability to make contributions

Unlike the Coverdell ESA, regardless of your income, anyone can contribute to a 529 and contribution limits are set by the states, not the federal government. Although the donor controls the plan, upon death it is not part of his estate.

Front 33

Which of the following statements regarding sales charges on variable contracts of insurance companies are TRUE?

1. The Conduct Rules call for a maximum sales charge on variable annuities of 8.5% of the purchase payment.
2. The Conduct Rules do not impose a specific maximum on sales charges for variable annuities.
3. Variable life insurance contracts are limited to a maximum sales charge of 9% over the life of the contract.
4. Variable life insurance contracts are limited to a maximum sales charge of 9% over the life of the contract, but not to exceed 20 years.

A)I and III.

B)I and IV.

C)II and IV.

D)II and III.

Back 33

The correct answer was: II and IV.

Variable annuities' sales charges are held only to a standard of reasonableness. The Investment Company Act of 1940 sets the limits for variable life insurance.

Front 34

In general, the Conduct Rules permit selling concessions and discounts:

A)to FINRA member firms engaged in the investment banking or securities business.

B)within certain percentage limits.

C)as consideration for services rendered by nonmembers of FINRA in obtaining business.

D)to anyone who deals in securities transactions.

Back 34

The correct answer was: to FINRA member firms engaged in the investment banking or securities business.

The Conduct Rules permit FINRA member broker/dealers to allow concessions and discounts only to other members.

Front 35

Which of the following describes findings under the Code of Arbitration?

A)May be appealed to the SEC.

B)May be appealed to the National Adjudicatory Council.

C)Binding on members, but not on customers.

D)Binding on all parties involved in a dispute.

Back 35

The correct answer was: Binding on all parties involved in a dispute.

Members and associated persons must submit disputes to arbitration. Customers are subject to arbitration only if they agree to submit to arbitration. Findings under the Code of Arbitration are considered binding on all parties involved, with no right of appeal.

Front 36

Which of the following would be considered excessive transactions?

1. A customer orders 100 shares. The representative places an order for him for 200 shares.
2. A representative places a customer's securities into the firm's investment account.
3. A customer orders 5,000 shares of an over-the-counter stock. The representative orders 100 shares for himself before placing the customer's order.
4. A representative buys and sells the same security for a customer three times during a single day.

A)II and III.

B)I and II.

C)I and IV.

D)III and IV.

Back 36

The correct answer was: I and IV.

Ordering more shares than the customer wants may increase a commission but is an excessive transaction. The same applies to churning -that is, futile trades designed only to generate commissions. Commingling and front-running are prohibited practices, but are not excessive transactions.

Front 37

An important basic characteristic of common stocks that makes them a suitable type of investment for the separate account of variable annuities is:

A)the yield is always higher than mortgage yields.

B)changes in common stock prices tend to be more closely related to changes in the cost of living than changes in bond prices.

C)the safety of the principal invested.

D)the yield is always higher than bond yields.

Back 37

The correct answer was: changes in common stock prices tend to be more closely related to changes in the cost of living than changes in bond prices.

Because common stocks are not fixed dollar investments, they have the opportunity to keep pace with inflation.

Front 38

A high-net-worth client is expanding his business and is looking for investors willing to commit a minimum of $100,000 each. Another client just had a large CD mature and is unhappy with the renewal rates offered. He is looking for something with substantially greater opportunity for return. For a fee of $100 each, you introduce the two and a sale is made. Under the Conduct Rules you are:

A)not in violation of selling away because any gift not in excess of $100 per person per year is within FINRA limits.

B)not in violation of selling away because all you did was mention the needs of the first customer.

C)in violation of selling away because you did not notify your firm in writing before putting the two clients together.

D)in violation of selling away because you did not obtain your firm's permission in writing before putting the two clients together.

Back 38

The correct answer was: in violation of selling away because you did not obtain your firm's permission in writing before putting the two clients together.

Any registered individual must notify the member firm in writing before engaging in any activity outside of the firm that is related to the sale of securities. If compensation was received, regardless of the amount, the firm must give its permission in writing and agree to handle the transaction on its books as it would any trade run through the firm.

Front 39

Which of the following occurrences will result in the issuance of a Form 1099?

1. A stock dividend
2. A stock split
3. Dividends reinvested into a mutual fund
4. Capital gains reinvested into a mutual fund

A)III and IV

B)I and IV

C)II and III

D)I and II

Back 39

The correct answer was: III and IV

Distributions from mutual funds are taxable events (whether reinvested or not) and are reported on IRS Form 1099.

Front 40

The Securities Exchange Act of 1934 regulates or mandates each of the following EXCEPT:

A)extension of credit to customers.

B)creation of the SEC.

C)manipulation of the secondary market.

D)full and fair disclosure on new offerings.

Back 40

The correct answer was: full and fair disclosure on new offerings.

The Securities Exchange Act of 1934 created the SEC and regulates the secondary market. The Securities Exchange Act of 1934 does not address full and fair disclosure issues; the Securities Act of 1933 addresses such issues.

Front 41

Which of the following provides the right to buy a corporation's stock for the longest period of time?

A)Warrant.

B)Preemptive right.

C)Long put.

D)Long call.

Back 41

The correct answer was: Warrant.

A warrant provides an investor a long-term right to buy an issuer's stock at a fixed price. The expiration period of a warrant is generally two to ten years. Calls have a nine-month maturity at issue, and rights have a 4 to 6 week lifetime.

Front 42

Which of the following are features of Class C mutual fund shares?

1. Typically charge no front-end load.
2. Typically charge a front-end load.
3. Typically impose lower CDSCs than Class B shares for a shorter period.
4. Typically convert to Class A shares after they are held for a defined period of time.

A)II and IV.

B)I and III.

C)I and IV.

D)II and III.

Back 42

The correct answer was: I and III.

Class C shares generally have the following features: no front-end sales charge, lower CDSCs than Class B shares for a shorter period of time, and no conversion to Class A shares regardless of how long they are held. Because of these features, Class C shares may be less expensive for investors with shorter investment horizons. They may be more expensive for investors who plan to hold their shares for a long time, since the level load never discontinues.

Front 43

All of the following statements regarding Treasury STRIPs are true EXCEPT:

A)the rate of return is locked in.

B)the interest is realized at maturity.

C)there are no semiannual interest payments.

D)the interest is taxed as a capital gain.

Back 43

The correct answer was: the interest is taxed as a capital gain.

The interest on the bond is paid at maturity but it is taxed as interest income over the life of the bond, not as a capital gain.

Front 44

Which of the following is the safest from default risk?

A)High-yield bond

B)Industrial Development Revenue bond

C)AA secured bond

D)AAA unsecured bond

Back 44

The correct answer was: AAA unsecured bond

The more As the better! AAA-rated bonds are safer than AA-rated bonds, whether secured or not. High-yield bonds are very susceptible to default and although the IDR bond is a type of municipal bond, it is backed by the creditworthiness of a corporation, not the municipality.

Front 45

A retired man has $100,000 to invest for growth. He also owes a $10,000 note due in 6 months, a $20,000 note due in one year and a $25,000 note due in two years. How much of the $100,000 should he allocate to growth investments?

A)$70,000.

B)$65,000.

C)$100,000.

D)$45,000.

Back 45

The correct answer was: $45,000.

The man will pay a total of $55,000 over two years. This period is too short to invest in stocks for growth. The man can invest the remaining $45,000 because he will not need it to pay the notes.

Front 46

A first year broker/dealer posts an ad in the newspaper to recruit series 6 registered representatives on May 5, 2010 and again on August 14, 2010. How long must the broker/dealer maintain records of this?

A)Three years from August 14, 2010

B)Three years from May 5, 2010

C)Three years from the date the advertisement was filed with FINRA

D)Until December 31, 2013

Back 46

The correct answer was: Three years from August 14, 2010

An advertisement is a form of retail communication. A separate file containing all retail communications and independently prepared reprints (IPRs), including the names of the persons preparing and approving their use, must be maintained starting from the date of first use and kept until three years after last use.