Series 6 Facts

Front 1

Most managers are prohibited from using these types of trading strategies:
Selling stock short,
Selling Naked Options and Buying on Margin Due To Their Risk.

Back 1

Coverd writing is an income producing strategy that investors may engage in.

Front 2

529 Plan distributions are tax free if used for education purposes.

Back 2

If 529 Plans are not distributed for education, its taxed at a ordinary income and a 10% fee.

Front 3

Total Assets/ Total Units Issued

Back 3

NAV of an accumulation unit of a variable annuity.

Front 4

RRs are prohibited from accepting off the book compensation from a wholesaler.

Back 4

Any compensation made to a broker must be disclosed in the prospectus.

Front 5

A governement security money market fund

Back 5

Capial preservation
Interest Rate Risk not associated as they are short term.

Front 6

Maximum sales charge for an investment company.

Back 6

8.5%

Front 7

Keogh Plan Contributors May Be:

Back 7

Self-employed people and those with self employed compensation.

Front 8

Life With Period Certain, Straight Life, Joint and Last Survivor All Describe

Back 8

Variable Annuity Payout Options.

Front 9

529 Contributions Are

Back 9

Gifts, However they are NOT deductable

Front 10

Front End Load Plans Have A __. Which allows which type of refund.

Back 10

45 Day Right of Recession, All Sales Charges Refunded and you will get current NAV.

Front 11

Records of advertising and sales literature must be kept for _ Years.

Back 11

3

Front 12

Straight Life Payout Option

Back 12

No concerns regarding continous payments to spouses and will receive the largest payout.

Front 13

IRAs may not include

Back 13

Life Insurance

Front 14

IPO with a continous issuance and redemption of shares describes

Back 14

Open End Fund

Front 15

Equity transactions and second market closed end shares are:

Back 15

Prohibited from Ser

Front 16

Discretionary Authority must be in ______. Asset, Amount and Action may be ______.

Back 16

Written
Verbal

Front 17

New account forms must be signed by

Back 17

Introducing registered representative and manager/principal.

Front 18

To stimulate economic growth the Federal Reserve would:

Back 18

Lower interest rates making money more accessible and enter repurchase agreements to increase money into the economy.

Front 19

Mutual fund additional information must be sent:

Back 19

At customers request

Front 20

___ percent of board memebers must be unaffiliated/disinterested to prevent any conflict of interests.

Back 20

75

Front 21

You may not execute these transactions with a a Series 6

Back 21

Liquidate shares on a closed end fund.

Purchase common stock shares.

Front 22

A customers request longer than a day must be discretionary, which is:

Back 22

Signed, Written Instructions

Front 23

Does a management company distribute gains and losses?

Back 23

No, however IRS has rules that

Front 24

Fixed Annuity contributions are in a ___ ___.

Variable Annuity contributions are in a ___ ___.

Back 24

General Account

Seperate Account

Front 25

In a joint account, how are the taxes reported?

Back 25

One social

Front 26

National Adjudicatory Council

Back 26

Listens to appeals of FINRA findings.

Front 27

A customer requestions redemption in a mutual fund must recieve payment:

Back 27

Within 7 calendar days.

Front 28

How to determing the liquidation of open ended shares.

Back 28

NAV multiplied by number of shares, minus any redemption fees.

Front 29

Countercyclical

Back 29

A type of stock that does better in bad economic conditions.

Front 30

Variable life insurance allows customers to borrow

Back 30

A portion of their cash value of their policy.

Front 31

This form must be filled out, if not, you may be subject to backup withholding.

Back 31

W-9

Front 32

Red Herring

Back 32

Provides potential buyers with any material information regarding the offering.

Front 33

Safe harbor, IRA nest egg

Back 33

US governement securities fund

Front 34

Common stock holders vote on:

Back 34

Board Members
Stock Splits

Front 35

Dollar cost averaging

Back 35

Purchase of a fixed dollar amount on a regular schedule

Front 36

Mutual Fund Underwriter

Back 36

Sells shares to the public

Front 37

Taxpayers with non working spouses may contribute a total of ____, under what conditions?

Back 37

10,000
No more than 5000 is placed in one IRA

Front 38

12b-1 Fees

Back 38

Used to offset distribution expenses and are assesed against the assets of the funds.

Front 39

Seperate Accounts

Back 39

Have a wider range of securites which may include more risky investments

Front 40

Broker Dealer Ad Must Include

Back 40

Not FDIC insured
Deposits are not obligations or guaranteed by the financial institution
Subject to investment risk and may lose value.

Front 41

May 45 Call Option on Zap Electronics at 2.

What is the cost?

Back 41

200

2 x 100

Front 42

Maximum amount an open ended fund may borrow from a bank?

Back 42

33%

Front 43

Ratio of cash on hand to overall deposits by which a bank must abide

Back 43

Reserve requirement

Front 44

Variable life policies may be converted

Back 44

Into whole life policies if done within two years of purchasing the VLI policy.

Front 45

Refund provisions of spread load plans

Back 45

45 day right of recession
Refund of all sales charges within 45 days, refund of the current market value after 45 days.

Front 46

Do Mutual Funds have options?

Back 46

NO

Front 47

Current Yield

Back 47

Measure of return that takes the bonds coupon and price paid into account

Front 48

Only funds able to be purchased on margin

Back 48

Closed end funds

Front 49

Ex-dividend date for a mutal fund

Back 49

The next business day after the record date

Front 50

IRA early withdrawl penalty

Back 50

10%

Front 51

Do Mutual Funds have options?

Back 51

NO

Front 52

Current Yield

Back 52

Measure of return that takes the bonds coupon and price paid into account

Front 53

Only funds able to be purchased on margin

Back 53

Closed end funds

Front 54

Ex-dividend date for a mutal fund

Back 54

The next business day after the record date

Front 55

IRA early withdrawl penalty

Back 55

10%

Front 56

Precious Metal

Back 56

Hedge against inflation

Front 57

Contractual Plans

Back 57

provide small investors the oppertuinty to invest and have a disciplined, forced savings plan

Front 58

Maximum dollar amount handled through simple arbitration

Back 58

100,000

Front 59

Tenants in Common

Back 59

Maybe 50/50 or unequal
Any owner may act for the entire account
When one owner dies, his portion goes to his estate

Front 60

Cash dividends from a corporation are taxed

Back 60

at a preferential rate