Series 6 Exam Questions and
Answers 100% Pass
When must RRs complete the Regulatory Element of Continuing Education? -
CORRECT ANSWER-On the 2-year anniversary of their registration and every 3
years thereafter.
True or False: Firm Element Continuing Education requires BDs to update
employees on job and product-related subjects. - CORRECT ANSWER-True
To apply for a securities license, one must file Form _____ with FINRA. -
CORRECT ANSWER-U4
What three items must be specified on a not held order - CORRECT ANSWER-
Action (buy/sell), Amount (quantity), and Asset (security)
For how long may a not held order be maintained? - CORRECT ANSWER-A not
held order will be considered a day order.
The Trust Indenture Act of 1939 regulates ________________ offerings. -
CORRECT ANSWER-The Trust Indenture Act of 1939 regulates corporate bond
offerings (NOT municipal or government offerings).
,Though subject to federal tax, interest on Treasuries is exempt from ________
and ________ tax. - CORRECT ANSWER-state and local tax.
True or False: Interest paid on GNMA, FNMA, FHLMC, and SLMA agency
bonds is fully taxable to investors. - CORRECT ANSWER-True. The interest is
taxed at the federal, state, and local level.
The Securities Act of 1933 regulates _____________. - CORRECT ANSWER-
new issues.
What is the primary purpose of the Securities Act of 1933? - CORRECT
ANSWER-Provide investors with full and fair disclosure regarding new issues
(prospectus)
True or False: The SEC judges an offering's investment merit and provides
approval. - CORRECT ANSWER-False
List the securities that are exempt from registration. - CORRECT ANSWER-
Government/municipal bonds, commercial paper, bankers' acceptances, bank
issues, non-profit and small business issues
Though some securities are exempt from registration, nothing is exempt from the
____________ provisions of the Act. - CORRECT ANSWER-anti-fraud
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,____ is the maximum number of non-accredited investors allowed in a Private
Placement. - CORRECT ANSWER-35 is the maximum number of non-accredited
investors allowed in a Private Placement.
May a preliminary prospectus (red herring) be sent during the cooling-off period? -
CORRECT ANSWER-Yes, so potential purchasers can provide indications of
interest.
Indications of interest are _______________ on both the customer and BD. -
CORRECT ANSWER-non-binding
What should an RR do if a client sends a check to purchase securities going
through the cooling-off period? - CORRECT ANSWER-Return the check to the
customer
True or False: If a registration statement has not been filed with the SEC, BDs
may not discuss new issue information. - CORRECT ANSWER-True
The ____________________ will not appear in a red herring. - CORRECT
ANSWER-final offering price
What rules govern the registration of an issue in any state in which it will be
offered? - CORRECT ANSWER-Blue-Sky Laws
True or False: Blue-Sky Laws apply to broker-dealers and agents operating within a
state. - CORRECT ANSWER-true
, In a firm commitment underwriting, unsold securities are retained by
________________. - CORRECT ANSWER-the syndicate.
In a best-efforts underwriting, unsold securities are retained by ______________.
- CORRECT ANSWER-the issuer
What type of underwriting is cancelled if the entire issue is not sold? - CORRECT
ANSWER-All-or-None
What type of underwriting is cancelled if a specified portion is not sold? -
CORRECT ANSWER-Mini-max
A ___________ underwriting is used for shares not purchased through a rights
offering. - CORRECT ANSWER-Stand-by
____________ is the only form of price manipulation allowed by the SEC. -
CORRECT ANSWER-Stabilization
True or False: Stabilization is designed to artificially raise the price of a new issue. -
CORRECT ANSWER-False. Stabilization is designed to support or keep a new
issue's price from falling.
The highest price at which a stabilizing bid may be placed is the
________________________. - CORRECT ANSWER-public offering price
(POP).
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED
Answers 100% Pass
When must RRs complete the Regulatory Element of Continuing Education? -
CORRECT ANSWER-On the 2-year anniversary of their registration and every 3
years thereafter.
True or False: Firm Element Continuing Education requires BDs to update
employees on job and product-related subjects. - CORRECT ANSWER-True
To apply for a securities license, one must file Form _____ with FINRA. -
CORRECT ANSWER-U4
What three items must be specified on a not held order - CORRECT ANSWER-
Action (buy/sell), Amount (quantity), and Asset (security)
For how long may a not held order be maintained? - CORRECT ANSWER-A not
held order will be considered a day order.
The Trust Indenture Act of 1939 regulates ________________ offerings. -
CORRECT ANSWER-The Trust Indenture Act of 1939 regulates corporate bond
offerings (NOT municipal or government offerings).
,Though subject to federal tax, interest on Treasuries is exempt from ________
and ________ tax. - CORRECT ANSWER-state and local tax.
True or False: Interest paid on GNMA, FNMA, FHLMC, and SLMA agency
bonds is fully taxable to investors. - CORRECT ANSWER-True. The interest is
taxed at the federal, state, and local level.
The Securities Act of 1933 regulates _____________. - CORRECT ANSWER-
new issues.
What is the primary purpose of the Securities Act of 1933? - CORRECT
ANSWER-Provide investors with full and fair disclosure regarding new issues
(prospectus)
True or False: The SEC judges an offering's investment merit and provides
approval. - CORRECT ANSWER-False
List the securities that are exempt from registration. - CORRECT ANSWER-
Government/municipal bonds, commercial paper, bankers' acceptances, bank
issues, non-profit and small business issues
Though some securities are exempt from registration, nothing is exempt from the
____________ provisions of the Act. - CORRECT ANSWER-anti-fraud
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED
,____ is the maximum number of non-accredited investors allowed in a Private
Placement. - CORRECT ANSWER-35 is the maximum number of non-accredited
investors allowed in a Private Placement.
May a preliminary prospectus (red herring) be sent during the cooling-off period? -
CORRECT ANSWER-Yes, so potential purchasers can provide indications of
interest.
Indications of interest are _______________ on both the customer and BD. -
CORRECT ANSWER-non-binding
What should an RR do if a client sends a check to purchase securities going
through the cooling-off period? - CORRECT ANSWER-Return the check to the
customer
True or False: If a registration statement has not been filed with the SEC, BDs
may not discuss new issue information. - CORRECT ANSWER-True
The ____________________ will not appear in a red herring. - CORRECT
ANSWER-final offering price
What rules govern the registration of an issue in any state in which it will be
offered? - CORRECT ANSWER-Blue-Sky Laws
True or False: Blue-Sky Laws apply to broker-dealers and agents operating within a
state. - CORRECT ANSWER-true
, In a firm commitment underwriting, unsold securities are retained by
________________. - CORRECT ANSWER-the syndicate.
In a best-efforts underwriting, unsold securities are retained by ______________.
- CORRECT ANSWER-the issuer
What type of underwriting is cancelled if the entire issue is not sold? - CORRECT
ANSWER-All-or-None
What type of underwriting is cancelled if a specified portion is not sold? -
CORRECT ANSWER-Mini-max
A ___________ underwriting is used for shares not purchased through a rights
offering. - CORRECT ANSWER-Stand-by
____________ is the only form of price manipulation allowed by the SEC. -
CORRECT ANSWER-Stabilization
True or False: Stabilization is designed to artificially raise the price of a new issue. -
CORRECT ANSWER-False. Stabilization is designed to support or keep a new
issue's price from falling.
The highest price at which a stabilizing bid may be placed is the
________________________. - CORRECT ANSWER-public offering price
(POP).
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED
