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

Series6 Exam Questions
  • Exam Code: Series6
  • Exam Name: Investment Company and Variable Contracts Products Representative Examination (IR)
  • Updated: Sep 11, 2026
  • Q & A: 325 Questions and Answers
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FINRA Series6 Exam Syllabus Topics:

SectionWeightObjectives
Obtains and Verifies Customers’ Purchase and Sales Instructions; Processes, Completes and Confirms Transactions10%- Payment and settlement processes
- Order entry and processing procedures
- Error resolution and correction procedures
- Trade confirmations and account statements
Provides Customers with Information About Investments, Makes Recommendations, Transfers Assets and Maintains Appropriate Records50%- Variable contracts: variable annuities, variable life insurance
- Suitability rules and recommendations
- Product features, risks, costs, and tax considerations
- Retirement plans and 529 savings plans
- Investment company products: mutual funds, UITs, closed-end funds
- Recordkeeping and disclosure requirements
Seeks Business for the Broker-dealer from Customers and Potential Customers24%- Telemarketing and solicitation rules
- Prospecting and identifying customer needs
- Communications with the public and regulatory rules
- Advertising and sales literature regulations
Opens Accounts After Obtaining and Evaluating Customers’ Financial Profile and Investment Objectives16%- Financial profile and investment objectives assessment
- Anti-money laundering (AML) and compliance
- Customer identification and verification
- Account types and registration

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

Question #1

The primary difference between dealers and brokers is that:

  • A. dealers operate exclusively in the primary market whereas brokers operate only in the secondary
    market.
  • B. dealers operate only in the bond market, while brokers conduct trades in stocks, bonds and options.
  • C. Both Choices B and C describe differences between dealers and brokers.
  • D. dealers are market makers, who buy and sell out of their own inventory of securities, while brokers are
    matchmakers, who match buyers with sellers.
Answer: D

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Question #2

Which of the following is not an advantage that an exchange traded fund (ETF) has over a traditional
mutual fund?

  • A. All of the above are advantages that an ETF has over a traditional mutual fund.
  • B. Investors can use limit and stop orders when trading ETFs.
  • C. There are no fees (i.e., loads, commissions) associated with buying and selling ETFs.
  • D. ETFs trade continuously throughout the day.
Answer: C

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Question #3

Tex Payor bought 1,500 shares of the Bonds4U Mutual Fund, a no load fund, on June 12th for $28 a
share and sold the shares the following year on June 11th for $40 a share. This will result in which of the
following tax consequences for Tex?

  • A. Tex will have to pay tax on $40,000, taxed as ordinary income at his marginal tax rate.
  • B. Tex will have to pay tax on $18,000, taxed as ordinary income at his marginal tax rate.
  • C. Tex will have to pay tax on $18,000 of capital gain income, taxed at the preferential rate for long-term
    capital gains.
  • D. Tex will have to pay tax on $40,000 of capital gain income, taxed at the preferential rate for long-term
    capital gains.
Answer: B

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Question #4

Which of the following is an example of a primary market transaction?

  • A. Mr. Safe purchases a Treasury bill with two weeks remaining to maturity.
  • B. Ms. Talker calls her broker and places a market order to sell shares of AT&T (T) on the NYSE.
  • C. Mr. Green places an order to buy shares of Sunvalley Solar, Inc. (SSOL), a stock selling on the OTC
    Bulletin Board.
  • D. Exco Resources (XCO) sells a new issue of 7.5%, 8-year notes.
Answer: D

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Question #5

Ms. Newbie, a newly-minted registered representative with Savvy Investments, just had her first client
walk through the door. Before she can do anything, Ms. Newbie must obtain which of the following pieces
of information from her client?

  • A. age
  • B. investment objectives
  • C. taxpayer identification number (TIN)
  • D. occupation
Answer: A

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