Ethics and Professional Conduct
Know Your Customer (KYC) Rule: Requires firms to collect and maintain accurate client information. Suitability Standard vs. Fiduciary Standard: Brokers must ensure investments are suitable, whereas fiduciaries
series 6 dump sheet must act in the client’s best interest. Insider Trading Regulations: Illegal trading based on non-public information.
Common Series 6 Exam Questions
Here are some sample questions to test your knowledge:
1. What act regulates mutual funds and variable annuities? A) Securities Exchange Act of 1934 B) Investment Company Act of 1940 C) Securities Act of 1933 D) FINRA Rule 2111 Answer: B) Investment Company Act of 1940
2. Which of the following is considered a tax-advantaged account? A) Checking Account B) 401(k) Plan C) Money Market Fund D) Savings Account Answer: B) 401(k) Plan
3. What does the suitability rule (FINRA Rule 2111) require brokers to do? A) Act in the best interest of the client at all times B) Recommend investments based on the client’s profile C) Provide free financial advice to all customers D) Disclose all commissions and fees Answer: B) Recommend investments based on the client’s profile
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