Questions for the SERIES-6 were updated on : Nov 21 ,2025
Anna Vestor placed an order to sell 100 shares of Microsoft through the on-line site of her broker,
GetErDone Broker-Dealers. GetErDone sold her shares for $24.59 a share and charged her a
commission of $8.95. Among other things, the trade confirmation that Anna receives must stipulate:
I. the time and date of the transaction.
II. that GetErDone served as a principal in the transaction.
III. the number of shares sold and the price at which they were sold.
IV. the exchange or ECN on which the transaction was executed.
A
Explanation:
Among other things, the trade confirmation that Anna receives must stipulate the items described in
Selections I and III only. The trade confirmation that Anna receives from GetErDone must stipulate
the time and date of the transaction, the number of shares sold, and the price at which they were
sold. The exchange or ECN on which the transaction was executed is not provided on the
confirmation statement. Whether GetErDone acted as a principal or a broker in the transaction does
need to be stipulated, but in this instance GetErDone acted as a broker, not a principal. GetErDone
did not itself buy the shares from Anna.
Mr. Shortfall placed a market order to buy 100 shares of Google (GOOG) with GetErDone Broker-
Dealers. The market order was executed at $530 a share. In accordance with Regulation T:
D
Explanation:
After his market order to buy shares of GOOG is executed, Mr. Shortfall must pay for the shares
within 5 business days. If he is unable to do so within this time period, GetErDone can request an
extension from FINRA or another SRO for him.
Ari Gaunt was affiliated with Savvy Investments and was terminated after some of the female
representatives associated with Savvy filed sexual harassment complaints against him. Mr. Gaunt
believes that he is still due money for some transactions he executed prior to his termination; Savvy
believes otherwise. Under FINRA’s Code of Arbitration:
C
Explanation:
If Mr. Gaunt believes he is still due money from Savvy, and Savvy disagrees, Ari has six years to
submit his claim to arbitration under FINRA’s Code of Arbitration. Ari cannot sue Savvy in a court of
law, and the decision of the arbitration panel is final.
Upon receiving a complaint about one of its member firms, FINRA may:
I. require any person associated with the member firm to provide information to FINRA and to testify
under oath.
II. inspect and copy the books, records and accounts of the member firm.
III. share information obtained from its investigation of a member firm with a foreign regulatory
agency.
D
Explanation:
Upon receiving a complaint about one of its member firms, FINRA may require any person associated
with the member firm to provide information and to testify under oath; it may inspect and copy the
books, records, and accounts of the member firm; and it may share information obtained from its
investigation of a member firm with a foreign regulatory agency. The foreign regulator must agree to
treat the information confidentiality, and the agreement with the foreign regulator is predicated on
two requirements: “(A) the other regulator party to the agreement must have jurisdiction over
common regulatory matters; and (B) the agreement must require the other regulator to reciprocate
and share with FINRA information of regulatory interest or concern to FINRA.”
Chandler is a registered representative with GetErDone Broker-Dealers, a FINRA member-firm. His
friend, Phoebe, is employed by FlyByNight Investments, which is not a member of FINRA, or any
other securities association for that matter. Given these facts:
D
Explanation:
Given that Chandler is a representative with a member firm while Phoebe’s employer is not a
member of any known securities association, he is required to charge Phoebe the same commission
that he charges any member of the general public when executing a transaction for her and is
prohibited from splitting commissions with her. He is not prohibited from engaging in any financial
transactions with her; he simply must do so “for the same commissions or fees, and on the same
terms and conditions as are. . .accorded to the general public,” according to FINRA.
You have just become a licensed registered representative with Fine, Howard, Fine and Associates, a
broker-dealer. (Congratulations!) You have had a brokerage account with Anon Brokerage for the past
ten years. In this instance, you are required to:
D
Explanation:
If you have an account with another member firm upon becoming associated with a member firm,
you are required to provide both the firm with which you have your account and your new employer
in writing of the fact.
Matt is a registered representative with Fine, Howard, Fine and Associates. Tom, an old fraternity
brother, is one of his clients. Business has been bad, and Matt is going to have difficulties making this
month’s mortgage payment. Tom was commiserating with him when the two hooked up to have a
couple of beers together and offered to lend Matt some money to see him through the rough times.
Based on these facts:
B
Explanation:
Since Tom and Matt are old fraternity brothers, Matt may accept Tom’s offer, but only after obtaining
pre-approval from Fine, Howard, Fine. FINRA’s Rule 3240 allows for borrowing and lending between
a registered representative and a client if “the lending arrangement is based on a personal
relationship with the customer, such that the loan would not have been solicited, offered, or given
had the customer and the associated person not maintained a relationship outside of the
broker/customer relationship.”
Ms. Newbie is a registered representative with Savvy Investments and has recently gotten married.
(Her new name is Mrs. Newbie-Oldman.)Her husband has been a client of hers, and the couple now
wants to put her name on the account. In this case:
D
Explanation:
If Mrs. Newbie-Oldman and her new husband want her name on what was previously his account,
she must obtain written authorization from her employer, Savvy Investments, and her new husband
must provide his written authorization to Savvy. She is exempted from the proportional investment
requirement as Mr. Oldman’s spouse, but not from the written authorization requirements under
FINRA Rule 2150.
Joan is a customer of GetErDone Broker-Dealers. Her twin sister, Jean, has accompanied her to
GetErDone’s office and has gathered some information regarding opening an account with the firm,
giving it her contact information at the same time.
Under Regulation S-P, which of the following statements regarding GetErDone’s handling of Joan’s
and Jean’s personal information is true?
A
Explanation:
Since Joan is a customer of GetErDone, GetErDone must provide her with a notification of its privacy
policies annually and provide her with information on how to mandate that it not share her
nonpublic personal information with nonaffiliated third parties. GetErDone may not disclose any
information about Jean, who is not yet a customer of the firm, unless the broker -dealer has provided
Jean with its privacy policy and given her the opportunity to opt out of its ability to share her
information with nonaffiliated third parties. GetErDone is not required to have provided Jean with a
copy of its privacy policy when she inquired about opening an account, but it will need to provide her
with one when/if she becomes a customer.
A broker-dealer is required to file a Currency Transaction Report with the Treasury Department for:
B
Explanation:
A broker dealer is required to file a Currency Transaction Report with the Treasury Department for
any cash transaction exceeding $10,000. The report does not need to be filed if the transaction
simply has a market value of $10,000, but does not involve cash (aka, currency.)
The Bank Secrecy Act (BSA) requires any financial institution to:
I. file a suspicious activity report (SAR) when a possible violation of a law is suspected.
II. inform its customer that it is filing the SAR.
III. provide any customer that is suspected of engaging in an illegal transaction the opportunity to
explain himself prior to filing an SAR.
IV. obtain specified information on any party sending or receiving a wire transfer of $3,000 or more.
C
Explanation:
Only Selections I and IV are accurate statements. The BSA requires any financial institution to file a
suspicious activity report when a possible violation of the law is suspected, and it also requires that
specified information on any party sending or receiving a wire transfer of $3,000 or more be
obtained and kept. The customer remains uninformed.
Which of the following persons is not permitted to open an investment account?
I. a general partnership
II. a corporation
III. the executor of an estate
IV. a 16-year-old entrepreneur
D
Explanation:
Only the 16-year-old entrepreneur is not permitted to open an investment account. As a minor, he is
not a legal person. All the other selections are legal persons and can establish investment accounts.
Which of the following statements regarding both a Uniform Gifts to Minors account (UGMA) and a
Uniform Transfers to Minors account (UTMA) is false?
D
Explanation:
The false statement regarding both a UGMA and a UTMA is that the assets must be re-registered in
the minor child’s name when the child turns 18. The rule differs between the two types of accounts.
The UGMA requires that the assets must be re-registered when the child reaches the “age of
majority,” as defined by the state, and the definition differs among states. Under the UTMA, the
transfer of the account can be delayed until the minor child has reached the age of 25.
Eddie and Edith open a JTWROS account with you. This means that:
I. You can accept a buy or sell order from either Eddie or Edith.
II. Any check that is drafted upon a request to withdraw funds can be written to either Eddie or Edith,
or both.
III. If either Eddie or Edith die, the account assets will pass to that individual’s estate, based on his or
her percentage ownership of the account.
IV. Correspondence concerning the account can be sent to either Eddie or Edith.
C
Explanation:
Only Selections I and IV are true statements. If Eddie and Edith open a JTWROS account with you, you
can accept a buy or sell order from either one of them, and any correspondence concerning the
account can be sent to either one of them. However, a check must be made out to both of them, in
the same manner that the account is titled. A JTWROS account is a “joint tenants with rights of
survivorship” account, which means that if either Eddie or Edith die, the account assets pass directly
to the other one and do not go into the deceased’s estate.
Ms. Newbie’s client, Mr. Nomad, has decided that he wants to go on an extended backpack trip
through the Amazon. Since he’ll be out of touch, he has given a friend of his limited power attorney
to act on his behalf. Based on this, Mr. Nomad’s friend can:
I. present Ms. Newbie with an order to purchase securities on Mr. Nomad’s behalf.
II. present Ms. Newbie with an order to sell securities on Mr. Nomad’s behalf.
III. request a check be issued to him so that he can send Mr. Nomad some money.
B
Explanation:
Mr. Nomad’s friend can engage in the activities described in Selections I and II only. A limited power
of attorney gives Mr. Nomad’s friend the authority to buy and sell securities on Mr. Nomad’s behalf,
but not to make any cash withdrawals. He would need a full power of attorney to be able to do so.