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Exam Code: Series6
Exam Name: Investment Company and Variable Contracts Products Representative Examination (IR)
Updated: Jun 21, 2026
Q & A: 325 Questions and Answers
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1. Under the Investment Company Act of 1940, an investment company must:
A) have a board of directors composed of no more than 50% who are "interested persons."
B) maintain a minimum net worth of $5 million.
C) provide a prospective investor with a copy of its registration statement when offering shares for sale.
D) include a statement of its investment policy in its prospectus.
2. NASDAQ market makers provide investors with assurance that:
A) there is a market for the listed security.
B) the investor will be investing in a high quality investment with relatively low risk.
C) NASDAQ market makers provide investors with no assurance whatsoever. It is "buyer beware."
D) the investor will be able to buy or sell the security at a price he desires.
3. In 2004, your Uncle Oscar purchased 300 shares of Hasbro, Inc. for $19 a share. Uncle Oscar died earlier
year and left his Hasbro stock to you. The stock was selling for $44 on the day he died, but by the time
you learned that you were the beneficiary of the stock, the price was $47. A month later, you notice that
the stock is selling for $55 and decide to sell it. What is the tax consequence of this sale to you?
A) $3,300, taxed as long-term capital gain income
B) $10,800, taxed as long-term capital gain income
C) None of the above is the correct tax consequence of this sale.
D) $2,400 taxed as short-term capital gain income
4. 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:
A) Mrs. Newbie-Oldman may only share in the account to the extent that she deposits funds in the
account.
B) Mrs. Newbie-Oldman's husband must provide written authorization to Savvy Investments for his new
bride to be included on the account.
C) Mrs. Newbie-Oldman must obtain written authorization from Savvy Investments to put her name on the
account.
D) Both B and C are true statements.
5. Which of the following is not a potential advantage associated with investing through a mutual fund?
A) price discovery
B) diversification
C) lower cost associated with portfolio management
D) simplified recordkeeping
Solutions:
| Question # 1 Answer: D | Question # 2 Answer: A | Question # 3 Answer: A | Question # 4 Answer: D | Question # 5 Answer: A |
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