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Series-6 – Investment Company and Variable Contracts Products Representative Qualification Examination (IR)

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Showing 4–6 of 15 questions

Question 4

Which of the following statements about the over-the-counter market is true?

Select an option, then click Submit answer.

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    Only penny stocks are traded in the over-the-counter market.
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    Trades in the over-the-counter market are conducted via the auction process.
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    Only bonds and other debt instruments are traded in the over-the-counter market.
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    Stocks that are listed on exchange floors are also traded in the over-the-counter market.
Question 5

Your client is trying to choose between a variable annuity and a fixed annuity. You can tell him that:

I. the fixed annuity will make guaranteed monthly payments, but has more purchasing power risk than a variable annuity.

II. he can expect higher monthly payments from his fixed annuity during a bear market than he would get from a variable annuity.

III. the earnings on both variable and fixed annuities grow tax-deferred.

Select an option, then click Submit answer.

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    I only
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    I and II only
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    I and III only
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    I, II, and III
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    the fixed annuity will make guaranteed monthly payments, but has more purchasing power risk than a variable annuity.
    II. he can expect higher monthly payments from his fixed annuity during a bear market than he would get from a variable annuity.
    III. the earnings on both variable and fixed annuities grow tax-deferred.
Question 6

On which of the following items do mutual fund shareholders get to vote?

I. any change in the investment objective of the fund

II. the election of a new investment adviser

III. the renewal of the fund’s 12b-1 fee

IV. the purchase or sale of real estate by the fund

Select an option, then click Submit answer.

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    I, II, III, and IV
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    I, II, and IV only
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    I, II, and III only
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    I, III, and IV only
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    any change in the investment objective of the fund
    II. the election of a new investment adviser
    III. the renewal of the fund’s 12b-1 fee
    IV. the purchase or sale of real estate by the fund