Finra Exam Series-6 Topic 2 Question 75 Discussion

Actual exam question for Finra's Series-6 exam

Question #: 75
Topic #: 2

[All Series-6 Questions]

Which of the following investment companies will always be passively managed?

Aa face-amount certificate company

Ba unit investment trust

Ca mutual fund

Da closed-end investment company

Show Suggested Answer

Suggested Answer: D

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.

by Whitney at Apr 20, 2024, 08:50 PM

Limited Time Offer

25%

Off

Get Premium Series-6 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Alease

1 months ago

Wait, are we sure there's no option for 'all of the above'? That seems like the safest bet to me.

upvoted 0 times

Louvenia

14 days ago

B) a unit investment trust

upvoted 0 times

...

Reena

18 days ago

A) a face-amount certificate company

upvoted 0 times

...

Otis

1 months ago

I'm just going to go with 'B' and hope for the best. At least I won't have to do any actual work to manage my investments.

upvoted 0 times

Caitlin

5 days ago

User 3: I'm going with 'B' as well. Let's hope for the best!

upvoted 0 times

...

Valentin

9 days ago

User 2: Yeah, I agree. It's less work for us as investors.

upvoted 0 times

...

Ilda

1 months ago

User 1: I think 'B' is the right choice too. Passive management sounds easy.

upvoted 0 times

...

Isaac

2 months ago

Closed-end investment companies are the real MVP here. They're like the cool kids of the investment world, always trying to one-up the others.

upvoted 0 times

Trina

6 days ago

I agree, they're the ones who march to the beat of their own drum.

upvoted 0 times

...

Launa

9 days ago

Yeah, they're like the rebels of the investment world. Always doing their own thing.

upvoted 0 times

...

Willis

14 days ago

Closed-end investment companies are definitely the cool kids. They always stand out.

upvoted 0 times

...

Marilynn

2 months ago

A face-amount certificate company? What is this, the 1920s? Let's stick with something more modern, like a mutual fund.

upvoted 0 times

...

Chun

2 months ago

Unit investment trusts are definitely the way to go, they're like the lazy person's investment choice - just set it and forget it!

upvoted 0 times

Judy

18 days ago

Face-amount certificate companies are too risky for my taste, I'll stick with unit investment trusts.

upvoted 0 times

...

Nu

19 days ago

I think closed-end investment companies can also be passively managed if you choose the right ones.

upvoted 0 times

...

James

1 months ago

I prefer mutual funds because they offer diversification and professional management.

upvoted 0 times

...

Danilo

1 months ago

I agree, unit investment trusts are great for passive investors.

upvoted 0 times

...

Josue

2 months ago

But what about a closed-end investment company? Couldn't that also be passively managed?

upvoted 0 times

...

Arleen

2 months ago

I agree with Shaun, a unit investment trust typically follows a passive management strategy.

upvoted 0 times

...

Shaun

3 months ago

I think a unit investment trust will always be passively managed.

upvoted 0 times

...