Finra Exam Series-6 Topic 5 Question 84 Discussion

Actual exam question for Finra's Series-6 exam

Question #: 84
Topic #: 5

[All Series-6 Questions]

Mandatory guidelines for the prospectuses of which of the following are dictated by the Investment Company Act of 1940?

i. mutual funds

ii. closed-end investment companies

iii. unit investment trusts

IV. variable contracts

AI and II only

BII only

CI, II, and III only

DI, II, III, and IV

Show Suggested Answer

Suggested Answer: A

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.

by Marg at Aug 03, 2024, 06:25 AM

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Cyndy

2 months ago

If you get this wrong, the SEC is going to send the investment police after you. They have a strict dress code and everything.

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Mila

10 days ago

B) II only

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Nobuko

12 days ago

I hope I got this right, I don't want the investment police after me!

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Wilford

1 months ago

A) I and II only

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Carmen

2 months ago

Hmm, I'm leaning towards B. The question seems to be focused on closed-end investment companies, and that's the only one that's explicitly mentioned. Maybe the other types are a trick question?

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Louvenia

3 days ago

I agree with you, I think it's C as well. It seems logical that the guidelines would cover all the types of investment companies listed in the question.

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Dong

4 days ago

I'm not sure, but I think it's C. It makes sense that the guidelines would apply to all types of investment companies mentioned in the question.

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Daryl

6 days ago

I see your point, but I still think it's B. The question specifically mentions closed-end investment companies, so I believe that's the correct answer.

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Gail

25 days ago

I think it's D. The Investment Company Act of 1940 covers all types of investment companies, including mutual funds, closed-end investment companies, unit investment trusts, and variable contracts.

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Kristeen

2 months ago

D has to be the right answer. The question specifically asks about which ones are dictated by the Investment Company Act, and that includes all of them. Easy peasy!

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Dolores

2 months ago

I'm going with C. Mutual funds, closed-end investment companies, and unit investment trusts are all regulated by the Investment Company Act, but variable contracts are a different animal.

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Adrianna

1 months ago

I think D is the right choice. It covers all the options mentioned in the question.

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Val

2 months ago

I agree, C is the correct answer. Variable contracts are not covered by the Investment Company Act.

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Twana

2 months ago

I think the answer is D, that covers all the types of investment companies mentioned in the question. The Investment Company Act of 1940 has mandatory guidelines for all of them.

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