TAKING THE SERIES 6 EXAM? KNOW ABOUT, AND BE ABLE TO DEFINE, MUNICIPAL FUND SECURITIES
Never heard of municipal fund securities? Then be forewarned, the Series 6 exam covers these securities and expects you to know what they are, how they are defined, and what they include.
Many Series 6 study manuals skip them altogether. Make sure that your study manual discusses and explains them.
Bob Eder devotes six whole pages to Municipal Fund Securities on pages 214 through 220 in his Study for the Series 6 Exam, including practice questions testing the reader on his/her understanding and grasp of the text.
Here is a Bob Eder paragraph on one type of municipal fund securities, local government investment pools, taken from Bob Eder's book:
"Local Government Investment Pools (LGIP's) (3.2)
Who creates local government investment pools? Answer: A state or local government creates these LGIP's as trusts for the benefit of participating local governments within the state. These LGIP's are considered to be municipal securities by the SEC and municipal fund securities by the MSRB. These investment pools provide an investment choice for local governments that have excess funds on hand that they wish to invest. LGIP's try to take into account the timing of the cash needs of participating governmental entities."
Note that Bob Eder's book includes a reference to FINRA'S Series 6 Content Outline when it lists "3.2". This assures the reader/student that this material is indeed tested by the Series 6 exam, and not some extraneous non-important filler thrown in by authors to pad their study manual books.
Here is the link to FINRA's Content Outline for the Series 6 exam. See the references to the Municipal Fund Securities in FINRA's Content Outline, section 3.2.
Here is the link to Bob Eder's Series 6 Exam study manual on Amazon.
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