SERIES 6 EXAM INCLUDES QUESTIONS ON TYPES OF ACCOUNTS, SUCH AS PRIME BROKERAGE, ADVISORY ACCOUNTS, FEE BASED ACCOUNTS

Taking the Series 6 Exam? Have you studied the various types of accounts so that you can explain the similarities and differences? FINRA publishes a Content Outline for the Series 6 Exam, and Section 2.1 mentions testing knowledge of Types of Accounts ("e.g., prime brokerage, advisory, or fee based"). Thus FINRA is telling the Series 6 candidate that questions on this subject could appear on the Series 6 Exam.

Bob Eder devotes several pages to the various Types of Accounts in his Study for the Series 6 Exam. Here is a sample of Bob Eder's treatment:

Note on Clearing Brokers

As far as introducing brokers and clearing brokers, the clearing broker handles the back office for the introducing broker, saving the introducing broker from having to staff and fund its own back office. In effect, the clearing broker is the main office, doing all the trade executions, record-keeping, sending out confirmations and monthly statements. The introducing broker is analogous to the branch office that sends everything to the main office for handling.

Here is the link to FINRA's Content Outline for the Series 6 Exam. See the references to Types of Accounts in FINRA's Series 6 Content Outline, Section 2.1.

Study for the Series 6 Exam is available from Amazon in both paperback and Kindle e-book versions. Here is the link for Bob Eder's Study for the Series 6 Exam on Amazon.

See Bob Eder's Author Page on Amazon.com.

For questions about Bob Eder's Study for the Series 6 Exam, or questions in general about the Series 6 Exam, such as Types of Accounts, feel free to email Bob Eder at bobeder@bobeder.net.

Bob Eder received his Juris Doctor (J.D.) degree from the University of Utah, Quinney College of Law, in 2001.