Study for the Series 6 Exam

I f you plan to sit for the Series 6 Exam, make sure that you thoroughly study and know the provisions of FINRA's rule on Retail Communications, Rule 2210. It is not necessary to identify Rule 2210 by its number, but it is necessary to know its major rule provisions.Why is Rule 2210 so important for the exam? The reason is that FINRA tells us that it is important in its Series 6 Content Outline in Section 1.1. Bob Eder devotes Chapter One of his Study for the Series 6 Exam to Rule 2210 and Retail Communications. Here is a sample of Bob Eder's treatment: EXAMPLE If Suzanne, a representative, recommends shares of a mutual fund, such as the XYZ Fund, in a public talk, she must have a reasonable basis for her recommendation; and Suzanne must disclose if she has a financial interest in XYZ Fund that she endorses. If she does have a financial interest, e.g., owning 500 shares of XYZ Fund, Suzanne must disclose and describe this interest. Furthermore, Suzanne must dis...

Planning to sit for the Series 6 Exam in the future? If so, make sure that you can explain and recognize the FINRA rule differences between correspondence, retail communications, and institutional correspondences. How do I know that questions on these topics may show up on your Series 6 Exam? I know this because FINRA publishes a Series 6 Exam Content Outline , and Section 1.1 specifically states that Series 6 candidates should know standards and types of various Public Communications.  Bob Eder in his Study for the Series 6 Exam presents a detailed discussion of Public Communications, including standards and required approvals. Here is a sample of Bob Eder's treatment: Correspondence (1.1) FINRA defines "correspondence" as any written or electronic communication that a brokerage firm or representative sends, distributes, or makes available to 25 or fewer retail investors, within any 30-calendar-day period. If a representative sends material to more than 25 retail cust...

Candidates for the Series 6 Exam must use care in studying FINRA's rules on Communications with Customers. These rules are involved and must be studied carefully. For example, can you explain the difference between retail communications and correspondence? Or are they the same thing treated in the same way?  Retail communications need to be filed with FINRA's Advertising Regulation Department, but correspondence does not need to be filed. However, both retail communications and correspondence need the written and dated approval of a principal of the brokerage firm before they may be used. So communications with the retail public gets complicated! Bob Eder in his Study for the Series 6 Exam devotes all of Chapter One to Communications with Customers. Here is a sample of Bob Eder's treatment and discussion: PRACTICE QUESTION FINRA has specific strict rules regarding the use of retail communications. June is a representative. She considers some of the definitions included i...

Bob Eder's Study for the Series 6 Exam is unique in several important ways. After each major paragraph in the text, Study for the Series 6 Exam indicates reference numbers that reflect FINRA's Study Guide and Content Outline. So, for example, when discussing types of accounts, such as prime brokerage, advisory accounts, or fee-based accounts, Bob Eder indicates the section of the Series 6 Content Outline, such as 2.1, next to each appropriate paragraph.  Why is this unique and why is it important? It is important because this is the student's assurance that Study for the Series 6 Exam sticks to discussions of topics covered by the Series 6 exam, and that it does not contain extraneous, excessive and unimportant material that will not be asked on the exam. Too many Series 6 study texts throw in extraneous excessive materials and topics that waste the student's limited study hours.  How do we know that they are not important, excessive, and not covered on the Series 6 ...