Study for the Series 6 Exam

One of the common misunderstandings of "living trusts" is that a person who sets up the trust, i.e., the "grantor," obtains sizeable and valuable tax benefits. This is not correct. The purpose of setting up a living or "revocable trust" is to provide an easier way to transfer assets to beneficiaries upon the death of the grantor, not to obtain tax benefits either for the grantor or for the beneficiaries. The subject of Trusts is contained in the Series 6 Content Outline published by FINRA, indicating that questions on living trusts are contained on the Series 6 exam. (See FINRA Series 6 Content Outline Section 2.2.) Bob Eder discusses Trusts and Estates in his Study for the Series 6 Exam . Here is a sample of Bob Eder's treatment of Living Trusts: Trust Accounts                                         ...

  The Series 6 exam asks questions on an applicant's knowledge of the process for bringing new issues to market, This topic includes requirements to give purchasers copies of the new-issue prospectus. It also includes knowledge of the preliminary prospectus and the timeliness of information. The Series 6 exam tests applicants on their knowledge of providing a prospectus to persons purchasing mutual funds. Applicants must also have working knowledge of the process for bringing new issues to market, including exercise of due diligence and full disclosure. Applicants must also be familiar with preliminary prospectuses and underwriting agreements, selling group agreements, and blue-sky laws regarding new issues. The Series 6 exam tests applicants on their knowledge of the difference between prospectuses and official statements, the latter being used for new issues of municipal securities. Make sure that you are familiar with these topics before you sit for the Series 6 exam. You can fi...

Are you thinking of taking the Series 6 exam and becoming licensed to sell mutual funds and variable annuities? Then be prepared for questions on FINRA's rules involving communication with customers. In FINRA's Content Outline for the Series 6, Section 1.1 specifies that a test candidate needs to have requisite knowledge of various FINRA rules on what a representative may may say to a customer about investment products. Rule 2210 is the major rule in this group, specifying minimum standards and required approvals of communications with the public. Bob Eder's Study for the Series 6 Exam covers these FINRA rules in detail. Chapter One is entitled "Communication with Customers." Bob Eder's chapter covers retail communications, approval by principals, sales presentations, correspondence sent out by representatives, retail investors, and much more. Here is the link to FINRA's Content Outline for the Series 6 . Bob Eder's book is available from Amazon in bot...

One of the common misunderstandings of "living trusts" is that a person who sets up the trust, i.e., the "grantor," obtains sizeable and valuable tax benefits. This is not correct. The purpose of setting up a living or "revocable trust is to provide an easier way to transfer assets to beneficiaries upon the death of the grantor, not to obtain tax benefits either for the grantor or for the beneficiaries. The subject of living trusts is contained in the Series 6 Content Outline published by FINRA, indicating that questions on living trusts are contained in the Series 6 exam. Here is the link to FINRA's Content Outline for the Series 6 . For more discussion of living trusts,   see Study for the Series 6 Exam. Bob Eder's book is available from Amazon in both paperback and Kindle e-book versions.  Here is the link to Bob Eder's book on Amazon . Bob Eder received his Juris Doctor (J.D.) degree from the University of Utah, Quinney College of Law in 2001.

Thinking of taking the Series 6 exam because you wish to become registered to sell investment companies, mutual funds, and variable products? Then you should know that the Series 6 exam, administered by FINRA, contains a total of 55 questions, of which five are "experimental" and thus do not count towards your score. You have 90 minutes to complete the Series 6. Passing score is 70 percent, or 35 questions answered correctly. Bob Eder's study text,  Study for the Series 6 Exam , explains the items covered on the Series 6 exam, such as Regulation D and private placements, including practice questions.  For your assistance, Bob Eder's book places the numbered sections of  FINRA's  Content Outline next to major paragraphs. This allows the student to be confident that the material in Study for the Series 6 Exam corresponds with FINRA's Study Outline. Bob Eder's book,  Study for the Series 6 Exam , is available from Amazon in either paperback or...

In my last post, I discussed why the Series 6 exam presents a challenge to applicants that is much harder than the former versions of the test. In this post, I want to continue with this theme, and describe additional elements appearing in FINRA's Content Outline. Section 1.2 of the Content Outline requires knowledge on bringing new issues of securities to market. The Content Outline indicates that the applicant need have familiarity with prospectus requirements, including timeliness of information, the workings of a preliminary prospectus, and the differences between preliminary and final prospectuses. Therefore, an applicant needs to study contents of prospectuses, plus concepts such as due diligence, underwriting agreements, blue-sky laws and procedures. Also required is knowledge of official statements, preliminary official statements, and municipal notices of sale. You can see why the Series 6 can pose problems for those taking it, especially if they go into the exam unp...