Study for the Series 6 Exam

  Planning to take the Series 6 exam to qualify as a FINRA-registered representative able to sell investment companies and variable products? Then make sure you study the provisions of SEC Regulation D which governs the offerings of private placements. Oh? You didn't think that the Series 6 would include questions on private placements? Then read on . . . Section 1.2 of  FINRA's Content Outline for the Series 6 includes a chunk on the provisions of Regulation D. This regulation sets forth conditions under which an issuer may offer a new issue privately, i.e., without making an offering available to the general public. Regulation D consists of nine sub-rules, 500 through 508, that establish conditions and definitions. Rule 506 is especially important because it lists the conditions for an unlimited amount of securities to be offered. It allows only a limited number of unaccredited investors, but does allow accredited investors to be unlimited in number. Therefore, Series 6 appl...

   Thinking of taking the Series 6 Exam? Then make sure that you study the characteristics of Private Placements and Private Offerings because you are likely to see questions about these topics on the Series 6 Exam. How do I know this? FINRA list these topics In its Content Outline for the Series 6 Exam in Section 1.2, entitled "Describe Investment Products and Services . . . " Bob Eder in his Series 6 study guide,  Study for the  Series 6  Exam , discusses Private Placements and Offerings in detail. Here is a sample of Bob Eder's discussion: Rule 506 Under Rule 506 of Reg. D, there is no dollar limit on the size of the private offering. Moreover, there may not be more than 35 investors. In addition, Reg. D allows an unlimited number of accredited investors, generally those with sizeable assets or income. In a Rule 506 offering, all purchasers, accredited or non-accredited, must be knowledgeable and sophisticated investors, meaning that they are both famili...

  The Series 6 Exam tests candidates on privacy rules that registered reps must observe for maintaining the confidentiality of financial information and financial status of customers. How do we know this? FINRA publishes a   Content Outline   for the Series 6 Exam, and Section 2.2 of the Content Outline lists the Privacy Requirements and Regulation S-P as important for the Series 6 Exam. Bob Eder in his Series 6 guide,  Study for the Series 6 Exam , discusses privacy requirements in detail. Here is a sample of Bob Eder's discussion: Regulation S-P The SEC has adopted Regulation S-P to assure that broker/dealers and investment advisory firms, as well as other firms that collect sensitive financial information of customers, comply with the law on safeguarding the privacy of personal non-public financial information. The notice must be easy to understand, conspicuous, not camouflaged in small type or font. It must be sent to all persons with whom a financial firm initia...

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 fun...

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 ...

Study for the Series 6 Exam  by Bob Eder J.D. includes discussion of Regulation Best Interest, or Regulation BI, which now applies to dealing with retail customers.  Regulation Best Interest now requires every registered representative to view his/her recommendations through the prism of whether such recommendation is in the retail customer's best interests. Regulation BI went into effect on June 30, 2020. Prior to this date, a representative was required merely to assure that his/her recommendations met the test of suitability.  Furthermore, there was no requirement to present a retail customer with conflicts of interest in writing. Regulation BI now requires this disclosure. Regulation BI applies to recommendations also on which type of accounts to recommend to retail customers, not just to securities recommendations. This means before a representative puts a retail customer into a mutual fund account, or into a margin account, or into a wrap fee account, the representa...

Planning to take the Series 6 exam to qualify as a FINRA-registered representative able to sell investment companies and variable products? Then make sure you study the provisions of SEC Regulation D which governs the offerings of private placements. Oh? You did not think that the Series 6 would include questions on private placements? Then read on . . . Section 1.2 of  FINRA's Content Outline for the Series 6 includes a chunk on the provisions of Regulation D. This regulation sets forth conditions under which an issuer may offer a new issue privately, i.e., without making an offering available to the general public. Regulation D consists of nine sub-rules, 500 through 508, that establish conditions and definitions. Rule 506 is especially important because it lists the conditions for an unlimited amount of securities to be offered. It allows only a limited number of unaccredited investors, but does allow accredited investors to be unlimited in number. Therefore, Series 6 applicants...

Are you planning to sit for the Series 6 exam, entitling you to be licensed for investment company products and variable annuities?  Then be careful how you prepare for this exam. Why? Because the Series 6 covers lots of SEC and FINRA rules, more than in previous versions of the Series 6. For example, Section One of FINRA's Content Outline covers FINRA rules on communications with the public, communications dealing with variable life insurance and variable annuities, use of investment company rankings, use of bond mutual fund volatility ratings, and a broker's obligations regarding the sale of deferred variable annuities. Bob Eder's study text, Study for the Series 6 Exam , covers all of the above subjects in detail, giving practice questions and real-life examples. Be cautious on which texts or study books you choose. Make sure that they cover the items in FINRA's Content Outline. Bob Eder's book, Study for the Series 6 Exam , is available from Amazon in ...