Study for the Series 6 Exam

SEC Regulation Best Interest  The SEC has adopted Regulation Best Interest, or Regulation BI. This regulation requires a brokerage firm, advisory firm, or representative, to consider a retail customer's best interests when making a recommendation to that customer. The broker may not factor in his or her interests when telling a retail customer to buy this or that stock, mutual fund, or any other security. Paramount is that a recommendation be in the customer's best interest. Thus, Regulation BI seeks to eliminate conflicts of interest, such as allowing a representative to recommend shares of a particular mutual fund that carry a sales charge higher than another fund, when apart from sales charge, both funds are equally suitable. FINRA's Study Outline for the Series 6 includes material about Regulation Best Interest. See 2.1, 2.2, 2.3 in the Content Outline. Here is the  link  to our book,  Study for the Series 6 Exam,  on Amazon. Here is the  link...

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...

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...

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...

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 ...