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FINRA Series6 real answers - Investment Company and Variable Contracts Products Representative Examination (IR)

Series6
  • Exam Code: Series6
  • Exam Name: Investment Company and Variable Contracts Products Representative Examination (IR)
  • Updated: Sep 15, 2025
  • Q & A: 325 Questions and Answers
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FINRA Investment Company and Variable Contracts Products Representative Examination (IR) Sample Questions:

1. A preemptive right:

A) gives a bond owner the option to sell the bond back to the issuer at a pre-specified price.
B) entitles its owner to buy shares of stock at a specified price within a specified time period in order to
maintain his proportionate ownership in the firm.
C) is a feature on some preferred stock issues that allows the preferred shareholders to exchange their
preferred shares for shares of the common stock of the firm.
D) is a call option that is usually attached to a bond as a sweetener.


2. Which of the following correctly describes how the holding period of a security is calculated when
determining whether its sale will result in a short-term or a long-term capital gain?

A) The holding period begins on the settlement day of the purchase and ends on the settlement day
associated with the sale.
B) The holding period begins on the settlement day of the purchase and ends on the day the sell order is
submitted.
C) The holding period begins on the settlement day of the purchase and ends on the day the sell order is
submitted.
D) The holding period begins the day after the buy order is submitted and ends the day the sell order is
submitted.


3. The stock of Nutrisystem, Inc. (NTRI) is selling for $17.70 when Miss Piggy places a limit order to buy the
stock at $17.65. During the period the order is open, NTRI falls to $17.60 and then increases to
$ 17.67.Which of the following statements is most likely to be true in this scenario?

A) Miss Piggy bought the stock for no more than $17.65 a share.
B) Miss Piggy bought the stock for $17.66 a share.
C) Miss Piggy bought the stock for no more than $17.60 a share.
D) Miss Piggy bought NTRI at $17.67 a share.


4. Rank the following entities with regard to the priority of their claims on a firm-from the highest priority to
the lowest priority-in the event of bankruptcy.
I. common shareholders
II. preferred shareholders
III. secured bondholders
IV. debenture holders

A) IV, III, II, I
B) II, III, I, IV
C) III, IV, II, I
D) III, II, IV, I


5. An ADR is:

A) a receipt designating ownership of shares of a foreign stock that are held in a trust.
B) a certificate of deposit offered by a foreign bank that is denominated in U.S. dollars.
C) another name for bankers' acceptances.
D) a bond issued by an American firm that is denominated in dollars, but is sold to foreign investors.


Solutions:

Question # 1
Answer: B
Question # 2
Answer: D
Question # 3
Answer: A
Question # 4
Answer: C
Question # 5
Answer: A

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