STUDYSAGE
Series 6 exam review with
100% correct answers.
On the 2-year anniversary of their registration and every 3 years
thereafter. - correct answer✔️✔ ️W hen must RRs complete the
Regulatory Element of Continuing Education?
True - correct answer✔️✔ ️T rue or False:
three items must be specified on a not held order
A not held order will be considered a day order. - correct
answer✔️✔ ️F or how long may a not held order be maintained?
The Trust Indenture Act of 1939 regulates corporate bond offerings (NOT
municipal or government offerings). - correct answer ✔️✔ ️T he Trust
Indenture Act of 1939 regulates ________________ offerings.
state and local tax. - correct answer✔️✔ ️T hough subject to federal tax,
interest on Treasuries is exempt from ________ and ________ tax.
True. The interest is taxed at the federal, state, and local level. - correct
answer✔️✔ ️T rue or False: Interest paid on GNMA, FNMA, FHLMC, and
SLMA agency bonds is fully taxable to investors.
new issues. - correct answer✔️✔ ️T he Securities Act of 1933 regulates
_____________.
Provide investors with full and fair disclosure regarding new issues
(prospectus) - correct answer✔️✔ ️W hat is the primary purpose of the
Securities Act of 1933?
1
,STUDYSAGE
False - correct answer✔️✔ ️T rue or False: The SEC judges an offering's
investment merit and provides approval.
Government/municipal bonds, commercial paper, bankers' acceptances,
bank issues, non-profit and small business issues - correct
answer✔️✔ ️L ist the securities that are exempt from registration.
anti-fraud - correct answer✔️✔ ️T hough some securities are exempt from
registration, nothing is exempt from the ____________ provisions of the
Act.
35 is the maximum number of non-accredited investors allowed in a
Private Placement. - correct answer✔️✔ ️_ ___ is the maximum number of
non-accredited investors allowed in a Private Placement.
Yes, so potential purchasers can provide indications of interest. - correct
answer✔️✔ ️M ay a preliminary prospectus (red herring) be sent during
the cooling-off period?
non-binding - correct answer✔️✔ ️I ndications of interest are
_______________ on both the customer and BD.
Return the check to the customer - correct answer ✔️✔ ️W hat should an
RR do if a client sends a check to purchase securities going through the
cooling-off period?
True - correct answer✔️✔ ️T rue or False: If a registration statement has
not been filed with the SEC, BDs may not discuss new issue information.
2
, STUDYSAGE
final offering price - correct answer✔️✔ ️T he ____________________
will not appear in a red herring.
Blue-Sky Laws - correct answer✔️✔ ️W hat rules govern the registration
of an issue in any state in which it will be offered?
true - correct answer✔️✔ ️T rue or False: Blue-Sky Laws apply to broker-
dealers and agents operating within a state.
the syndicate. - correct answer✔️✔ ️I n a firm commitment underwriting,
unsold securities are retained by ________________.
the issuer - correct answer✔️✔ ️I n a best-efforts underwriting, unsold
securities are retained by ______________.
All-or-None - correct answer✔️✔ ️W hat type of underwriting is cancelled
if the entire issue is not sold?
Mini-max - correct answer✔️✔ ️W hat type of underwriting is cancelled if
a specified portion is not sold?
Stand-by - correct answer✔️✔ ️A ___________ underwriting is used for
shares not purchased through a rights offering.
Stabilization - correct answer✔️✔ ️_ ___________ is the only form of
price manipulation allowed by the SEC.
False. Stabilization is designed to support or keep a new issue's price
from falling. - correct answer✔️✔ ️T rue or False: Stabilization is
designed to artificially raise the price of a new issue.
3
Series 6 exam review with
100% correct answers.
On the 2-year anniversary of their registration and every 3 years
thereafter. - correct answer✔️✔ ️W hen must RRs complete the
Regulatory Element of Continuing Education?
True - correct answer✔️✔ ️T rue or False:
three items must be specified on a not held order
A not held order will be considered a day order. - correct
answer✔️✔ ️F or how long may a not held order be maintained?
The Trust Indenture Act of 1939 regulates corporate bond offerings (NOT
municipal or government offerings). - correct answer ✔️✔ ️T he Trust
Indenture Act of 1939 regulates ________________ offerings.
state and local tax. - correct answer✔️✔ ️T hough subject to federal tax,
interest on Treasuries is exempt from ________ and ________ tax.
True. The interest is taxed at the federal, state, and local level. - correct
answer✔️✔ ️T rue or False: Interest paid on GNMA, FNMA, FHLMC, and
SLMA agency bonds is fully taxable to investors.
new issues. - correct answer✔️✔ ️T he Securities Act of 1933 regulates
_____________.
Provide investors with full and fair disclosure regarding new issues
(prospectus) - correct answer✔️✔ ️W hat is the primary purpose of the
Securities Act of 1933?
1
,STUDYSAGE
False - correct answer✔️✔ ️T rue or False: The SEC judges an offering's
investment merit and provides approval.
Government/municipal bonds, commercial paper, bankers' acceptances,
bank issues, non-profit and small business issues - correct
answer✔️✔ ️L ist the securities that are exempt from registration.
anti-fraud - correct answer✔️✔ ️T hough some securities are exempt from
registration, nothing is exempt from the ____________ provisions of the
Act.
35 is the maximum number of non-accredited investors allowed in a
Private Placement. - correct answer✔️✔ ️_ ___ is the maximum number of
non-accredited investors allowed in a Private Placement.
Yes, so potential purchasers can provide indications of interest. - correct
answer✔️✔ ️M ay a preliminary prospectus (red herring) be sent during
the cooling-off period?
non-binding - correct answer✔️✔ ️I ndications of interest are
_______________ on both the customer and BD.
Return the check to the customer - correct answer ✔️✔ ️W hat should an
RR do if a client sends a check to purchase securities going through the
cooling-off period?
True - correct answer✔️✔ ️T rue or False: If a registration statement has
not been filed with the SEC, BDs may not discuss new issue information.
2
, STUDYSAGE
final offering price - correct answer✔️✔ ️T he ____________________
will not appear in a red herring.
Blue-Sky Laws - correct answer✔️✔ ️W hat rules govern the registration
of an issue in any state in which it will be offered?
true - correct answer✔️✔ ️T rue or False: Blue-Sky Laws apply to broker-
dealers and agents operating within a state.
the syndicate. - correct answer✔️✔ ️I n a firm commitment underwriting,
unsold securities are retained by ________________.
the issuer - correct answer✔️✔ ️I n a best-efforts underwriting, unsold
securities are retained by ______________.
All-or-None - correct answer✔️✔ ️W hat type of underwriting is cancelled
if the entire issue is not sold?
Mini-max - correct answer✔️✔ ️W hat type of underwriting is cancelled if
a specified portion is not sold?
Stand-by - correct answer✔️✔ ️A ___________ underwriting is used for
shares not purchased through a rights offering.
Stabilization - correct answer✔️✔ ️_ ___________ is the only form of
price manipulation allowed by the SEC.
False. Stabilization is designed to support or keep a new issue's price
from falling. - correct answer✔️✔ ️T rue or False: Stabilization is
designed to artificially raise the price of a new issue.
3
