Series 6 Exam Prep Training Course & Study Materials

Provides Customers with Information About Investments, Makes Suitable Recommendations, Transfers Assets and Maintains Appropriate Records

• Customer-specific factors that generally affect the section of products (i.e., customer's investment profile, including the customer's risk tolerance, investment time horizon and investment objectives, liquidity needs)
• Portfolio of account analysis and its application to product selection (e.g., diversification, concentration, volatility, potential tax ramifications)
• Portfolio theory (e.g., alpha and beta considerations, Capital Asset Pricing Model (CAPM))
• Fundamental analysis of financial statements and types of financial statements included in an annual report, importance of footnotes, material risk disclosures and key terms (e.g., assets, liabilities, capital, cash flow, income)
• Balance sheet and methods of inventory valuation: last-in, first-out (LIFO), first-in, first-out (FIFO) and methods of depreciation
• Types of underlying securities
• Tax treatment
• Packaged products
• Investment companies, exchange-traded funds (ETFs), unit investment trusts (UITs)
• Variable life insurance and annuity contracts
• General characteristics of municipal fund securities
• Purpose and characteristics of specific types of municipal fund securities
• Required disclosures on specific transactions (e.g., material aspects of investments, statement of additional information, material events, control relationships)
• Types of investment risk (e.g., call, systematic and nonsystematic, reinvestment, timing)
• Types of investment returns (e.g., tax-exempt interest, return of capital)
• Costs and fees associated with investments (e.g., markups, commissions, net transactions, share classes, non-discretionary fee-based accounts, surrender charges, 12b-1 fees, mortality and expense charges in variable products, soft dollar arrangements)
• Tax considerations (e.g., unification of gift and estate taxes, lifetime exclusion, annual gift limit, taxation of securities received as a gift, inheritance or securities)
• Market analysis considerations (e.g., market sentiment, market indices, market momentum, available funds)
• Customer confirmations and statements, including components, timing, mailings to third parties, and exceptions
• Account value, profits and losses, realized and unrealized
• Customer account records (e.g., updating for change of address, sending required notifications, investment objectives)
• Books and records retention requirements
• Account closure procedures

Obtains and Verifies Customers’ Purchase and Sales Instructions; Processes, Completes and Confirms Transactions

• Orders, offerings, and transactions in customer accounts
• Trade execution activities
• Best execution obligations
• Delivery requirements and settlement of transactions
• Information required on an order ticket (e.g., symbol, account number, price)
• Use of automated execution systems
• Erroneous reports, errors, cancels and rebills
• Requirements for addressing customer complaints and consequences of improper handling of complaints
• Methods of formal resolution (e.g. arbitration, mediation, litigation)
• Form U4 reporting requirements