FINRA Series 6 Exam Questions

Question 6 of 316

Mary is interested in buying shares of the Lambchops Corporation, which sells over-the-counter. The market maker with the best bid price--$3.15--is Veggie
Investments. The market maker with the best ask price--$3.27-is Carnivor Investments. Mary conducts trades in NYSE-listed stocks through her broker, Omnivor and Associates.
Given this scenario, which of the following statements is true?

Mary can buy shares of Lambchops Corporation at the bid price of $3.15 by contacting Veggie Investments directly.

Mary can buy shares of Lambchops Corporation at the ask price of $3.27 by contacting Carnivor Investments directly.

Mary can buy shares of Lambchops Corporation at the bid price of $3.15 by contacting Omnivor and Associates.

Mary can buy shares of Lambchops Corporation at the ask price of $3.27 by contacting Omnivor and Associates.

Correct Answer: D

Question 7 of 316

Noah Mete is interested in selling his shares of the Lambchops Corporation, which trades over-the-counter. The market maker with the best bid price--$3.15--is
Veggie Investments. The market maker with the best ask price--$3.27-is Carnivor Investments. Noah conducts trades in NYSE-listed stocks through his broker,
Omnivor and Associates.
Given this scenario, which of the following statements is true?

Noah can sell his shares of Lambchops Corporation at the bid price of $3.15 by contacting Veggie Investments directly.

Noah can sell his shares of Lambchops Corporation at the ask price of $3.27 by contacting Carnivor Investments directly.

Noah can sell his shares of Lambchops Corporation at the bid price of $3.15 by contacting Omnivor and Associates.

Noah can sell his shares of Lambchops Corporation at the ask price of $3.27 by contacting Omnivor and Associates.

Correct Answer: C

Question 8 of 316

Which of the following represents a secondary market transaction?

An investor buys Treasury bills in the regular Monday auction.

An investor buys 300 shares of Electromed (ELMD) at its IPO offer price of $4.00 a share.

An investor sells her shares of Sunvalley Solar, Inc. (SSOL), which sells on the OTC Bulletin Board for $0.059 a share.

A home buyer obtains a mortgage through his savings and loan.

Correct Answer: C

Question 9 of 316

Which of the following statements about primary market transactions is true?

A primary market transaction is defined as a transaction that is executed on either the NYSE or NASDAQ. Transactions that take place on ECNs are secondary market transactions.

In a primary market transaction, the issuer of the security receives the proceeds from the sale of the security.

A primary market transaction refers to the trading of stocks; a secondary market transaction is defined as a transaction that involves bonds.

Both A and B are true statements.

Correct Answer: B

Question 10 of 316

A new issue of common stock can be classified in which of the following categories?

I. primary market -

II. money market -

III. secondary market -

IV. capital market -

I only

III only

I and IV only

II and III only

Correct Answer: C