Author: Professor

If you have to take the FINRA Investment Company Products/Variable Contracts Limited Principal Exam, taking practice tests is one of the best ways to study. Solomon Exam Prep has created 420 high quality practice questions that test the five subject areas for the FINRA Series 26 exam and offer detailed rationales so students can learn from their mistakes.

Priced at $29.95, the Solomon Exam Prep Series 26 product is a terrific deal. “On a per question basis, the Solomon Exam Prep Series 26 practice test product is less than half the price of most the competition,” says President, Jeremy Solomon. “We’re committed to helping our customers pass their FINRA and NASAA exams quickly and affordably.”

Three sample questions:

First State Bank serves as trustee of the Milton Family Trust. As trustee, First State Bank has received information as to ownership of securities and would like to use this information to solicit purchases. Based on FINRA Rule 2060, which of the following is most accurate regarding First State Bank’s ability to use this information?

A. Because First State Bank serves as trustee, they are entitled to use this information to solicit purchases, sales or exchanges

B. Because First State Bank serves as trustee, they are never permitted to use this information to solicit purchases, sales or exchanges

C. Because First State Bank serves as trustee, they are not permitted to use this information to solicit purchases, sales or exchanges except at the request and on behalf of the issuer

D. Because a financial institution is the trustee, First State Bank does not serve a fiduciary role and may use this information to solicit purchases, sales or exchanges

Correct Answer: C

Why: FINRA Rule 2060 states that information obtained through a fiduciary capacity may not be used to solicit purchases, sales or exchanges except at the request and on behalf of the issuer. As trustee, First State Bank is considered a fiduciary and such rule is applicable. Other fiduciary roles this rule applies to include paying agent, transfer agent, and others who operate in a similar fiduciary capacity.

All of the following statements regarding an investment company are considered misleading except which of the following?

A. XYZ company has outperformed the S&P Index for the past 10 years

B. XYZ has the most effective and experienced management company in the state

C. On average, XYZ clients experience a 5% greater return than the average return for clients at ABC company

D. XYZ is the oldest investment company in the state

Correct Answer: D

Why: If accurate, stating that XYZ is the oldest investment company in the state is not a misleading statement regarding the characteristics of the investment company. All of the other statements are considered misleading because they either exaggerate claims about management skills, or give performance data which is not properly warranted or explained.

You have a brokerage account with a broker-dealer fully insured by SIPC containing securities worth $375,000 and $150,000 in cash. The broker-dealer suddenly seeks bankruptcy protection. How big of a check do you receive from the SIPC?

A. $450,000

B. $475,000

C. $500,000

D. $525,000

Correct Answer: B

Why: Your account holdings are insured up to a maximum of $500,000, of which no more than $100,000 can be in cash. You would receive $375,000 for your securities and $100,000 for the cash in your account, and would then be a general creditor of the firm for the remaining $50,000.

To order, go to: Solomon Exam Prep

For more information about the Series 26 exam, see the FINRA exam outline

Recently we spoke to someone at FINRA about the new five-hour, 175 question Series 79 Investment Banking Representative exam, and while FINRA still won’t divulge what a passing score for the exam is, their representative did tell us that a passing score on the Series 79 is in the “low seventies” like their other exams.  This score “will fluctuate over time.”   We have been told by someone who took the Series 79 exam and who has been in compliance for decades that it is “not an easy exam.”

If your firm has not created a Series 79 training program, contact Solomon Exam Prep to sign up for our exclusive Series 79 Investment Banking Representative licensing exam program offering live/interactive online classes, a Series 79 training book and a state-of-the-art practice question Series 79 exam simulator. 

With decades of teaching experience and thousands of happy customers, our Wharton, University of Chicago, Yale and Harvard-educated staff will help your firm get Series 79 candidates licensed and on their way to making your firm money!

Contact Sara DeFilippi at 503-968-6777 for more information.