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Finra Series-6 Exam Questions
- Topic 1: Consideration of Promotion of Efficiency, Competition, and Capital Formation/ Reinvestment of dividend income and capital gains distributions
- Topic 2: Employment of Manipulative and Deceptive Devices by Brokers or Dealers/ Seminars, lectures and other group forum requirements
- Topic 3: Records To Be Made by Certain Exchange Members, Brokers and Dealers/ Standards and required approvals of public communications
- Topic 4: Exemption for Limited Offers and Sales Without Regard to Dollar Amount of Offering/ Advertising by an Investment Company as Satisfying Requirements of Section 10
- Topic 5: Types of mutual funds: equity, fixed-income, money market, interval/ Essential facts regarding customers and customer relationships
- Topic 6: Civil Liabilities Arising in Connection with Prospectuses and Communications/ Requirements for the Use of Bond Mutual Fund Volatility Ratings
- Topic 7: Circumstances for refusing or restricting activity in an account or closing accounts/ Determination of net long-term and short-term gains or losses
- Topic 8: Insignificant Deviations from a Term, Condition or Requirement of Regulation D/ Materials Not Deemed an Offer To Sell or Offer To Buy Nor a Prospectus
- Topic 9: Reasonable-basis, customer-specific and quantitative care obligations/ Financial factors relevant to assessing a customer’s investment profile
- Topic 10: Customer-specific factors that generally affect the selection of products/ Communications with the Public About Variable Life Insurance and Variable Annuities
Free Finra Series-6 Exam Actual Questions
Note: Premium Questions for Series-6 were last updated On Apr. 14, 2025 (see below)
Which of the following would not have to register as an investment adviser or an investment adviser representative under the Investment Advisers Act of 1940?
i. an insurance agent who sells only whole life and term life policies
ii. a commodity futures broker
iii. a bank employee who sells the bank's customers only CDs and other bank securities that are FDIC-insured
IV. a person that is registered as a broker-dealer with the SEC that also provides investment advice to its customers for additional compensation
Only the persons described in Selections I, II, and III would not have to register as an investment adviser or an investment adviser representative under the Investment Advisers Act of 1940. Whole life and term life policies, commodity futures, and FDIC-insured bank products are excluded from the definition of a security, and those persons selling these products need not register. Therefore, the insurance agent, the commodity futures broker, and the bank employee who sells only FDIC-insured bank securities need not register. Even if a person is registered as a broker-dealer with the SEC, if that entity also provides investment advice to its customers for additional compensation, it must register as an investment adviser.
Which of the following securities laws regulates the organizational structure and day-to-day operations of investment companies?
The Investment Company Act of 1940 regulates the organizational structure and day-to-day operations of investment companies. The Act includes requirements regarding a fund's capital structure, the custody of its assets, its investment activities, and the duties of a fund's board of directors, among other things. The Securities Act of 1933 regulates the offering of a fund's shares and requires that prospective investors be provided with a prospectus. The Securities Exchange Act of 1934 regulates secondary market activities in investment company shares and includes laws governing the principal underwriters and brokers and dealers who sell investment company shares. The Investment Advisers Act of 1940 regulates investment advisers and includes laws pertaining to their registration and recordkeeping, custodial, and reporting responsibilities.
The primary difference between dealers and brokers is that:
The primary difference between dealers and brokers is that dealers are market makers, who buy and sell out of their own inventory of securities, while brokers are matchmakers, who match buyers with sellers. Both dealers and brokers engage in primary and secondary market transactions, and both conduct trades in stocks, bonds, and options.
Which of the following formulae is used to calculate the net dividend income per share of a mutual fund?
The formula that is used to calculate the net dividend income per share of a mutual fund is: Subtract operating expenses from dividend and interest income and divide the result by the number of outstanding shares. Net dividend income per share is calculated by dividing net investment income by the number of shares outstanding, and net investment income is the income (dividends and interest) generated by the fund's investments minus the fund's operating expenses.
Which of the following plans does not have the requirement that its participants must begin withdrawing funds from the plan by April 1st of the year after they turn 70 ?
i. SIMPLE IRA II. 401(k)
iii. Roth IRA
IV. profit-sharing plan
The Roth IRA does not have the requirement that its participants must begin withdrawing funds from the plan by April 1st of the year after they turn 70 . The Roth IRA does, however, have a mandatory distribution requirement that goes into effect if the participant dies.
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