The Series 6 Exam is officially titled the Investment Company Products / Variable Contracts Limited Representative Qualifications Examination. Passing this exam provides you with the qualifications to transact mutual funds, variable annuities, and variable life insurance. It is administered by FINRA, and the questions focus on mutual funds, variable contracts, customer evaluation, securities regulation, and tax rules. Try our free Series 6 practice exam to see if you are ready.
Series 6 Exam Questions
The amount of a person's income that is available for spending after food, clothing, shelter, taxes, and other essentials have been taken care of:
Edward is 50 years old and has saved for retirement with a Roth IRA. He has just inherited $300,000 and he has decided to quit his full-time job and take a part-time position. He is looking to invest the $300,000 for income. Which of these will NOT meet his objectives?
Money market funds.
Which of the following is TRUE of dollar cost averaging?
It will prevent losses in a declining market.
More money is invested when prices are low.
It is a more profitable way to buy stock.
More shares are purchased when prices are low.
Which of the following are TRUE of preferred stock?
I. Dividends are always cumulative.
II. Liquidation claims are senior to common stock.
III. Voting rights are senior to common stock.
IV. Dividend is usually a fixed percentage of par value.
II, III, IV
Regulation S-P deals primarily with:
Fees and commissions.
Options and futures trading.
NASD rules require all advertisements, sales literature, and independently prepared reprints to be maintained in a separate file for a period of _____ years from the date of last use.
Which of the following are TRUE of breakpoints?
I. Breakpoints are the investment amounts at which a fund offers investors discounts on sales charges.
II. Mutual funds are required by law to offer breakpoint discounts on front-end load funds.
III. No-load mutual funds usually have higher breakpoints.
IV. Mutual fund purchases can sometimes be combined in order to qualify for a breakpoint discount.
I, II, IV
I, III, IV
All of the following are characteristics of Roth IRAs EXCEPT:
Early withdrawals are normally subject to a 10% tax penalty.
Reaching age 59 1/2 is the only requirement to begin qualified distributions.
There are no minimum required distributions.
Contributions are not tax-deductible.
What is the annual contribution limit (per child) for Coverdell Education Savings Accounts?
No restrictions on contributions, up to the maximum lifetime contribution.
The Securities Investor Protection Corporation:
Provides insurance coverage up to $1,000,000 of the customer's net equity balance.
Was created by the Securities and Exchange Act of 1934.
Provides insurance coverage up to $250,000 of the customer's cash balance.
Exists to protect investors from market losses.
Related Exams and Resources
- Series 6 Study Guide – An overview of the best study guides available.
- Series 3 Practice Exam
- Series 7 Practice Exam
- Series 63 Practice Exam
Series 6 Exam
The Series 6 test has 100 multiple choice questions and must be completed in 135 minutes. A score of 70% is required to pass. In order to take the exam you must be sponsored by a firm that is a member of FINRA. The exam is challenging, so make sure you do plenty of Series 6 exam prep and be sure to work through plenty of practice questions, along with our Series 6 sample questions.