Series 6 Practice Questions with Answers

🧾 Series 6 Practice Questions with Answers
📘 Sharpen Your Knowledge with Entry-Level FINRA Exam Practice

The Series 6 exam (Investment Company and Variable Contracts Products Representative Exam) qualifies individuals to sell mutual funds, variable annuities, unit investment trusts (UITs), and 529 plans. Below are 10 sample questions with explanations designed to mirror the real test format.

🔢 Series 6 Practice Questions (With Answers)

1. Which of the following products may a Series 6 representative sell?

A) Individual stocks
B) Variable annuities
C) Options contracts
D) Exchange-traded futures

✅ Answer: B) Variable annuities
Explanation: Series 6 license holders may sell packaged products, including variable annuities. They may not sell individual securities or derivatives.

2. What document must be provided to a customer purchasing mutual fund shares?

A) Final prospectus
B) Summary prospectus
C) Statement of additional information
D) Trade confirmation only

✅ Answer: B) Summary prospectus
Explanation: A summary prospectus may be provided at or before the sale. A full prospectus must be delivered upon request.

3. Which of the following is NOT a characteristic of a mutual fund?

A) Diversification
B) Professionally managed
C) Shares trade throughout the day
D) Redeemable shares

✅ Answer: C) Shares trade throughout the day
Explanation: Mutual fund shares are priced once per day at the market close (NAV), not traded intraday.

4. A registered representative suggests switching between mutual funds with similar objectives. What must be considered?

A) Commissions only
B) The client’s risk tolerance only
C) Whether the switch is in the client’s best interest
D) Past performance of the new fund

✅ Answer: C) Whether the switch is in the client’s best interest
Explanation: “Switching” must have a legitimate investment purpose. Otherwise, it may be deemed churning.

5. What type of fee is associated with Class B mutual fund shares?

A) Front-end load
B) Back-end load
C) No load
D) Ongoing 12b-1 fee only

✅ Answer: B) Back-end load
Explanation: Class B shares typically carry a contingent deferred sales charge (CDSC), or back-end load, which decreases over time.

6. Which of the following must a variable annuity prospectus disclose?

A) Current market interest rate
B) Guarantees provided by the issuing company
C) Investment risks
D) Projected future tax benefits

✅ Answer: C) Investment risks
Explanation: Because variable annuities involve market risk, disclosure of investment risk is mandatory in the prospectus.

7. What is the maximum contribution limit to a traditional IRA for a person under age 50 in 2025?

A) $5,500
B) $6,500
C) $7,500
D) Unlimited

✅ Answer: B) $6,500
Explanation: For 2025, the IRS limit is $6,500 for individuals under 50. Those 50+ can contribute an additional $1,000 (catch-up).

8. What feature of a 529 plan makes it attractive to many investors?

A) Guaranteed return
B) Tax-deductible contributions
C) Federal tax-free qualified withdrawals
D) High annual penalties for early withdrawal

✅ Answer: C) Federal tax-free qualified withdrawals
Explanation: Qualified education withdrawals from 529 plans are tax-free at the federal level.

9. What is the NAV per share of a mutual fund with $120 million in assets, $4 million in liabilities, and 5 million shares outstanding?

A) $23.20
B) $24.00
C) $28.00
D) $25.00

✅ Answer: A) $23.20
Explanation: NAV=Assets−LiabilitiesShares Outstanding=120M−4M5M=116M5M=23.20\text{NAV} = \frac{\text{Assets} – \text{Liabilities}}{\text{Shares Outstanding}} = \frac{120M – 4M}{5M} = \frac{116M}{5M} = 23.20

10. When must a registered representative renew their registration annually?

A) January 1
B) December 1
C) November 15
D) December 31

✅ Answer: B) December 1
Explanation: All FINRA registration renewals must be processed by December 1 each year.

📈 Scoring Guide

• 9–10 correct: Excellent – test-ready
• 7–8 correct: Solid – review weak areas
• 5–6 correct: Needs focused revision
• Below 5: Revisit fundamentals and exam structure

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