Free Series 6 Practice Questions

Question 1

During a 30-calendar-day period, a representative sends the same PDF to 14 existing retail customers and 12 retail prospects. How must the communication be treated?

Accepted Answer

As a retail communication; it reached 26 retail investors and generally requires principal approval before first use

Answer

As correspondence, because prospects are excluded from the recipient count and only existing customers are retail investors

Answer

As an institutional communication, because prospects without accounts are treated as institutions for classification purposes

Answer

As a public appearance, because the PDF may later be displayed during a seminar

Question 2

An issuer has filed a registration statement, but it is not yet effective. A prospect offers to wire a deposit to reserve shares. What may the representative do at this stage?

Accepted Answer

Provide a preliminary prospectus and accept a nonbinding indication of interest, but not money or a purchase order

Answer

Accept the deposit in escrow if the prospect signs a nonbinding indication of interest

Answer

Enter the order now and deliver the final prospectus when the registration becomes effective

Answer

Promise an allocation, provided the prospect may cancel before settlement

Question 3

A private issuer plans an unlimited-dollar offering advertised on a public website. Every purchaser will be accredited, and the issuer will take reasonable steps to verify accredited status. Which exemption matches the plan?

Accepted Answer

Regulation D Rule 506(c)

Answer

Regulation D Rule 506(b), which permits limited nonaccredited participation

Answer

Regulation D Rule 504, subject to its $10 million offering ceiling

Answer

Securities Act Rule 147A for an offering limited to one state

Question 4

A mutual fund with a 12-year record publishes a retail advertisement showing only its favorable one-year return, calculated without the maximum sales load, and labels the fund "SEC approved." What change makes the advertisement compliant?

Accepted Answer

Present standardized 1-, 5-, and 10-year returns reflecting the maximum applicable load, remove the approval claim, and include required performance disclosures

Answer

Keep the one-year figure, add the fund's NAV, and replace "SEC approved" with "FINRA reviewed"

Answer

Show only the 10-year return, because longer performance eliminates the need to discuss sales loads

Answer

Use gross performance before expenses, provided the prospectus is delivered with the advertisement

Question 5

A Series 6 representative is asked to buy exchange-traded shares of a closed-end fund for a customer six months after the fund's initial public offering. What is the proper response?

Accepted Answer

Refer the transaction to a representative with the required broader registration; Series 6 covers the closed-end fund only in its original distribution

Answer

Enter the trade because all registered investment-company shares are within Series 6 authority

Answer

Enter the trade only if the customer marks the order unsolicited

Answer

Process the order at the next computed NAV rather than at the exchange price

Question 6

An LLC opening a brokerage account has three natural-person owners with 30%, 30%, and 40% interests. Its chief operating officer manages the entity. Whose identity must be verified under the beneficial-ownership rule?

Accepted Answer

All three owners under the ownership prong and one control person, such as the chief operating officer

Answer

Only the 40% owner and no control person, because the ownership prong stops once one person exceeds 25%

Answer

The chief operating officer only, because management authority replaces equity-owner verification

Answer

No natural person, because formation documents alone establish an LLC customer's identity

Question 7

A retired customer has $400,000 to invest, expects one or two long-term mutual fund purchases each year, does not want ongoing portfolio management, and can use a brokerage account at modest transaction cost. An advisory account would charge 1.20% of assets annually. Which account recommendation aligns with Regulation Best Interest?

Accepted Answer

Recommend the brokerage account if it meets the customer's needs after comparing costs and available alternatives

Answer

Use the advisory account because retirement status alone makes continuous monitoring and an annual asset-based fee necessary

Answer

Divide the assets equally between brokerage and advisory accounts because a blended arrangement is presumptively balanced

Answer

Decline to recommend either account until the customer agrees to active monitoring

Question 8

A new noninstitutional customer declines to provide a trusted contact person after the representative explains its purpose. Identity, authority, and account information are otherwise complete. What should the firm do?

Accepted Answer

Document the reasonable effort and explanation, then proceed if all other requirements are met

Answer

Refuse to open the account until a trusted contact age 18 or older is named, even though every other requirement is satisfied

Answer

List the representative as trusted contact so the account can be approved

Answer

Allow the customer's closest relative to trade until a trusted contact is named

Question 9

A 72-year-old customer who normally takes monthly withdrawals suddenly directs an $85,000 wire to a new acquaintance. The customer appears confused, and the acquaintance answers every question. The firm reasonably believes financial exploitation may be occurring. Which response is permitted under FINRA Rule 2165?

Accepted Answer

Temporarily hold the wire for up to 15 business days, immediately review the facts, and notify authorized parties and the trusted contact within two business days unless suspected

Answer

Freeze all transactions and disbursements until law enforcement resolves the matter, because documented suspicion authorizes an open-ended hold without notice to the customer or other account parties

Answer

Process the wire because the customer's signed instruction controls unless a court order blocks the transfer

Answer

Let the trusted contact cancel the wire, even without trading or withdrawal authority

Question 10

A diversified equity fund reports beta 1.25, alpha +1.8%, and R-squared 92% against its benchmark. What do the three statistics indicate?

Accepted Answer

High R-squared makes beta more meaningful; beta is above 1 and alpha indicates risk-adjusted outperformance

Answer

The fund has 25% more total risk, and 1.8% of its return came from dividends

Answer

The fund produced positive returns in 92% of periods and cannot fall when the benchmark rises

Answer

A 10% benchmark decline guarantees exactly a 12.5% fund decline, and the positive alpha prevents any further loss

Free Series 6 Practice Questions

Domain 1: Seeks Business for the Broker-Dealer from Customers and Potential Customers 24% of exam

Question 1

Question 2

Question 3

Question 4

Question 5

Domain 2: Opens Accounts After Obtaining and Evaluating Customers' Financial Profile and Investment Objectives 16% of exam

Question 6

Question 7

Question 8

Domain 3: Provides Customers with Information About Investments, Makes Recommendations, Transfers Assets and Maintains Appropriate Records 50% of exam

Question 9

Question 10

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