Series 6 study guide

Series 6 · Work through your exam, one topic at a time.

The Series 6 - formally the Investment Company and Variable Contracts Products Representative Qualification Examination, or "IR" - is the FINRA exam that measures whether an entry-level representative has the knowledge to perform the job of an investment company and variable contracts products representative. It is written for candidates who are associated with, and sponsored by, a FINRA member firm (or another applicable SRO member firm); you cannot sit for it as an independent candidate. The Series 6 study guide has 4 sections and about 1,784 words.

Seeks Business for the Broker-dealer from Customers and Potential Customers

Every contact with a prospect is a communication with the public, governed by FINRA Rule 2210. Know the three categories: correspondence (written, sent to 25 or fewer retail investors in any 30-day period), retail communication (written, more than 25 retail investors in 30 days), and institutional communication (to institutions only, no principal pre-approval required).

407 words, about 2 min 02

Opens Accounts After Obtaining and Evaluating Customers' Financial Profile and Investment Objectives

FINRA Rule 2090 and the care obligation (Reg BI for broker-dealers) require a reasonable basis for every recommendation. The new account form captures legal name, address, date of birth, SSN/TIN, employment, investment experience, annual income, net worth and liquid net worth, tax bracket, time horizon, risk tolerance, and investment objectives (income, growth, capital appreciation, capital preservation, speculation, tax deferral).

357 words, about 2 min 03

Provides Customers with Information About Investments, Makes Recommendations, Transfers Assets and Maintains Appropriate Records

For open-end funds, understand NAV , public offering price (POP) , sales charges, and 12b-1 fees. POP = NAV ÷ (1 − sales charge).

680 words, about 3 min 04

Obtains and Verifies Customers' Purchase and Sales Instructions; Processes, Completes and Confirms Transactions

Verify the instruction: buy or sell, security, quantity, order type (market, limit, stop), time-in-force (day, GTC), and the account. Note any discretion - without written authorization and principal approval you may not choose the security, the amount, or the timing.

340 words, about 2 min