Deal of The Day! Hurry Up, Grab the Special Discount - Save 25% - Ends In 00:00:00 Coupon code: SAVE25
Welcome to Pass4Success

- Free Preparation Discussions
Mail Us support@pass4success.com
Location US
Mob_nav_barsMENU

Finra Series-6 Exam - Topic 3 Question 108 Discussion

Actual exam question for Finra's Series-6 exam
Question #: 108
Topic #: 3
[All Series-6 Questions]

Which of the following is a characteristic of a mutual fund?

Show Suggested Answer Hide Answer
Suggested Answer: B

Mutual fund shares are bought and sold through the fund itself. The shares will sell for at least net asset value, unlike shares of a closed-end investment company wherein prices are set by supply and demand forces. Mutual funds are open-end investment companies and have no fixed number of shares.


by Cora at Nov 22, 2025, 03:24 PM

Limited Time Offer

25%

Off

Get Premium Series-6 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

0/2000 characters
Submit Cancel
Arminda
1 day ago
True, but that's not a defining characteristic. B is clearer.
upvoted 0 times
...
Roy
6 days ago
I feel like A could be tricky. Selling below NAV happens sometimes.
upvoted 0 times
...
Gwen
11 days ago
Agreed! B makes sense. It's how mutual funds operate.
upvoted 0 times
...
Willow
17 days ago
Totally agree, B is the way mutual funds work!
upvoted 0 times
...
Sanjuana
22 days ago
D seems off, aren't mutual funds usually open-ended?
upvoted 0 times
...
Blondell
27 days ago
I thought shares were always sold on exchanges?
upvoted 0 times
...
Cordelia
2 months ago
A can happen, but it's not common.
upvoted 0 times
...
Noe
2 months ago
B is correct, shares are bought and sold through the fund.
upvoted 0 times
...
Kanisha
2 months ago
Mutual funds are like a box of chocolates - you never know what you're gonna get! B) is the way to go.
upvoted 0 times
...
Ngoc
2 months ago
D) the fund has a fixed number of shares that can be sold. Hmm, that doesn't sound right to me.
upvoted 0 times
...
Rasheeda
2 months ago
This is an easy one! B) is the correct answer.
upvoted 0 times
...
Lavera
2 months ago
A) shares may sell below net asset value. Happens when the market is down, but the fund still has value.
upvoted 0 times
...
Louvenia
3 months ago
B) shares are bought and sold through the fund. That's the classic mutual fund model.
upvoted 0 times
...
Jean
3 months ago
I practiced a question similar to this, and I think mutual funds can issue and redeem shares as needed, so D seems off too.
upvoted 0 times
...
Brice
3 months ago
I recall that mutual funds don't trade on exchanges like stocks do, so I think C is definitely not right.
upvoted 0 times
...
Tawanna
3 months ago
I'm not entirely sure, but I feel like I saw a question about mutual funds where it mentioned something about shares being sold below net asset value. Could that be A?
upvoted 0 times
...
Millie
3 months ago
This is a good test of my understanding of mutual funds. I'll review what I know about how they operate and see which option best fits that description.
upvoted 0 times
...
Sina
3 months ago
I'm pretty confident I know the answer to this one. Mutual funds are bought and sold directly through the fund, not on an exchange. That rules out a few of these options right away.
upvoted 0 times
...
Leatha
4 months ago
I think I remember that mutual fund shares are typically bought and sold through the fund itself, so maybe option B is correct?
upvoted 0 times
...
Jerry
4 months ago
I think B is the right answer. Shares are bought and sold through the fund.
upvoted 0 times
...
Hillary
4 months ago
C is definitely wrong. Mutual funds aren't traded on exchanges.
upvoted 0 times
...
Lucia
4 months ago
Okay, I've got a strategy for this. I'll focus on the key differences between mutual funds and other investment products. That should help me identify the right characteristic.
upvoted 0 times
...
Karina
5 months ago
Hmm, I'm a bit unsure about this one. I know mutual funds have some unique features, but I'm not totally clear on the differences between these options. I'll have to think it through carefully.
upvoted 0 times
...
Kerry
5 months ago
This seems like a straightforward question about mutual fund characteristics. I'll start by eliminating the options that don't sound right, then focus on the remaining ones.
upvoted 0 times
Estrella
4 months ago
I think A is definitely not right.
upvoted 0 times
...
...

Save Cancel