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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?

Ashares may sell below net asset value

Bshares are bought and sold through the fund

Cshares are sold on exchange floors

Dthe fund has a fixed number of shares that can be sold

Show Suggested 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

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Kallie

3 months ago

D is misleading too. Funds can issue more shares as needed.

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Arminda

3 months ago

True, but that's not a defining characteristic. B is clearer.

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Roy

3 months ago

I feel like A could be tricky. Selling below NAV happens sometimes.

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Gwen

3 months ago

Agreed! B makes sense. It's how mutual funds operate.

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Willow

4 months ago

Totally agree, B is the way mutual funds work!

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Sanjuana

4 months ago

D seems off, aren't mutual funds usually open-ended?

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Blondell

4 months ago

I thought shares were always sold on exchanges?

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Cordelia

5 months ago

A can happen, but it's not common.

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Noe

5 months ago

B is correct, shares are bought and sold through the fund.

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Kanisha

5 months ago

Mutual funds are like a box of chocolates - you never know what you're gonna get! B) is the way to go.

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Ngoc

5 months ago

D) the fund has a fixed number of shares that can be sold. Hmm, that doesn't sound right to me.

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Rasheeda

5 months ago

This is an easy one! B) is the correct answer.

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Lavera

5 months ago

A) shares may sell below net asset value. Happens when the market is down, but the fund still has value.

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Louvenia

6 months ago

B) shares are bought and sold through the fund. That's the classic mutual fund model.

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Jean

6 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.

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Brice

6 months ago

I recall that mutual funds don't trade on exchanges like stocks do, so I think C is definitely not right.

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Tawanna

6 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?

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Millie

6 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.

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Sina

6 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.

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Leatha

7 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?

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Jerry

7 months ago

I think B is the right answer. Shares are bought and sold through the fund.

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Hillary

7 months ago

C is definitely wrong. Mutual funds aren't traded on exchanges.

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Lucia

7 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.

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Karina

8 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.

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Kerry

8 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.

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Ailene

2 months ago

D is tricky, but I’d go with B too.

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Ruth

2 months ago

C is also wrong. They don’t sell on exchange floors.

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Lemuel

3 months ago

B sounds correct. Shares are bought through the fund.

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Patria

3 months ago

Agreed, A doesn’t fit.

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Estrella

7 months ago

I think A is definitely not right.

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