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Finra Series-6 Exam Questions
- Topic 1: Seeks Business for the Broker-Dealer from Customers and Potential Customers: This section of the exam measures the skills of Financial Representatives and covers how professionals initiate and maintain client relationships for their broker-dealer firms. It includes understanding standards and approvals for public communications, types of marketing materials, and regulatory requirements for investment product promotions. Candidates are also evaluated on their knowledge of prospectus requirements, new issue procedures, and the legal framework governing securities offerings and advertisements.
- Topic 2: Opens Accounts After Obtaining and Evaluating Customers Financial Profile and Investment: This section of the exam measures the skills of Client Relationship Managers and focuses on gathering and assessing client information before opening investment accounts. It includes evaluating financial profiles, investment objectives, account registration types, and retirement or tax-advantaged accounts. The section emphasizes compliance with Know Your Customer (KYC) and privacy regulations, handling documentation, and obtaining supervisory approvals required for account setup and maintenance.
- Topic 3: Provides Customers with Information About Investments, Makes Recommendations, Transfers Assets, and Maintains Appropriate Records: This section of the exam measures the skills of Investment Advisors and focuses on guiding clients through investment strategies, product features, risks, and portfolio management. It evaluates customer-specific factors, suitability requirements, tax implications, and the characteristics of various investment products such as mutual funds, ETFs, annuities, and municipal fund securities. It also tests the candidate understanding of required disclosures, fees, risk factors, and procedures for maintaining accurate records, statements, and transaction confirmations.
- Topic 4: Obtains and Verifies Customers Purchase and Sales Instructions; Processes, Completes, and Confirms Transactions: This section of the exam measures the skills of Operations Specialists and focuses on executing customer orders and ensuring accurate trade processing. It includes knowledge of trade execution, best execution standards, delivery and settlement requirements, and resolving discrepancies or complaints. Candidates are assessed on their ability to handle order tickets, automated execution systems, error resolution, and regulatory reporting procedures, ensuring all transactions comply with industry and FINRA standards.
Free Finra Series-6 Exam Actual Questions
Note: Premium Questions for Series-6 were last updated On May. 07, 2026 (see below)
The primary difference between dealers and brokers is that:
The primary difference between dealers and brokers is that dealers are market makers, who buy and sell out of their own inventory of securities, while brokers are matchmakers, who match buyers with sellers. Both dealers and brokers engage in primary and secondary market transactions, and both conduct trades in stocks, bonds, and options.
Which of the following investment companies will always be passively managed?
A unit investment trust is always passively managed. Some mutual funds, such as index funds, may also be passively managed, but not all mutual funds are passively managed.
Upon receiving a complaint about one of its member firms, FINRA may:
i. require any person associated with the member firm to provide information to FINRA and to testify under oath.
ii. inspect and copy the books, records and accounts of the member firm.
iii. share information obtained from its investigation of a member firm with a foreign regulatory agency.
Upon receiving a complaint about one of its member firms, FINRA may require any person associated with the member firm to provide information and to testify under oath; it may inspect and copy the books, records, and accounts of the member firm; and it may share information obtained from its investigation of a member firm with a foreign regulatory agency. The foreign regulator must agree to treat the information confidentiality, and the agreement with the foreign regulator is predicated on two requirements: ''(A) the other regulator party to the agreement must have jurisdiction over common regulatory matters; and (B) the agreement must require the other regulator to reciprocate and share with FINRA information of regulatory interest or concern to FINRA.''
The stock of Hasbro Corporation (HAS) is selling for $44.50 and pays a dividend of $1.00 a share. What is its dividend yield, rounded to the nearest hundredth of a percent?
If Hasbro is selling for $44.50 and pays a dividend of $1.00 a share, its dividend yield is 2.25%. The dividend yield is the dividend divided by the market price: $1.00/$44.50 = 2.25%.
Liz is a new client of yours. She is 36 years old, single, and has been working and earning a nice salary since her graduation from high school. She has been contributing the maximum allowed to a TSA plan through her employer, and you have no reason to doubt that she will meet her stated goal to retire when she is 58. She also has a good health care plan through her employer and is in excellent health. She has been depositing her non-retirement savings in a money market fund and is not pleased at the pathetic return she has been earning on her current balance of $140,000. Liz has been reading some articles on the web and understands she could allocate her funds to receive a higher return. She's willing to take on a moderate level of risk, but needs your help. She informs you that she does plan to use $40,000 of her current savings as a down payment for a condo and that her investment goals are to have money available for travel and for unexpected expenses and periodic purchases such as new cars and new furniture as the needs arise. She pays taxes at the highest marginal tax rate for individual tax payers.
Based on these facts, which of the following asset allocations would best meet her needs?
i. Money market fund: 30%; investment-grade corporate bonds: 20%; blue-chip stocks: 20%; high-yield bonds: 10%; small cap stocks: 10%; foreign stocks: 10%
ii. Money market fund: 10%; investment-grade municipal bonds: 5%; blue-chip stocks: 25%; high-yield bonds: 25%; small cap stocks: 10%; foreign stocks: 25%
iii. Money market fund: 10%; investment-grade municipal bonds: 25%; growth stocks: 40%; small cap stocks: 15%; foreign stocks: 10%
The portfolio described in Selection III would be the best choice for Liz. She has little need for liquidity, so the allocation to a money market fund is only 10%. Another 40% of the allocation is in investment-grade municipal bonds and blue-chip stocks, with only 25% allocated to the riskier asset classes of foreign stocks and small caps. This meets her stated willingness to take on only a moderate level of risk. The large percentage that is allocated to municipal bonds is intended to provide her with federal tax-free interest income since she is in such a high marginal tax bracket -income that she can use for traveling and for those unexpected and periodic expenses, perhaps. The 45% allocation to growth stocks and small caps will also serve as a tax shield since these categories of stocks pay little, if any, dividends that would be taxed. Liz will only have to pay tax on capital gains when she chooses to sell these assets. The portfolio described in Selection I has far too much invested in a lower-yielding money market fund for someone who doesn't need much liquidity. Portfolio II has 60% invested in high risk securities-junk bonds, small caps, and foreign stocks-with a full 50% invested in junk bonds and foreign stocks. This would be an inappropriate allocation for an investor who is willing to accept only a moderate level of risk.
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