FINRA Series 6 Questions and
Answers | Latest Version | 2025/2026 |
Correct & Verified
What type of security represents ownership in a company?
✔✔Common stock
Which investment company issues shares that trade throughout the day on an exchange?
✔✔Exchange-traded fund (ETF)
What document must be delivered to a customer before or at the time of mutual fund purchase?
✔✔Prospectus
Which mutual fund charge is paid when shares are purchased?
✔✔Front-end sales load
What fee compensates mutual fund companies for marketing and distribution?
✔✔12b-1 fee
Which type of mutual fund seeks to maintain a stable net asset value?
✔✔Money market fund
What risk refers to the loss of purchasing power due to rising prices?
1
,✔✔Inflation risk
Which authority regulates mutual funds under the Investment Company Act of 1940?
✔✔Securities and Exchange Commission (SEC)
What term describes the value of one mutual fund share calculated daily?
✔✔Net asset value (NAV)
What type of investment company continuously issues and redeems its own shares?
✔✔Open-end investment company
Which mutual fund objective focuses on regular income rather than growth?
✔✔Income fund
What type of dividend is paid from a mutual fund’s investment income?
✔✔Ordinary income dividend
What is capital gains distribution generated from?
✔✔Profits from the sale of portfolio securities
Which fund invests primarily in corporate and government debt securities?
✔✔Bond fund
2
,What is the primary risk associated with bond funds?
✔✔Interest rate risk
Which customer information must be obtained to determine suitability?
✔✔Investment objectives and risk tolerance
What FINRA rule requires recommendations to be suitable for the customer?
✔✔Suitability rule
What term describes reinvesting dividends to purchase additional shares?
✔✔Dividend reinvestment
Which fund invests in companies with potential for rapid expansion?
✔✔Growth fund
What is the break point in mutual fund investing?
✔✔Sales charge discount based on purchase amount
What agreement allows investors to combine purchases to reach breakpoints?
✔✔Letter of intent
3
, What fund invests in both stocks and bonds to balance risk and return?
✔✔Balanced fund
What type of risk is caused by changes in market conditions?
✔✔Market risk
What is the sales charge expressed as a percentage of offering price?
✔✔Front-end load
What type of annuity begins payments immediately after purchase?
✔✔Immediate annuity
What type of annuity accumulates funds before making payments?
✔✔Deferred annuity
What feature of variable annuities allows earnings to grow tax-deferred?
✔✔Tax deferral
What risk is assumed by the annuity owner in a variable annuity?
✔✔Investment risk
Which organization enforces rules for broker-dealers?
4
Answers | Latest Version | 2025/2026 |
Correct & Verified
What type of security represents ownership in a company?
✔✔Common stock
Which investment company issues shares that trade throughout the day on an exchange?
✔✔Exchange-traded fund (ETF)
What document must be delivered to a customer before or at the time of mutual fund purchase?
✔✔Prospectus
Which mutual fund charge is paid when shares are purchased?
✔✔Front-end sales load
What fee compensates mutual fund companies for marketing and distribution?
✔✔12b-1 fee
Which type of mutual fund seeks to maintain a stable net asset value?
✔✔Money market fund
What risk refers to the loss of purchasing power due to rising prices?
1
,✔✔Inflation risk
Which authority regulates mutual funds under the Investment Company Act of 1940?
✔✔Securities and Exchange Commission (SEC)
What term describes the value of one mutual fund share calculated daily?
✔✔Net asset value (NAV)
What type of investment company continuously issues and redeems its own shares?
✔✔Open-end investment company
Which mutual fund objective focuses on regular income rather than growth?
✔✔Income fund
What type of dividend is paid from a mutual fund’s investment income?
✔✔Ordinary income dividend
What is capital gains distribution generated from?
✔✔Profits from the sale of portfolio securities
Which fund invests primarily in corporate and government debt securities?
✔✔Bond fund
2
,What is the primary risk associated with bond funds?
✔✔Interest rate risk
Which customer information must be obtained to determine suitability?
✔✔Investment objectives and risk tolerance
What FINRA rule requires recommendations to be suitable for the customer?
✔✔Suitability rule
What term describes reinvesting dividends to purchase additional shares?
✔✔Dividend reinvestment
Which fund invests in companies with potential for rapid expansion?
✔✔Growth fund
What is the break point in mutual fund investing?
✔✔Sales charge discount based on purchase amount
What agreement allows investors to combine purchases to reach breakpoints?
✔✔Letter of intent
3
, What fund invests in both stocks and bonds to balance risk and return?
✔✔Balanced fund
What type of risk is caused by changes in market conditions?
✔✔Market risk
What is the sales charge expressed as a percentage of offering price?
✔✔Front-end load
What type of annuity begins payments immediately after purchase?
✔✔Immediate annuity
What type of annuity accumulates funds before making payments?
✔✔Deferred annuity
What feature of variable annuities allows earnings to grow tax-deferred?
✔✔Tax deferral
What risk is assumed by the annuity owner in a variable annuity?
✔✔Investment risk
Which organization enforces rules for broker-dealers?
4
