How to Pass the FINRA Series 6 Exam

Learn what the FINRA Series 6 qualifies you to do, what the exam covers, and how you should prepare for it. Continue reading

What does the FINRA Series 6 exam allow me to do?

The Series 6, also known as the Investment Company Products/Variable Contracts Representative Exam, qualifies individuals to solicit, purchase, and/or sell certain investment products. These include mutual funds, initial offerings of closed-end funds, variable life insurance, variable annuities, municipal fund securities, and unit investment trusts (UITs).

The Series 6 does not entitle you to sell all securities products – for that, you’ll need the Series 7. But if you intend to only sell the products listed above, then the Series 6 exam may be an attractive option since it is shorter than the Series 7.

Common jobs in the securities and financial services industries that use the Series 6 are investment advisers, financial advisers, insurance agents, retirement plan specialists, and private bankers. Be aware, though, that some jobs might require other exams or qualifications in addition to the Series 6, depending on the duties required for a particular job. Salary ranges vary among these types of jobs, but the average base salary of people with a Series 6 certification is $56,000 per year (payscale.com).

To take the Series 6 exam, you must be sponsored by a FINRA member firm. The firm files a Form U4 application on your behalf through FINRA’s Central Registration Depository (CRD). Candidates must pass the co-requisite Securities Industry Essentials (SIE) exam in addition to the Series 6 to obtain the Series 6 license. Although you can take the exams in any order, Solomon Exam Prep recommends taking the SIE exam first because it is a foundational exam. Anyone 18 or older can take the SIE exam, and it doesn’t require firm sponsorship.

About the Exam

The Series 6 exam consists of 50 scored and 5 unscored multiple-choice questions covering the four sections of the FINRA Series 6 exam outline. The 5 additional unscored questions are ones that the exam committee is trying out. These are unidentified and are distributed randomly throughout the exam. FINRA updates its exam questions regularly to reflect the most current rules and regulations.

Note: Scores are rounded down to the next lowest whole number (e.g. 69.9% would be a final score of 69% – not a passing score for the Series 6 exam).

Topics Covered on the Exam

FINRA divides the Series 6 exam into four sections which represent the four job functions of a Series 6 registered representative:

The Series 6 exam covers many topics including the following:

    • Securities Registration
    • Communications
    • Client Accounts
    • Retirement Plans
    • Equity Securities
    • Debt Securities
    • Taxation
    • Options
    • Investment Companies
    • Annuities
    • Portfolio Management and CAPM
    • Investment Goals
    • Securities Analysis
    • Completing and Confirming Transactions

Question Types on the Series 6

The Series 6 exam consists of multiple-choice questions, each with four options. You will see these question structures:

Closed Stem Format:

This item type asks a question and gives four possible answers from which to choose.

In the cooling-off period, which of the following would not be allowed?

    1. Making an offer to sell a security with a preliminary prospectus
    2. Taking orders for the security
    3. Publishing a tombstone ad
    4. Distributing a preliminary prospectus
Incomplete Sentence Format:

This kind of question has an incomplete sentence followed by four options that present possible conclusions.

Regulation S-P helps protect customers from:

    1. Recommendations to purchase high-risk securities such as S&P 500 index derivatives
    2. Abusive commissions and sales charges
    3. Having their private information misused
    4. Money laundering
“EXCEPT” Format:

This type requires you to recognize the one choice that is an exception among the four answer choices presented.

All of the following would be considered a security except:

    1. Publicly traded stock
    2. Publicly traded bond
    3. A variable annuity
    4. A commodities future
Complex Multiple-Choice (“Roman Numeral”) Format:

For this question type, you see a question followed by two or more statements identified by Roman numerals. The four answer choices represent combinations of these statements. You must select the combination that best answers the question.

Regarding its telemarketing efforts, a firm or its representative must do which of the following?

    1. Identify themselves and the purpose of their call
    2. Compare potential prospects against the FTC’s National Do Not Call Registry
    3. Be licensed by FINRA as a telemarketer
    4. Establish a 900 number for potential complaints
    1. I and IV
    2. I and II
    3. II and III
    4. III and IV

This format is also used in items that ask you to rank or order a set of items from highest to lowest (or vice versa), or to place a series of events in the proper sequence.

Rank the following yields for a premium bond held to maturity from highest to lowest.

    1. Yield to call
    2. Coupon rate
    3. Yield to maturity
    4. Current yield
    1. II, IV, III, I
    2. IV, I, III, II
    3. II, IV, I, III
    4. III, I, IV, II

For an even better idea of the possible question types you might encounter on the Series 6 exam, try Solomon Exam Prep’s free Series 6 Sample Quiz.

How to Study for the Series 6

Follow Solomon Exam Prep’s proven study system:
    • Read and understand. Read the Solomon Study Guide, carefully. The Series 6 is a knowledge test, not an IQ test. Many students read the Study Guide two or three times before taking the exam. To increase your ability to focus while reading, or as an alternative to reading, listen to the Solomon Series 6 Audiobook, which is a word-for-word reading of the Solomon Series 6 Study Guide.
    • Answer practice questions in the Solomon Exam Simulator. When you’re done with a chapter in the Study Guide, take 4–6 chapter quizzes in the Solomon Online Exam Simulator. Use these quizzes to give yourself practice and to find out what you need to study more. Make sure you read and understand the question rationales. When you’re finished reading the entire Study Guide, review your handwritten notes once more. Then, and only then, start taking full practice exams in the Series 6 Exam Simulator. Aim to pass at least six full practice exams and try to get your Solomon Pass Probability™ score to at least an 80%; when you reach that point, you are probably ready to sit for the Series 6 exam.
Use these effective study strategies:
    • Take handwritten notes. As you read the Study Guide, take handwritten notes and review your notes every day for 10 to 15 minutes. Studies show that the act of taking handwritten notes in your own words and then reviewing them strengthens learning and memory.
    • Make flashcards. Making your own flashcards is another powerful and proven method to reinforce memory and strengthen learning. Solomon also offers digital flashcards for the Series 6 exam.
    • Research. Research anything you do not understand. Curiosity = learning. Students who take responsibility for their own learning by researching anything they do not understand get a deeper understanding of the subject matter and are much more likely to pass.
    • Become the teacher. Studies show that explaining what you are learning greatly increases your understanding of the material. Ask someone in your life to listen and ask questions. If you don’t have anyone, explain it to yourself. Studies show that helps almost as much as explaining to an actual person (see Solomon’s recent post to learn more about this strategy!).
Take advantage of Solomon’s supplemental tools and resources:
    • Use all the resources. The Resources folder in your Solomon student account has helpful information, including a detailed study schedule that you can print out – or use the online study schedule and check off tasks as you complete them.
    • Watch the Video Lecture. This provides a helpful review of the key concepts in each chapter after reading the Solomon Study Guide. Take notes to help yourself stay focused.
  • Good practices while studying:
    • Take regular breaks. Studies show that if you are studying for an exam, taking regular walks in a park or natural setting significantly improves scores. Walks in urban areas or among people did not improve test scores.
    • Get enough sleep during the period when you are studying. Sleep consolidates learning into memory, studies show. Be good to yourself while you are studying for the Series 6: exercise, eat well, and avoid activities that will hurt your ability to get a good night’s sleep.

You can pass the FINRA Series 6! It just takes focus and determination. Solomon Exam Prep is here to support you on your journey to becoming a registered Investment Company Products/Variable Life Contracts Representative.

To explore all Solomon Exam Prep Series 6 study materials, including product samples, visit the Solomon website here.

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