Free FINRA Series-6 Exam Questions

Become FINRA Certified with updated Series-6 exam questions and correct answers

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Total 328 Questions | Updated On: Feb 18, 2025

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Question 1

Rank the following funds in order of their relative risk, from highest to lowest: I. growth fund II. high-yield bond fund III. high-grade bond fund IV. international fund

A : IV, I, II, III

B : I, IV, III, II

C : II, IV, I, III

D : IV, II, I, III

Answer: A

Question 2

Which of the following statements regarding the purchase and redemption of mutual fund shares is false?

A : Mutual fund shares may not be purchased on margin.

B : An investor can both purchase and sell fractional shares of mutual funds.

C : When an investor redeems his shares, the mutual fund must pay for the shares within 7 business days.

D : If an investor places an order to buy or redeem shares of a mutual fund before 4 P.M.EST on a day when the markets are open, the price will be based on the fund’s net asset value (NAV), as calculated at the end of that trading day.

Answer: C

Question 3

Which of the following is not a potential advantage associated with investing through a mutual fund?

A : lower cost associated with portfolio management

B : simplified recordkeeping

C : price discovery

D : diversification

Answer: C

Question 4

Ms. Mix always assures her clients that she will be calling them with quarterly recommendations for rebalancing their portfolios if there are any changes that she feels are appropriate. This has worked out well for her pocketbook since she has always been able to tweak each of her clients’ investment portfolios a little each quarter by recommending that they redeem their shares in one fund that hasn’t performed as well in the last quarter and use the proceeds to invest in another that has. Her clients feel cared for since she is in such regular contact with them. Is Ms. Mix violating any securities regulations with this policy of hers?

A : No. Ms. Mix is merely providing good service to her customers.

B : Yes. Mutual funds are not designed to be short-term investments.

C : It depends. There is no violation as long as her clients’ portfolios are increasing in value.

D : Yes. Any recommendation that benefits a registered representative is deemed to be in violation of FINRA’s rules regarding fair dealing.

Answer: B

Question 5

Nancy invested $1,850 in the MidFee Mutual Fund, which has a 4% front -end load. The net asset value (NAV) per share of the fund at the time of her purchase was $22.20. How many shares of the fund was Nancy able to purchase?

A : 83.33

B : 80.00

C : 80.13

D : None of the above is correct.

Answer: B

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Total 328 Questions | Updated On: Feb 18, 2025

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