Preparing for the FINRA Series 6 exam requires a thorough understanding of its format and content. This guide will help you navigate the components of the exam, including the types of questions, subject areas, allotted time, and scoring requirements.
Exam Overview
The Series 6 exam is designed to assess the knowledge and abilities required of an investment company and variable contracts products representative. Understanding the breakdown of the exam’s sections will help in efficient preparation, ensuring you focus on the areas that matter most.
Exam Structure
The Series 6 exam consists of 55 multiple-choice questions, which candidates are given 90 minutes to complete. The exam encompasses four major functions within its content. Below is a detailed overview of these functions and their weightings in the exam:
- Function 1: Seeks Business for the Broker-Dealer from Customers and Potential Customers (24%)
- Function 2: Opens Accounts After Obtaining and Evaluating Customers’ Financial Profile and Investment Objectives (16%)
- Function 3: Provides Customers with Information About Investments, Makes Recommendations, Transfers Assets, and Maintains Appropriate Records (50%)
- Function 4: Obtains and Verifies Customers’ Purchase and Sales Instructions; Processes, Completes, and Confirms Transactions (10%)
Types of Questions
The questions are primarily multiple-choice, and they may also include unscored pretest questions. Pretest questions are used to evaluate the effectiveness of future questions and do not count towards the candidate’s final score.
Passing Score
To pass the Series 6 exam, candidates must achieve a score of 70% or higher. It is essential to have a solid understanding of all functional areas since no area should be neglected in your study routine.
Functions Breakdown and Key Focus Areas
Understanding the emphasis on each function will enhance your study plan, allowing you to allocate adequate time to the areas that carry more weight:
Function 1: Seeks Business for the Broker-Dealer
- Weight: 24%
- Duties include identifying customer needs and promoting the broker-dealer’s services.
Function 2: Account Opening and Evaluation
- Weight: 16%
- Focus on understanding how to gather financial information and assess client investments.
- Weight: 50%
- Involves educating customers and making suitable investment recommendations while maintaining records.
Function 4: Transaction Management
- Weight: 10%
- Centers around processing sales instructions accurately and efficiently.
Study Tips and Strategies
- Understand the Content Areas: Prioritize study based on weight proportion.
- Practice Makes Perfect: Take practice exams under timed conditions to simulate the actual testing environment.
- Seek Clarifications: Use FINRA resources and simulators for complex concepts or unfamiliar topics.
Practice Questions
Test your understanding with the following practice questions:
### Which function has the highest weight on the Series 6 exam?
- [ ] Function 1
- [ ] Function 2
- [x] Function 3
- [ ] Function 4
> **Explanation:** Function 3, relating to making recommendations and maintaining records, carries the highest weight of 50%.
### What is the required passing score for the Series 6 exam?
- [ ] 60%
- [x] 70%
- [ ] 75%
- [ ] 80%
> **Explanation:** Candidates need to score at least 70% to pass the Series 6 exam.
### True or False: Pretest questions count towards your final score on the Series 6 exam.
- [ ] True
- [x] False
> **Explanation:** Pretest questions are not counted in your final score; they are included to gauge suitability for future exams.
Key Takeaways
- Be aware of the distinct functions and their respective emphasis within the exam.
- Function 3 accounts for the largest portion of the exam, demanding the most study focus.
- Understand the types and format of questions: multiple-choice with some non-scored questions.
- A minimum of 70% is necessary to pass, covering all functions.
Glossary of Terms
- FINRA: Financial Industry Regulatory Authority.
- Mutual Funds: Investment programs funded by shareholders that trade in diversified holdings.
- Variable Annuities: Contracts with insurance companies offering investments in various securities.
Additional Resources
- FINRA Study Guide: Comprehensive exam-focused materials.
- Mock Exams: Featured by industry test preparation providers for hands-on practice.
- Online Seminars: Tutorials that focus on Series 6 exam preparation.
By grasping the format and major components of the Series 6 exam, candidates can tailor their preparation efficiently. Understanding these sections in detail will undoubtedly set you on the road to passing the exam and securing your qualification as a registered representative.