Free Series 6 Exam Flashcards
Memorize 50 essential terms and definitions for the Series 6 Investment Company and Variable Contracts Products Representative Exam. See the term, recall the definition, then flip to check yourself.
Open-End Investment Company (Mutual Fund)
An investment company that continuously issues and redeems shares at NAV. No limit on shares outstanding. Shares are redeemable, not traded on exchanges. Must redeem shares within 7 days of request.
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About These Series 6 Flashcards
These 50 flashcards are designed to help you memorize key terms and definitions for the Series 6 Investment Company and Variable Contracts Products Representative Exam. Each card shows a term on the front and its definition on the back—the classic flashcard format for vocabulary memorization. Use these alongside our practice questions to build both recall and comprehension.
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Frequently Asked Questions
What is the Series 6 exam pass rate?
The Series 6 exam has a pass rate of approximately 58-59% for first-time candidates, making it one of the more challenging FINRA exams despite having fewer questions than the Series 7. This is notably lower than the average 70% pass rate across FINRA exams. You must correctly answer 35 of 50 scored questions (70%) to pass. The exam costs $100 and requires firm sponsorship plus a passing SIE score.
What's the difference between Series 6 and Series 7?
Series 6 authorizes you to sell only 'packaged' investment products: mutual funds, variable annuities, variable life insurance, and unit investment trusts (UITs). Series 7 is broader, authorizing all securities including individual stocks, bonds, options, and municipal securities. Series 6 has 50 questions in 90 minutes; Series 7 has 125 questions in 3 hours 45 minutes. Series 6 costs $100; Series 7 costs $395. Many financial advisors start with Series 6 for insurance-focused roles.
Why is the Series 6 pass rate so low?
The Series 6's 58% pass rate is lower than expected because: (1) The narrow scope creates more specific, detailed questions about mutual funds and variable contracts, (2) Candidates often underestimate the exam due to its shorter length, (3) Many test-takers lack direct experience with investment companies and variable products, and (4) The 90-minute time limit gives only 1.8 minutes per question. Focused preparation on 12b-1 fees, variable annuity taxation, and suitability rules is essential.
Do I need to pass the SIE before taking Series 6?
Yes, the SIE exam is a corequisite for the Series 6. You must pass both the SIE and Series 6 to obtain the Investment Company and Variable Contracts Products Representative registration. You can take them in either order, but both must be passed before you can register. The SIE costs $80 (no sponsorship needed), while the Series 6 costs $100 and requires firm sponsorship.
What topics are covered on the Series 6 exam?
The Series 6 covers four main functions: (1) Seeking Business - prospecting and advertising rules (12%), (2) Opening Accounts - customer profiles and KYC requirements (8%), (3) Providing Information & Recommendations - the largest section at 50%, covering mutual fund share classes, variable annuity features, suitability, and product recommendations, and (4) Processing Transactions - order handling and record keeping (30%). Focus heavily on Function 3 topics.
How long should I study for the Series 6 exam?
Most candidates need 40-60 hours of study time for the Series 6 exam. A.D. Banker recommends 40-50 hours spread over 3-4 weeks. If you're also studying for the SIE simultaneously, plan 100-150 total hours for both exams. Candidates with insurance backgrounds may need less time, while those new to investment products should budget extra time for mutual fund structures and variable annuity taxation concepts.