Series 6 Exam Questions & Answers 2026 (1–10)

Question 1

An investor purchases $45,000 of Class A shares in a mutual fund. The fund's breakpoint schedule offers a reduced sales load at $50,000. The investor signs a letter of intent (LOI) to invest an additional $10,000 within 13 months. Which of the following BEST describes the immediate effect of the LOI?

TheoryPractice · Accepted Answer

The investor receives the $50,000 breakpoint sales load rate on the current $45,000 purchase immediately. A letter of intent allows investors to receive the breakpoint discount immediately on current purchases, with the understanding they intend to reach the qualifying amount within 13 months; shares are escrowed as collateral but the reduced load applies upfront.

Question 2

A mutual fund's portfolio has securities with a total market value of $120 million. The fund has liabilities of $5 million, and 10 million shares are outstanding. An investor redeems 500 shares at 4:01 PM Eastern Time on a Tuesday. At which price will the redemption be processed?

TheoryPractice · Accepted Answer

The NAV calculated at 4:00 PM on Wednesday ($11.50 or the next computed price). Under forward pricing rules (SEC Rule 22c-1), any order received after the 4:00 PM ET cutoff must be executed at the NEXT computed NAV — meaning Wednesday's 4:00 PM calculation — not Tuesday's closing price.

Question 3

A customer holds Class B mutual fund shares and has been told her shares will 'convert' after eight years. What is the PRIMARY benefit of this conversion feature?

TheoryPractice · Accepted Answer

The shares convert to Class A shares, eliminating the ongoing 12b-1 fee charged on Class B shares. Class B shares typically convert to Class A shares after a set holding period, after which the higher 12b-1 fee assessed on Class B shares is replaced by the lower Class A 12b-1 fee, reducing ongoing fund expenses for long-term holders.

Question 4

Under FINRA rules, which of the following correctly describes how Rights of Accumulation (ROA) differ from a Letter of Intent (LOI) when qualifying for mutual fund breakpoints?

TheoryPractice · Accepted Answer

ROA gives a breakpoint discount based on the combined current and historical account value; LOI gives a breakpoint discount based on a stated future purchase commitment. Rights of Accumulation allow investors to aggregate prior holdings plus the current purchase to qualify for a breakpoint; a Letter of Intent projects future intended purchases to qualify immediately for a reduced load, making them complementary but distinct mechanisms.

Question 5

A Unit Investment Trust (UIT) differs from an open-end mutual fund primarily because a UIT:

TheoryPractice · Accepted Answer

Has a fixed, unmanaged portfolio and a stated termination date. A UIT is organized with a fixed portfolio of securities and a defined termination date; it does not continuously offer new shares and is not actively managed, distinguishing it from open-end mutual funds.

Question 6

An investor is comparing Class A and Class C mutual fund shares for a projected 18-month holding period with a $20,000 investment. Which statement MOST accurately describes Class C shares for short-term investors?

TheoryPractice · Accepted Answer

Class C shares may be more cost-effective for short-term holders because they typically have no front-end load, though they carry higher ongoing 12b-1 fees. Class C shares carry no front-end load and usually a small or no back-end load after one year, but their higher 12b-1 fees make them costlier than Class A for long-term holders; for an 18-month horizon, the absence of an upfront charge may yield lower total costs.

Question 7

A mutual fund has a maximum front-end sales load of 8.5%. To be permitted to charge this maximum rate under FINRA rules, the fund MUST offer which of the following?

TheoryPractice · Accepted Answer

Breakpoints, rights of accumulation, and reinvestment of dividends at NAV. FINRA rules allow the 8.5% maximum front-end load only when the fund offers quantity discounts (breakpoints), rights of accumulation, and the right to reinvest dividends at NAV without an additional sales charge.

Question 8

A closed-end fund with a NAV of $18.00 per share is trading on the NYSE at $15.75. An investor who purchases shares in the secondary market pays:

TheoryPractice · Accepted Answer

$15.75, representing a 12.5% discount to NAV. Closed-end fund shares trade on exchanges at market-determined prices that can be above (premium) or below (discount) NAV; in this case $15.75 is approximately 12.5% below the $18.00 NAV, and no additional sales load is charged for secondary-market purchases.

Question 9

Which of the following BEST describes the 'public offering price' (POP) of a Class A mutual fund share?

TheoryPractice · Accepted Answer

NAV plus the applicable front-end sales load. The public offering price of a Class A open-end mutual fund share equals the NAV plus any front-end sales load; open-end funds do not trade on exchanges, so there is no market price distinct from the fund's own calculated POP.

Question 10

An investor submits a $9,500 purchase order for a mutual fund that has a breakpoint at $10,000. The registered representative does not mention the breakpoint. Under FINRA rules, this situation MOST likely constitutes:

TheoryPractice · Accepted Answer

Breakpoint selling, a prohibited practice requiring the rep to inform the customer of the available discount. FINRA rules prohibit 'breakpoint selling' — structuring purchases just below a breakpoint threshold to earn a higher commission — and require representatives to inform customers of available breakpoints regardless of who initiates the transaction amount.

Series 6 Exam Questions & Answers 2026 (1–10)

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