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: Aug 20, 2026

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Question 1

Which of the following statements regarding CMOs is false?

A : CMOs are zero-coupon bonds that are backed by real estate.

B : Relative to other bonds, CMOs are illiquid.

C : CMO investors are divided into classes, and the class determines when the investor will receive payments of principal.

D : CMOs are considered to have lower risk and, therefore, offer lower returns.

Answer: A

Question 2

Phil Anthropy wrote his cousin a $15,000 check to pay for medical bills the cousin had accumulated. He also distributed $5,000 checks to three nephews who were in college, and gave his mother a check for $12,000. Have Phil’s actions triggered any gift taxes?

A : Yes, $19,000 of his total distributions is subject to the gift tax.

B : Yes, $2,000 of his total distributions is subject to the gift tax.

C : Yes, $7,000 in distributions is subject to the gift tax.

D : No. None of Phil’s distributions is subject to the gift tax.

Answer: B

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

Joel has a 28-year-old client who has been promoted to the elevated position of senior software engineer with a large, well-known, software company at her relatively young age. She has come to Joel for investment advice, explaining to him that she is risk-averse, having been influenced by parents who grew up in a foreign country and had little, prior to immigrating to America and working hard to achieve their dreams for themselves and their children. She has $50,000 that she wants him to invest for her, and her primary goal is to be able to have enough money, beyond what she expects to have in her employer’s retirement program, to return to her home country and help others achieve their dreams. Joel explains to her that she may have to invest in riskier securities in order to achieve her goal, but his client is adamant that she wants her portfolio to be invested to target growth with the least risk exposure possible. Given the facts:

A : Joel should divide his client’s monies among growth, aggressive growth, and foreign stock funds. Regardless of what she says, she has a long investment horizon and can afford to take on more risk.

B : Joel should invest his client’s monies in a fund that specializes in stocks of his client’s home country to avoid the

C : Joel should invest his client’s monies in a fund that specializes in stocks of his client’s home country to avoid the exchange rate risk that she will be exposed to when she returns.

D : Joel should invest his client’s monies in a growth fund to target her growth objective.

Answer: D

Question 5

Ms. Scatty is a registered representative with a well-known family of mutual funds. When selling one of the funds, she forgets to give her buyer a prospectus. Which of the following statements is true?

A : Ms. Scatty can be held civilly liable under the Securities Act of 1933.

B : Ms. Scatty can be held criminally liable under the Securities Act of 1933.

C : Since mutual funds are not covered under the Securities Act of 1933, there is no liability in this instance.

D : Both A and B are true statements.

Answer: A

Page: 1 / 66

Total 328 Questions | Updated On: Aug 20, 2026

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