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Series 6 Readiness Assessment

Test your Readiness

This isn’t just practice — it’s a preview. Use these 10 questions to see what you know and what needs work.

Think you're ready? Let’s find out.

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Question 1 of 10

A married couple, each with one child from a prior marriage, wants to open a joint account to save for future vacations. In the event one of them passes away, they want their share of the account to pass to their own child—not to the surviving spouse. Which type of account would best meet their objective?

A

Custodial account (UGMA/UTMA)

B

Irrevocable Trust account

C

Joint Tenants with Rights of Survivorship (JTWROS)

D

Joint Tenants in Common

Question 2 of 10

An investor owns a variable annuity with an assumed interest rate (AIR) of 4.5% and the estimated monthly income is $2,500. In January, the annuity’s separate account returns less than the AIR, resulting in a $2,400 payout. The following month, the separate account matches the AIR with a 4.5% return. Based on this performance, what is the most likely outcome for the next payout?

A

The payout will be less than $2,400

B

The payout will be $2,400.

C

The payout will be $2,500.

D

The payout will exceed $2,500.

Question 3 of 10

Isla is considering an investment in ABC Growth Fund but is unsure about the key distinctions between the fund’s Class A and Class B share offerings. Which of the following statements would a financial professional be least likely to make when explaining the differences?

A

Class A shares assess a front-end sales charge, whereas Class B shares impose a contingent-deferred sales charge (CDSC) that decreases the longer the investor holds the shares.

B

Class B shares generally carry higher ongoing 12b-1 fees than Class A shares.

C

For investors with limited initial capital, Class B shares may be a more suitable option.

D

Breakpoints are available for both Class A and Class B shares.

Question 4 of 10

Content posted on social media platforms that allows viewers to respond, share, or engage with it (such as by commenting or liking) is best categorized as:

A

Static content that requires principal approval before use

B

Interactive content that must be supervised for regulatory compliance

C

Interactive content requiring prior review and approval

D

Static content that must be reviewed after posting

Question 5 of 10

Which of the following statements about margin accounts is not accurate?

A

Using borrowed funds in a margin account can amplify both profits and losses

B

A broker-dealer may sell securities of its choosing without notifying the customer to meet a margin call

C

The firm has the right to raise its internal margin requirements at any time, even without prior notice

D

Clients may request an extension of time to satisfy a margin call

Question 6 of 10

The Fidelity Growth Company Fund pays a $4.50 capital gains distribution per share at the end of 2024. An investor holding the fund elects to reinvest the distribution into additional fund shares rather than take the cash. Which of the following is true?

A

The investor must report the $4.50 as taxable income in 2024

B

The reinvested distribution is tax-deferred until the investor sells fund shares

C

The $4.50 distribution will be taxable in 2025 when it appears on the tax form

D

Since the capital gains were already taxed to the investment company, the distribution to the investor is exempt

Question 7 of 10

Rocky, a new client, has expressed a preference for an income-focused portfolio that provides protection against major stock market volatility while still allowing for some growth potential. Based on these objectives, which of the following portfolio allocations would be most suitable?

A

40% U.S. stocks, 10% foreign equities, 20% foreign bonds, 30% money markets

B

30% real estate investment trusts (REITs), 40% large-cap equities, 30% bonds

C

15% U.S. stocks, 5% foreign equities, 50% bonds, 20% money market instruments

D

50% U.S. stocks, 25% foreign bonds, 25% U.S. bonds

Question 8 of 10

When referencing a mutual fund rating in communications with retail investors, all of the following disclosures are required except:

A

The source of the rating must be disclosed.

B

The criteria or methodology used to determine the rating must be explained.

C

Any compensation paid by the fund to receive the rating must be disclosed.

D

The time period covered by the rating must be disclosed.

Question 9 of 10

Which of the following events would not affect the net asset value (NAV) per share of a mutual fund?

A

A dividend payment is made to shareholders.

B

An investor submits a redemption request.

C

The fund earns interest from one of its bond holdings.

D

The market value of the fund’s portfolio declines.

Question 10 of 10

A client is reviewing the characteristics of a universal life insurance policy with their financial professional. Which of the following statements is least accurate?

A

It invests premiums in a separate account, providing for increased appreciation potential.

B

It provides permanent life insurance coverage.

C

The death benefit may increase beyond the initially selected amount.

D

Premium payments can be adjusted or temporarily skipped, offering flexibility.

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