Series 6 Cheat Sheet

F1 Seeking Business

24% of exam
Communication Types Selling Materials Conduct Limits Product Advertising

F2 Opening Accounts

16% of exam
Account Ownership Customer Onboarding Investment Profile Account Gate

F3 Recommendations + Records

50% of exam
Series 6 Product Scope Fund Structure Fund Pricing Variable Contracts Tax Quick Sort Risk + Records

F4 Processing Transactions

10% of exam
Orders + Resolution Best Execution Settlement Complaint Escalation

Quick Facts

Exam Series 6
Registration IR
Scored 50 questions
Pretest 5 unscored
Time 90 minutes
Pass 70
Fee $100 in 2026
Corequisite SIE
Eligibility Member-firm sponsorship

Retail vs Correspondence SE

Retail

More than 25
Thirty-day window
Generally principal preapproval

Correspondence

25 or fewer
Thirty-day window
Risk-based supervision
Audience count controls category

Communication Types SE

Correspondence 25 or fewer retail recipients
Retail communication More than 25 retail recipients
Counting window Any 30 calendar days
Institutional communication Only institutional investors
Retail approval Generally principal preapproval
Correspondence review Risk-based supervision
Institutional review Written supervisory procedures
Internal communication Not institutional communication

Selling Materials SE

Final prospectus Statutory sale disclosure
Preliminary prospectus Incomplete final offering terms
Summary prospectus Condensed fund disclosure
Generic advertising No specific security
Fund rankings Rule 2212 conditions
Bond volatility rating Rule 2213 conditions
Variable contract material Rule 2211 standards
Fair and balanced Benefits paired with risks
Promissory claim Never permitted
Material omission Makes communication misleading

Conduct Limits SE

Business-gift ceiling $300 each recipient yearly
Effective date March 30, 2026
Rule scope Business-related employee gifts
Retail customer gifts Rule 3220 does not apply
Personal gifts Rule exception may apply
De minimis items Rule exception may apply
Aggregation Same recipient annual total
Records Preserve gift details

Customer Profile OP

Assets, aims, access, attitude, and age
Assets: capacity Aims: objectives Access: liquidity Attitude: risk Age: horizon

JTWROS vs TIC OP

JTWROS

Equal undivided interests
Survivor receives share
Avoids probate transfer

TIC

Interests may differ
Estate receives share
Probate may apply
Survivor vs estate

Account Gate OP

Identity unverified → Stop account opening
Profile incomplete → Gather essential facts
Retail recommendation → Apply Reg BI
Short time horizon → Check liquidity
High concentration → Consider diversification
Discretion requested → Obtain written authority
Suspicious activity → Escalate internally
Order discrepancy → Notify supervisor
Written complaint → Record and escalate

Account Ownership OP

Individual One owner
JTWROS Survivor receives ownership
TIC Estate receives decedent share
Community property State marital ownership
Custodial Irrevocable minor gift
Trust Trustee follows document
Corporate Resolution names authority
Partnership Agreement controls authority

Customer Onboarding OP

CIP Verify customer identity
KYC Know essential customer facts
Regulation S-P Privacy and safeguards
Power of attorney Documents third-party authority
Discretionary account Written customer authority
Suspicious activity Escalate internally
Age Life-stage constraint
Income Cash-flow capacity
Net worth Financial capacity
Tax status After-tax consequence
Time horizon Holding-period need
Liquidity need Cash-access requirement
Risk tolerance Loss comfort
Investment objective Desired outcome

Function Weights RE

Seek 24 | Open 16 | Recommend 50 | Process 10
F1: 12 items F2: 8 items F3: 25 items F4: 5 items

Series 6 vs Series 7 RE

Series 6

Limited product scope
Closed-end IPO only
No stocks or options

Series 7

Broader securities scope
Closed-end secondary allowed
Stocks and options allowed
Packaged products vs broad authority

Authority Picker RE

Mutual fund sale → Series 6
Closed-end fund IPO → Series 6
Closed-end secondary trade → Broader registration
Variable annuity sale → Series 6 plus insurance
Variable life sale → Series 6 plus insurance
Individual stock trade → Broader registration
Corporate bond trade → Broader registration
Options trade → Broader registration

Series 6 Product Scope RE

Mutual funds Permitted
Closed-end fund IPO Permitted initial offering
Closed-end secondary Outside Series 6 scope
Variable annuities Permitted variable contract
Variable life Permitted variable contract
UITs Permitted
529 plans Permitted municipal fund security
LGIPs Permitted municipal fund security
ABLE accounts Municipal fund security
Individual stocks Outside Series 6 scope
Corporate bonds Outside Series 6 scope
Options Outside Series 6 scope

Fund Price Math RE

NAV + load = POP
Charge dollars: POP-NAV Charge percent: charge/POP Forward price: next NAV

Open-End vs Closed-End RE

Open-end

Continuously issued
Redeemed at next NAV
Forward priced

Closed-end

Fixed share count
Trades intraday
Premium or discount
Redeemable vs exchange-traded

Fund Charge Picker RE

Large current purchase → Check breakpoint
Existing family holdings → Use ROA
Planned future purchases → Consider LOI ( 13-month intent )
Early share redemption → Check CDSC
Calculate sales charge → POP minus NAV
Order awaits pricing → Next computed NAV
Fund family switch → Review taxes and loads
Fixed periodic purchases → DCA ( No guaranteed profit )

Fund Structure RE

Open-end fund Continuously issues redeemable shares
Closed-end fund Fixed shares trade intraday
UIT Fixed unmanaged portfolio
ETF Exchange-traded pooled shares
Money market fund Short-term portfolio
Interval fund Periodic limited repurchases
Conduit treatment Distributions pass through taxation
Diversification Reduces nonsystematic risk

AIR Direction RE

Actual beats AIR: payment rises
Actual = AIR: unchanged Actual below: payment falls

NAV vs POP RE

NAV

Portfolio value per share
Redemption basis
Excludes sales load

POP

Customer purchase price
Includes front-end load
Equals NAV when no-load
Value vs purchase price

Variable Contract Logic RE

Need market-based accumulation → Separate account
Need insurer guarantees → General account
Nonqualified annuity withdrawal → LIFO taxation
Nonqualified annuity payout → Exclusion ratio
Return exceeds AIR → Payment rises
Return trails AIR → Payment falls
Contract exchange → Section 1035 ( Review new surrender period )
Need early liquidity → Check surrender charge
Tax-deferred account purchase → Justify added benefits

Fund Pricing RE

NAV Assets minus liabilities per share
POP NAV divided by load complement
Sales charge dollars POP minus NAV
Sales charge percent Charge divided by POP
Forward pricing Next computed NAV
Front-end load Paid at purchase
CDSC Paid at redemption
12b-1 fee Asset-based distribution expense
Breakpoint Larger purchase lowers load
LOI Future purchases over 13 months
ROA Existing holdings count
Fund family exchange Usually taxable disposition
Reinvested distribution Taxable; increases basis
Dollar-cost averaging No profit guarantee
Breakpoint sale Prohibited below-threshold recommendation

Account Risk RE

General guarantees; separate swings
General: insurer risk Separate: owner risk

LOI vs ROA RE

LOI

Future purchase intent
13-month window
Escrow may apply

ROA

Existing eligible holdings
No future promise
Current value counts
Future commitment vs accumulated value

Variable Contracts RE

General account Insurer bears investment risk
Separate account Owner bears investment risk
Accumulation unit Pre-annuitization ownership unit
Annuity unit Post-annuitization payment unit
Annuitization Units fixed; values fluctuate
AIR Variable payment benchmark
Return above AIR Next payment rises
Return below AIR Next payment falls
Immediate annuity Payout begins soon
Surrender charge Early exit charge
M&E charge Insurance risk expense
Living benefit Contract-owner guarantee
Death benefit Beneficiary guarantee
Section 1035 Tax-deferred contract exchange
Variable life Securities plus insurance product

General vs Separate Account RE

General

Insurer owns assets
Insurer bears risk
Supports guarantees

Separate

Segregated assets
Owner bears risk
Values fluctuate
Guarantee vs market exposure

Tax Quick Sort RE

Nonqualified dividend Ordinary income rate
Qualified dividend Preferential federal rate
Capital gain distribution Long-term tax treatment
Return of capital Reduces cost basis
Reinvested distribution Still currently taxable
Annuity accumulation Earnings tax deferred
Nonqualified annuity withdrawal Gains first before annuitization
Nonqualified annuity payout Exclusion ratio applies
529 qualified withdrawal Federal income-tax free
529 nonqualified earnings Tax plus possible penalty
ABLE account Qualified disability expenses
LGIP Government entity cash pool

Accumulation vs Annuitization RE

Accumulation

Accumulation units
Value builds
Withdrawals remain possible

Annuitization

Annuity units
Income stream begins
Payout option controls
Build value vs receive income

Risk + Records RE

Systematic risk Cannot diversify away
Nonsystematic risk Diversification can reduce
Call risk Issuer redeems early
Reinvestment risk Future rates may fall
Liquidity risk Difficult timely sale
Concentration risk Too much one exposure
Beta Market sensitivity
Alpha Risk-adjusted excess return
Realized gain Position sold
Unrealized gain Position remains held
Confirmation Transaction details
Account statement Periodic holdings and activity

Fixed vs Variable Annuity RE

Fixed

General account
Insurer bears risk
Insurance product

Variable

Separate account
Owner bears risk
Security and insurance
Guarantee vs investment performance

Arbitration vs Mediation PR

Arbitration

Neutral decides
Usually binding
Award resolves dispute

Mediation

Mediator facilitates
Parties decide
Settlement voluntary
Decision vs facilitated agreement

Orders + Resolution PR

Order ticket Records transaction instructions
Best execution Favorable reasonably available terms
Trade date Order execution day
T+1 Standard next-business-day settlement
Trade confirmation Sent transaction disclosure
Cancel and rebill Correct documented error
Erroneous report Notify supervisor promptly
Written complaint Record and escalate
Arbitration Binding dispute resolution
Mediation Facilitated voluntary settlement
Form U4 event Escalate reportable change

Common Traps

Scored vs visible

50 scored questions ≠ 55 questions displayed

SIE vs registration

SIE grants no authority ≠ Both exams plus registration

Closed-end scope

Initial offering permitted ≠ Secondary trading excluded

Value vs price

NAV is fund value ≠ POP is purchase price

Discount vs violation

Breakpoint saves customer ≠ Breakpoint sale harms customer

DCA vs guarantee

DCA averages purchase cost ≠ Profit never guaranteed

Deferral vs deduction

Nonqualified growth tax deferred ≠ Nonqualified contribution not deductible

Tax wrapper duplication

Retirement account already deferred ≠ Annuity needs added benefit

Error vs concealment

Errors require escalation ≠ Never alter records secretly

T+1 vs forward pricing

T+1 controls settlement ≠ Next NAV controls fund price

Old gift limit

$100 is obsolete ≠ $300 since March 30, 2026

Last Minute

1. Seeking business = 24%
2. Opening accounts = 16%
3. Recommendations and records = 50%
4. Processing transactions = 10%
5. 50 scored; 5 unscored
6. Time allowed: 90 minutes
7. SIE plus sponsor required
8. $300 business-gift ceiling
9. Closed-end: initial offering only
10. NAV plus load equals POP
11. Forward price uses next NAV
12. LOI future; ROA existing
13. General guarantees; separate fluctuates
14. AIR beaten: payments rise
15. Reg BI governs retail recommendations
16. Standard settlement: T+1
17. Errors and complaints: escalate