6 Effective Strategies to Ace the Series 6 Exam

The Series 6 exam can be challenging, especially for newcomers to the securities industry. This guide offers six straightforward strategies to help you absorb the material efficiently and perform your best on exam day. Let’s dive in!

Pass with Just 70%

Keep in mind, you only need a 70% score to pass the Series 6 exam. Prioritize studying the sections with the highest question counts to maximize your chances of passing on your first try.

The exam questions are randomly selected to align with FINRA’s content outline percentages, without a fixed subject order. However, question difficulty follows a bell curve pattern: easier questions appear at the start, difficulty peaks mid-exam, then tapers off toward the end.

Read Every Question Thoroughly

Accuracy comes from careful reading. Answering all easy and moderate questions correctly will secure a pass. Avoid rushing to pick the first seemingly correct answer—read every question and all options carefully.

For example, consider this question:

Question: What was the maximum annual IRA contribution limit for an individual in 2013?

A. $5,500
B. $6,500
C. $11,000
D. 100% of earned income up to $5,500

Correct answer: D.
Explanation: Without reading all options, one might miss that the limit depends on earned income and age. Since the question doesn’t specify age, option B is incorrect despite being a common limit for those over 50. Always avoid assumptions not stated in the question.

Target Your Study Sessions

Study with the mindset of creating test questions yourself. This helps you focus on the most critical information and prepares you for the exam’s question style.

For instance, under the Investment Company Act of 1940, investment companies fall into three categories: Face Amount Certificate Companies, Unit Investment Trusts, and Management Investment Companies.

Since Series 6 questions offer four choices, practice identifying the correct combinations. Example:

Question: Which are classifications under the Investment Company Act of 1940?
I. Face Amount Certificate Companies
II. Insurance Companies
III. Unit Investment Trusts
IV. Management Investment Companies

Options:
A. I, II, III, IV
B. II, III, IV
C. I, III, IV
D. III, IV

Answer: C.
Recognizing how exam questions are structured will boost your confidence.

Understand Concepts Over Memorizing Formulas

Rather than rote memorization, focus on grasping underlying concepts. Work through formulas in practice questions to understand their applications.

Common formulas requiring a calculator (provided at test centers) include:

Taxable Equivalent Yield (TEY) = Municipal Yield / (100% - Tax Bracket %)
Tax-Free Equivalent Yield (TFEY) = Taxable Yield × (100% - Tax Bracket %)

Tip: Municipal bonds are often favored by those in higher tax brackets, such as medical professionals. Remember "MD" to decide formula use: if municipal yield is given, divide; if not, multiply.

Other key formulas include mutual fund sales charges and bond current yield:

Sales Charge % = (Ask Price - NAV) / Ask Price
Ask Price = NAV / (100% - Sales Charge %)
Current Yield = Annual Interest Payment / Bond Price

Example question:

A mutual fund’s NAV is $21.85 and ask price is $23, indicating a 5% sales charge. How is this charge calculated?

A. As a percentage of NAV
B. Reciprocal of NAV
C. As a percentage of ask price
D. Based on market demand

Answer: C.
Knowing formulas and elimination tactics helps identify correct answers quickly.

Use Process of Elimination

Apply the "true or false" method on each statement in Roman numeral questions. Eliminate answer choices containing false statements to narrow down options.

Example:

Which expenses are included in a mutual fund’s expense ratio?
I. Advertising and Sales Literature
II. Investment Advisor Fees
III. Custodian Fees
IV. Transfer Agent Fees

Options:
A. I, II, III
B. II, III, IV
C. I, II, IV
D. II, IV

Answer: B.
Advertising expenses are paid by underwriters and excluded from expense ratios. Knowing this allows elimination of choices containing I.

Make Educated Guesses When Needed

If uncertain, use strategic guessing. For Roman numeral questions where all options seem correct, choose the option including all. For multiple-choice questions, if "all of the above" is an option, select it when guessing.

Additional advice for scheduling:

• Allow 2-3 days after completing classes before taking the exam to practice questions.
• Avoid scheduling multiple exams on the same day. For example, take the Series 6 first, then the Series 63 after a few days to optimize focus and success.

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