Successful completion of NASD Series 6 exam would enable acandidate to obtain a Series 6 license. The license holder is able to sell investment shares, mutual fund products and life insurance.
The full name for Series 6 is The Investment Company Products/Variable Contracts Products Limited Representative Qualification Examination. Many states also require those holding a Series 6 license to pass Series 63 because of state variances.
The NASH Series 6 exam is done on a multiple-choice format. There are 100 questions.
A candidate has to brush up his/her knowledge in the following areas:
A Candidate doing the Series 6 exam is expected to have the knowledge of managing an individual client’s investments, so a grounding on portfolio, investment objectives of the client, management of risk of the client’s portfolio, stock investments, etc.
A candidate is also expected to be knowledgeable on areas such as factors affecting stocks such egg. external risks like economic factors, government policies and so on.
Part 2 – Investment Companies, Taxation and Customer Accounts This area provides an understanding of the types of investment companies and a thorough knowledge about mutual funds. It also tests on taxation issues affecting stock and mutual fund investments that will impact on the clients portfolio.
Part 3 – Variable Contracts and Retirement Plans This area has a significant focus on retirement plans. A candidate is expected to learn about advising on retirement products.
Part 4 – Securities Industry Regulations This tests on the regulatory framework governing the securities markets and instruments. You have to have a thorough knowledge of various Acts, rules governing the National Association of Securities Dealers, Securities and Exchange Commission rules governing companies traded on the stock exchanges
.Series 63 exam As stated earlier, many states require a Series 6 license holder also to take a Series 63 exam. This exam examines on state specific laws and regulations that impact stock and mutual fund investing.