Free FINRA Series 6 (Investment Company and Variable Contracts Products Representative) Formula and Limits Sheet (2026)
Every Series 6 formula you need on the test, grouped by topic, rendered with full math notation. 76 formulas across 4 topics, calibrated to the 2026 syllabus. Free forever, no signup required.
All Series 6 Formulas
Opens Accounts After Obtaining and Evaluating Customers' Financial Profile and Investment Objectives
7 items
Annualized cost-to-equity ratio
, Comm = total commissions, E = account equity, m = number of months over which costs accrued
Concentration ratio of a single position
, C = concentration as a fraction of net worth, P = dollar value of the position, NW = customer net worth
Cost-to-equity ratio for churning analysis
, CE = commissions as a fraction of account equity, Comm = total commissions charged, E = account equity
Net proceeds after an early IRA withdrawal
, N = net proceeds, D = distribution, t = marginal tax rate (10% early penalty)
Early-withdrawal penalty on an IRA distribution
, P = penalty, D = amount distributed before age 59½ (10% penalty rate)
Ordinary income tax on a Traditional IRA distribution
, T = tax owed, D = amount distributed, t = marginal income tax rate
Deposit required for a full indirect rollover
, R = full rollover deposit, C = check received, W = amount withheld by the plan
Provides Customers with Information About Investments, Makes Recommendations, Transfers Assets and Maintains Appropriate Records
12 items
Net asset value per share of a fund
, A = total assets, L = total liabilities, N = shares outstanding
Dollar sales charge per share
, POP = public offering price, NAV = net asset value per share
Public offering price of an open-end fund
, NAV = net asset value per share, SC = sales charge percent (decimal)
Sales charge percentage on a mutual fund purchase
, POP = public offering price, NAV = net asset value per share
Realized profit or loss on a sale
, RPL = realized profit/loss, Proceeds = shares sold × sale price, Cost Basis = shares sold × purchase price
Account value on a customer statement
, AV = account value, S = shares of position i, P = price of position i, C = cash
Total cost of an agency buy on the confirmation
, T = total dollar amount, S = shares, P = price per share, Comm = agency commission
Unrealized profit or loss on a held position
, UPL = unrealized profit/loss, S = shares held, P_m = current market price, P_c = purchase price
Adjusted cost basis after a return-of-capital distribution
, B_0 = original cost basis per share, ROC = return-of-capital distribution per share, B_adj = adjusted basis
Taxable gift after the annual gift exclusion
, V_gift = fair market value of gift per recipient, E_annual = annual gift exclusion ($19,000 in 2026), G_taxable = taxable gift
Capital gain on gifted securities
, P_sale = sale proceeds, B_donor = donor's carryover cost basis, G = capital gain
Capital gain on inherited securities
, P_sale = sale proceeds, FMV_death = stepped-up fair market value at date of death, G = capital gain
Obtains and Verifies Customers' Purchase and Sales Instructions; Processes, Completes and Confirms Transactions
6 items
Bid-ask spread on a quote
, Ask = lowest price a seller will accept (buyer pays), Bid = highest price a buyer will pay (seller receives)
Gross cost of a purchase at the ask
, Q = number of shares bought, Ask = ask/offer price (the side a buying customer pays), before commission
Gross proceeds on a sale at the bid
, Q = number of shares sold, Bid = bid price (the side a selling customer receives), before commission
Regular-way settlement date under SEC Rule 15c6-1
, S = settlement date, T = trade date, +1 = one business day after trade date
Ex-date adjustment of an open order under FINRA Rule 5330
, P_adj = adjusted price, P_order = original buy limit or sell stop price, D = cash dividend per share (skip if marked DNR)
Regulation T customer payment deadline
, P = payment due date, S = settlement date, +2 = two business days after settlement
Series 6 Limits and Thresholds
Seeks Business for the Broker-Dealer from Customers and Potential Customers
8 items
Rule 504 exempts offerings up to $10 million in a 12-month period.
Rule 506(b) allows unlimited accredited investors plus up to 35 non-accredited but sophisticated investors with no general solicitation.
An accredited investor has income over $200,000 ($300,000 joint) in the two most recent years, or net worth over $1 million excluding the primary residence.
Filing the registration statement begins the cooling-off period, a minimum of 20 days during which no sales may occur.
Correspondence reaches 25 or fewer retail investors in 30 days (no pre-approval), while retail communication reaches more than 25 and needs principal approval before first use.
A SEC Rule 482 performance ad must show standardized average annual total return for 1, 5, and 10 years, net of the maximum sales load, plus the expense ratio and a prospectus legend.
New member firms file retail communications at least 10 business days before first use, while established firms file within 10 business days after first use.
Under FINRA Rule 2330, a principal must review and approve or reject a deferred VA application within 7 business days of the office receiving a complete application.
Opens Accounts After Obtaining and Evaluating Customers' Financial Profile and Investment Objectives
15 items
FINRA Rule 3110 requires a written supervisory system, Rule 3120 tests it at least annually, and MSRB Rule G-27 covers municipal-securities supervision.
A customer's financial profile and investment objectives must be reverified at least every 36 months, or sooner on material life changes.
A registered principal must approve a new account in writing before or promptly after the first transaction, generally by the next business day.
$12,000 commissions on a $100,000 discretionary account is 12% of equity over eight months, near 18% annualized, flagging churning.
Reg BI is SEC Rule 15l-1 setting the best-interest standard for retail customers while Form CRS is SEC Rule 17a-14, a short relationship summary.
FINRA Rule 2111.05 splits suitability into three obligations: reasonable-basis, customer-specific, and quantitative.
A $210,000 position in a $300,000 account is 70% of net worth, failing customer-specific suitability for a low-risk income objective.
The CIP requires four identifiers before opening: name, date of birth, a physical address, and a taxpayer ID (SSN or ITIN).
A corporate insider is an officer, director, or 10%-plus shareholder, and a customer employed at another member firm triggers written notice under Rule 3210.
A non-US person may satisfy CIP with a passport number and country of issuance, an alien ID card, or another government document.
A firm files a SAR for suspicious transactions at or above $5,000 and a CTR for cash over $10,000.
The 2026 Traditional IRA contribution limit is $7,000, plus a $1,000 catch-up at age 50 and older.
A non-spouse IRA beneficiary generally must empty the inherited IRA within 10 years, and re-titling an account requires Rule 4515 principal approval.
Traditional IRA RMDs begin at age 73, and withdrawals before age 59½ trigger a 10% penalty plus tax.
An indirect rollover must be redeposited within 60 days, and only one indirect IRA-to-IRA rollover is allowed per 12 months.
Provides Customers with Information About Investments, Makes Recommendations, Transfers Assets and Maintains Appropriate Records
16 items
The market has a beta of 1.0, so a beta of 1.5 moves 50% more than the market and a beta of 0.5 moves half as much.
The balance sheet identity is Assets equal Liabilities plus Shareholders' Equity, also called capital.
Straight-line depreciation on a $50,000 machine with $5,000 salvage over 5 years is $9,000 per year, computed as ($50,000 − $5,000) ÷ 5.
CAPM expected return equals the risk-free rate plus beta times the market risk premium, where the premium is market return minus the risk-free rate.
A fund cannot advertise as no-load if its 12b-1 fee exceeds 0.25% of assets annually.
Under FINRA Rule 2341 the maximum mutual fund sales charge is 8.5% of the offering price, allowed only if the fund offers breakpoints, rights of accumulation, and reinvestment at NAV.
Under conduit theory a fund avoids tax at the fund level only if it distributes at least 90% of net investment income under Subchapter M.
Variable annuity withdrawals come out LIFO as ordinary income and a 10% penalty applies on the taxable portion before age 59½.
Under SEC Rule 17a-4, order tickets and confirmations are kept 3 years while customer account records and the general ledger are kept 6 years.
A confirmation must reach the customer at or before completion of the transaction (settlement), while a FINRA Rule 2231 statement goes at least quarterly.
A customer's new account record must be retained at least 6 years after the account closes under SEC Rule 17a-4 and FINRA Rule 4510.
Under FINRA Rule 11870 ACATS, the carrying firm validates within 1 business day of the request and the transfer completes within 3 business days of validation.
A gift carries over the donor's basis and holding period, while inherited securities get a stepped-up basis at date-of-death value and automatic long-term treatment.
Under FINRA Rule 2165 a temporary hold runs up to 15 business days, extendable 10 more for 25 total, on a specified adult age 65+ or 18+ and impaired.
For 2026 the annual gift exclusion is $19,000 per recipient while the unified lifetime gift-and-estate exclusion is $15 million with a top rate of 40%.
A 12b-1 fee caps at 0.75% for distribution plus 0.25% for service, a 1.00% ceiling, and no-load status requires 12b-1 of 0.25% or less.
Obtains and Verifies Customers' Purchase and Sales Instructions; Processes, Completes and Confirms Transactions
12 items
Under FINRA Rule 5310 best execution requires reasonable diligence plus a regular and rigorous review of execution quality at least quarterly.
A fund with a next NAV of $20.40 and a 5% front-end load has a public offering price of $21.47 per share under forward pricing.
Customers sell at the bid and buy at the ask (offer), always landing on the worse side of the spread.
SEC Exchange Act Rule 15g-4 requires written disclosure of broker-dealer compensation on transactions in penny stocks.
FINRA arbitration is binding and final with very limited appeal, while mediation is voluntary and non-binding.
Customer arbitration uses the 12000 Series, industry-to-industry disputes use the 13000 Series, and mediation uses the 14000 Series.
FINRA Rule 4513 requires firms to keep records of written customer complaints for at least 4 years at the office of supervisory jurisdiction.
FINRA Rule 4530 requires firms to report specified events and certain complaints to FINRA generally within 30 calendar days of knowing or should have known.
FINRA Rule 5330 reduces open buy limit and sell stop orders by the dividend on the ex-date unless marked DNR (Do Not Reduce).
MSRB Rule G-12 is the uniform practice code for municipal securities while the FINRA 11000 Series governs corporate trades.
SEC Rule 15c6-1 sets regular-way settlement at T+1, one business day after the trade date, replacing the old T+2 cycle.
Under Regulation T the customer must pay promptly and no later than two business days after settlement date (S+2).