FINRA SERIES 6 TEST GUIDELINES INCLUDE COST AND FEES ASSOCIATED WITH INVESTMENTS, THEREFORE KNOW THE VARIOUS AND SUNDRY FEES AND THEIR CHARACTERISTICS

The Series 6 Exam content is wide ranging, and includes knowledge of required disclosures about investment products and their characteristics, risks, services and expenses. For example, the Series 6 Exam covers the various cost and fees associated with investments such as markups, commissions, net transaction and fees of various share classes. FINRA's Test Specifications for the Series 6  Exam discuss these fees and expenses in Section 3.3.

Bob Eder in his Study for the Series 6 Exam covers these fees and expenses in detail. Here is an example of Bob Eder's treatment:

Asset-Based Charges (3.2)

If a mutual fund has an asset-based charge under Section 12b-1 of the Investment Company Act of 1940, and uses the fees generated to pay for the maintenance of shareholder accounts ("service fees"), the maximum sales charge, including front-end and deferred sales charges, cannot exceed 6.25 percent of the amount invested.

FINRA Rule on 12b-1 Charges (3.2)

FINRA restricts the amount of "asset-based charges" which a mutual fund may charge—to not more than .75 of one percent per annum.

Here is the link to FINRA's Content Outline for the Series 6 Exam. See the references to Asset-Based Charges (12b-1) in FINRA's Series 6 Content Outline, Section 3.3.

Study for the Series 6 Exam is available from Amazon in both paperback and Kindle e-book versions. Here is the link for Bob Eder's Study for the Series 6 Exam on Amazon.

See Bob Eder's Author Page on Amazon.com.

For questions about Bob Eder's Study for the Series 6 Exam, or questions in general about the Series 6 Exam, or about Asset-Based Charges (12b-1), feel free to email Bob Eder at bobeder@bobeder.net.

Bob Eder received his Juris Doctor (J.D.) degree from the University of Utah, Quinney College of Law, in 2001.