An investor submits a $9,500 purchase order for a mutual fund that has a breakpoint at $10,000. The registered representative does not mention the breakpoint. Under FINRA rules, this situation MOST likely constitutes:
Practise this Series 6 question free, then download the PDF, watch the video walkthrough, or unlock timed mock exams for the full web bank.
ABreakpoint selling, a prohibited practice requiring the rep to inform the customer of the available discount
BAn acceptable practice as long as the investor signs a breakpoint waiver in the account agreement
CA suitable recommendation because the investor chose the amount independently
DA violation only if the investment is in a retirement account
✓ Correct answer: A. Breakpoint selling, a prohibited practice requiring the rep to inform the customer of the available discountFINRA rules prohibit 'breakpoint selling' — structuring purchases just below a breakpoint threshold to earn a higher commission — and require representatives to inform customers of available breakpoints regardless of who initiates the transaction amount.
Keep practising. Use the free Series 6 PDF, watch the YouTube walkthrough, or unlock all 10 web questions with timed mock exams.
Free practice here. Timed mocks when you are ready.
Study the Series 6 Exam Prep 2026 free question explanations, download the PDF, then unlock timed mock exams on the web when you want exam-day practice.
Theory