Essential Formulas

Series 6 formula work is usually basic but precise. The exam is more likely to test whether you know which formula to apply than whether you can complete a long calculation. This appendix keeps the main formulas in one place for review.

\[ \text{NAV} = \frac{\text{Assets} - \text{Liabilities}}{\text{Shares Outstanding}} \]\[ \text{POP} = \frac{\text{NAV}}{1 - \text{Sales Charge as a Percentage of POP}} \]\[ \text{Sales Charge} = \text{POP} - \text{NAV} \]\[ \text{Current Yield} = \frac{\text{Annual Income}}{\text{Current Market Price}} \]

When Each Formula Usually Appears

Key Takeaways

• Most Series 6 formula questions are identification questions before they are math questions.
• Always confirm whether the sales charge is expressed as a percentage of POP or NAV.
• Formula review is strongest when paired with simple practice examples.

Sample Exam Question

Which formula is used to compute current yield?

A. \( \text{Annual Income} \div \text{Current Market Price} \)
B. \( \text{NAV} \div \text{Shares Outstanding} \)
C. \( \text{POP} - \text{Sales Charge} \)
D. \( \text{Assets} + \text{Liabilities} \)

Answer: A. Current yield compares annual income to the current market price of the investment.