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.