High-yield Series 6 terms that should become fast-recognition concepts before exam day.
Use this glossary for recall speed, not first exposure. The goal is to make common Series 6 terms instantly recognizable so the exam stem feels familiar rather than dense.
| Term | Quick meaning |
|---|---|
| NAV | Per-share net asset value of a fund |
| POP | Public offering price paid by the customer |
| breakpoint | Sales-charge reduction based on purchase level or rights of accumulation |
| accumulation unit | Variable annuity unit used before annuitization |
| annuity unit | Unit used after annuitization to determine payment amount |
| suitability | Matching the recommendation to the customer’s profile and needs |
| prospectus | Disclosure document describing the investment and its risks |
Which term most directly refers to the value of a mutual fund share before a sales charge is added?
A. breakpoint
B. annuity unit
C. NAV
D. POP
Answer: C. Net asset value is the per-share value before any applicable sales charge is added to reach the public offering price.