Order types, trade execution, settlement, customer statements, and prohibited trading practices tested on the Series 6 exam.
This chapter covers what happens after the recommendation is made and the customer is ready to transact. Series 6 does not ask for deep trader-level mechanics, but it does expect you to understand how customer orders are entered, how trades are confirmed and settled, what customers should receive on their statements, and which transaction practices are unacceptable.
The easiest way to study this chapter is to follow the transaction lifecycle. Start with the order instruction, move to execution and confirmation, then settlement and account reporting, and finish with the prohibited behaviors that can distort or misuse the process. That sequencing makes the operational rules feel much more logical.
| Section | Main issue it covers | Better exam instinct |
|---|---|---|
| Order types and instructions | How a customer tells the firm what to do | Identify the instruction before worrying about the outcome |
| Trade execution and confirmation | What happens once the order is placed | Separate execution from post-trade disclosure |
| Settlement and delivery | How the transaction is completed and paid for | Remember that agreement date and settlement date are not the same |
| Customer statements | How ongoing account activity is reported | Think customer transparency and record accuracy |
| Prohibited activities | What conduct breaks the transaction process | Look for misuse, manipulation, or unauthorized action |
Read this chapter as a process map. The questions become easier once you know where in the transaction lifecycle the problem actually sits.