Improper trading practices representatives must recognize and avoid on the Series 6 exam.
This section covers the trading and account-handling behaviors that the representative must recognize as improper. Series 6 does not need trader-level detail to test this well. It usually does so by showing conduct that bypasses authorization, distorts activity, or uses the transaction process in a way that harms the customer or the market.
The best exam instinct is to look for broken control discipline. If the trade activity is unauthorized, manipulative, misleading, or designed to benefit the rep at the customer’s expense, that is usually the center of the problem.
| Red flag | Why it matters |
|---|---|
| Unauthorized activity | The customer did not actually direct the transaction |
| Manipulative or misleading conduct | The process is being used unfairly or deceptively |
| Improper use of customer accounts | The rep is stepping outside the customer’s authority or intent |
| Transaction abuse for personal gain | The representative’s interest is overriding the customer’s interest |
Treat this section as a control-and-conduct filter. If the transaction feels hidden, forced, or misused, the exam usually wants you to identify it as prohibited.