Can You Sell Stocks with a Series 6 License? Understanding the Limitations

What Can You Sell with a Series 6 License?

The Series 6 license, also known as the Investment Company and Variable Contracts Products Representative Qualification Examination, is an entry-level qualification for professionals in the financial services industry. However, it’s important to understand that this license has specific limitations on what securities products can be sold.

With a Series 6 license, you are authorized to sell:

• Mutual funds (including closed-end funds during initial offerings)
• Variable annuities
• Variable life insurance
• Unit investment trusts (UITs)
• Municipal fund securities (such as 529 college savings plans)

What Can’t You Sell with a Series 6 License?

While the Series 6 license allows for the sale of several investment products, it does not permit the sale of individual stocks. In fact, there are several securities that Series 6 license holders are not authorized to sell:
• Individual stocks
• Corporate bonds
• Municipal bonds
• Options
• Direct participation programs

Why Can’t Series 6 License Holders Sell Stocks?

The limitation on selling stocks with a Series 6 license is due to the specialized nature of this qualification. The Series 6 exam focuses primarily on packaged investment products like mutual funds and variable annuities, rather than individual securities.
For professionals who wish to sell a broader range of securities, including stocks, the Series 7 license (General Securities Representative Qualification Examination) is typically required. This license provides a more comprehensive qualification for selling various types of securities.

Expanding Your Capabilities: Beyond Series 6

If you’re interested in selling stocks and other securities not covered by the Series 6 license, you may want to consider:

Upgrading to a Series 7 license
Obtaining additional licenses to complement your Series 6
Partnering with colleagues who hold broader licenses to serve clients more comprehensively

Remember, continuing education is crucial in the financial services industry. Staying informed about licensing requirements and expanding your qualifications can open up new opportunities in your career.