Series 66 practice exam
The Series 66 exam - the Uniform Combined State Law Examination - is designed to test an individual's knowledge and ability to advise clients in the area of investing and how to solicit the purchase or sale of securities within a given state.
The Uniform Combined State Law Exam (a.k.a. the Series 66 exam) was created to qualify candidates as both securities agents and investment adviser representatives. It is considered a combination of the Series 63 and Series 65. The exam covers topics, both regulatory and strategic, that have been determined to be necessary to understand in order to provide investment advice to clients, as well as the purchase and sale of securities and state laws pertaining to securities.
Despite commonly being called the "FINRA Series 66" it is more accurately a North American Securities Administrators Association (NASAA) exam administered by FINRA.
A conservative investor from Idaho in the 24% federal tax bracket and 4% state tax bracket seeks an income producing investment and needs your help choosing between:
6.60% yielding AA-rated convertible bond
Which investment should you recommend?
The methods used to analyze economic factors and businesses. Topics include time value of money concepts, descriptive statistics, and the interpretation and calculation of financial ratios and valuation factors.
The characteristics of different types of investment vehicles. Topics include cash and equivalents, fixed income securities and valuations, equities and equity valuation, pooled investments, derivative securities, and insurance-based products.
Developing a client portfolio, portfolio theory, and suitability. Topics include types of clients; client profiling, capital market theory; portfolio management; tax considerations; retirement planning; special accounts; trading securities; and performance measurement.
The state and federal securities acts and laws, rules, and regulations regarding investment advice. Topics include state and federal securities acts; rules and regulations for investment advisers; ethical practices; and fiduciary obligations.