Series 66
study guide
Every chapter of the course summarized, with each section linked to its lesson.
Pass the first time
Try Achievable Series 66
No credit card required
This free Series 66 study guide summarizes all 4 chapters of Achievable's Series 66 course: what each covers, the points to remember, and its 156 sections in order. Read each chapter after you study it, or work through the whole guide before exam day.
Each section links to its full lesson in Achievable, with the review quizzes and full-length practice exams.
Chapter 1: Investment vehicle characteristics
71 sections
- Equity basics: Common stock is a negotiable equity security with regular-way settlement in T+1, and equity represents ownership in securities such as common stock and preferred stock.
- Market and rights: Capital appreciation occurs when stock prices rise, stockholder rights include dividends, voting, records, proportionate ownership, assets upon dissolution, and transfer ownership, and dilutive actions reduce proportionate ownership.
- Trading and dividends: Negotiable securities trade in the secondary market, redeemable securities may only be bought and sold with the issuer, and stock splits, stock dividends, and ex-dividend dates change share counts, prices, and dividend entitlement.
- Preferred and convertibles: Preferred stock is equity considered a fixed-income security with par value, dividends, yield, call features, conversion features, and anti-dilution covenants that adjust conversion ratio and conversion price when dilution actions occur.
- Restricted stock and taxes: Rule 144 covers restricted and control stock, Form 144 and Form 4 file on EDGAR, qualified institutional buyers under Rule 144A avoid holding periods and volume limitations, and dividends and capital gains have specific tax reporting rules.
- Analysis and suitability: Fundamental analysis inspects finances, technical analysis identifies market trends, and common stock suits younger, risk-tolerant investors while preferred stock suits income seekers who accept moderate risk and long-term horizons.
- Fixed income and pooled investments: Bonds, Treasury securities, municipal securities, CDs, ETFs, mutual funds, REITs, and investment companies differ by market, yield, tax treatment, liquidity, diversification, and redemption or negotiation status.
- Derivatives and alternatives: Options, futures, forwards, DPPs, hedge funds, structured products, annuities, life insurance, real estate, precious metals, and digital assets each carry distinct rights, obligations, risks, suitability, and tax consequences.
In this chapter
- Equity
- Common stockFree
- Trading & the marketFree
- Stock splits & dividendsFree
- ADRs & foreign investmentsFree
- Preferred stockFree
- Preferred stock features
- Convertible preferred stock
- Restricted & control stockFree
- Tax implicationsFree
- Fundamental analysisFree
- Technical analysisFree
- Cash dividendsFree
- Common stock suitabilityFree
- Preferred stock suitabilityFree
- Common stock
- Fixed income
- The basics
- Features
- Corporate securities
- Types of corporate securities
- Corporate convertible bonds
- US government securities
- Federal agencies
- Municipal securities
- Bank products, Eurodollars, & Eurobonds
- Yield types
- Yield relationships
- Duration, volatility, & yield curves
- Tax implications
- Discounted cash flow
- Suitability
- Pooled investments
- Derivatives
- Alternative investments
- Insurance
- Other assets
Start this chapter free
Chapter 2: Recommendations & strategies
31 sections
- Client type: Retail investors are individuals who typically lack market expertise, while institutional investors are single entities investing on behalf of a pool of capital.
- Business entities: Sole proprietorships, general partnerships, limited partnerships, LLCs, S corporations, and C corporations differ mainly by liability, formation difficulty, and whether gain and loss flow through.
- Estate and trust rules: Estates, private foundations, donor-advised funds, and trusts each have distinct tax treatment, control, and distribution rules, including revocable, irrevocable, simple, complex, testamentary, and joint trusts.
- Goals and profile: Client objectives range from preservation of capital to speculation, and suitability also depends on financial considerations and non-financial considerations.
- Portfolio strategies: Diversification reduces non-systematic risks, the Rule of 100 uses age to set stock allocation, and strategic, tactical, passive, active, and bond strategies each serve different objectives.
- Theory and tax: CAPM considers only systematic risk, modern portfolio theory emphasizes overall portfolio risk and return, EMH says information is already in prices, and tax rules differ for dividends, interest, capital gains, and income types.
- Retirement plans: Contributions must be made in cash, distributions are generally taxed as ordinary income, and rules cover ERISA, IRAs, QDROs, Social Security, Medicare, and brokerage account ownership forms.
- Trading and performance: Order types, margin rules, agency versus principal roles, settlement, and performance measures all affect recommendations, with return measures including Sharpe ratio, time-weighted return, dollar-weighted return, and total return.
In this chapter
- Type of client
- Client profile
- Strategies, styles, & techniques
- Capital market theory
- Efficient market hypothesis (EMH)
- Tax considerations
- Retirement plans
- Brokerage account types
- Special accounts
- Trading securities
- Performance measures
Study this chapter in Achievable
Achievable Series 66
Series 66 exam prep course and study materials, 95% pass rate: online textbook, 1,200+ review questions, and 26+ full-length practice exams.
Easy-to-understand online textbook
1.2k+ chapter quizzes
26+ practice exams
43+ bonus videos
Chapter 3: Economic factors & business information
4 sections
- Descriptive statistics: Mean is the average of relevant factors, median is the middle number in a set of factors, mode is the most frequently recurring factor, and range is the difference between lowest and highest factor.
- Performance measures: Alpha measures over or underperformance of a portfolio or security, beta measures volatility compared to the market (benchmark index), and the Sharpe ratio measures risk-adjusted return of security portfolio.
- Financial ratios: Fundamental analysis inspects a company's finances, while balance sheet, net worth, income (cash flow) statement, footnotes, 10-K annual report, 10-Q quarterly report, current ratio, net working capital, quick assets, and quick ratio measure financial position and liquidity.
- Time and valuation: Time value of money uses present value, future value, NPV, and IRR, while PE ratio, price to book ratio, dividend payout ratio, and EPS help judge whether an investment is overpriced or underpriced.
Study this chapter in Achievable
Chapter 4: Laws & regulations
50 sections
- Blue sky laws: The Uniform Securities Act is state securities laws and regulations, also known as blue sky laws.
- Federal securities acts: The Securities Act of 1933 governs the primary market, and the Securities Act of 1934 governs the secondary market.
- Insider penalties: Insider information is trade based on material non-public info, and both tipper and tippee are liable for treble damages and criminal penalties.
- Core definitions: A person is any natural person or legal entity, while exemptions and exclusions mean regulations do not apply for different reasons.
- Issuer and adviser roles: Issuers raise capital by offering securities, broker-dealers effect securities transactions, agents represent broker-dealers and issuers, and investment advisers provide securities advice for compensation.
- Regulatory authorities: The SEC regulates primary and secondary markets, and the state administrator enforces the USA at the state level.
- Registration rules: Broker-dealers, agents, and investment advisers use Form BD, Form U4, or Form ADV, and effective registration is typically granted on the 30th day after filing.
- Enforcement and conduct: State administrators may investigate, deny, suspend, or revoke registration, and communications, compensation, and recommendations must avoid fraud, conflicts, and unethical practices.
In this chapter
- Securities laws
- Definitions
- Registration
- Broker-dealers
- Agents
- Investment advisers
- Investment adviser representatives
- Securities
- Enforcement
- Communications
- Ethics
Study this chapter in Achievable
Series 66 exam at a glance
- Questions
- 100 multiple-choice questions
- Time
- 2 hours 30 minutes
- Passing score
- 73% (73/100)
- Exam fee
- $177
More on the Series 66 exam
- Series 66 exam prep courseAchievable's course: online textbook, review quizzes and full-length practice exams.
- Series 66 exam format, content and scoringWhat's tested, how long it takes, what it costs, and the score you need to pass.
- Free Series 66 practice examPractice questions written to match the real thing, with an explanation for every answer.
- Series 66 FAQThe questions asked most about the exam and preparing for it, answered.
- Best Series 66 exam prep coursesHow the leading providers compare on content, format and price.
- Series 66 study resourcesGuides and study advice from Achievable's instructors.
Pass the FINRA Series 66. Guaranteed.
Achievable is the best Series 66 exam prep course: effective, personalized, and convenient. With Achievable, you'll spend less time studying and pass your exam the first time, or your money back.