STUDY FOR THE SERIES 66 EXAM

Don't sit for the Series 66 unprepared! One of the topics covered in the Series 66 Study Outline published by NASAA includes working knowledge of the Efficient Market Theory or Hypothesis (EMH). There are three forms of EMH—strong, semi-strong, and weak. If you are a strong believer in EMH, you believe that the securities markets absorb all possible information about a stock or company, even information that has not yet been released to the public! Semi-strong believers think that market prices incorporate all past information but also information from the instant that it is released to the public. Finally, believers in a weak form of EMH think that market prices reflect only information already released. Bob Eder J.D.'s book, Study for the Series 66 Exam , includes a treatment of the Efficient Market Theory in Chapter 8, explaining the three forms of EMH. Study for the Series 66 Exam is available from Amazon in either paperback or Kindle e-book versions. Here is a

The Series 66 exam qualifies a person for state registration as an investment adviser representative, but is available only for those candidates who hold a current valid Series 7 registration, or who plan to take the Series 7 in the near future. Planning to take the Series 66 exam? Then study up on analytical methods used in investment analysis. Because you will be asked about these on the Series 66. By analytical methods, the Series 66 refers to time value of money concepts, such as internal rate of return, and net present value. Also included are descriptive statistics, such as mean, median, mode, range, standard deviation, alpha, beta, correlation and Sharpe Ratios. Also financial ratios and their uses, such as balance sheet and income statement ratios. Lastly, the Series 66 tests on valuation ratios, such as price-to-book, price earnings, and price earnings over growth, or PEG ratio. Bob Eder's book, Study for the Series 66 Exam , has several chapters on the topics

As part of your preparation for taking the Series 66 exam, study the characteristics of limited liability corporations or LLC's. Here are some facts about LLC's that you should know and study. An LLC is a true direct participation program (DPP), because it passes through all income and tax deductions to the owners or shareholders. It thus avoids double taxation, unlike a “C” or regular corporation.  An LLC also offers a corporate shield to officers, employees, and shareholders, protecting them from being sued for any damages caused by the LLC.  Imagine that you open an account for an LLC. Obtain the tax ID of the LLC; its certificate of incorporation; the business of the LLC; and its principal place of business.  Obtain a written corporate authorization; and the names of persons empowered to enter trades.  Obtain a list of share owners and their tax ID numbers. Verify the information that the LLC presents. Here is a link to NASAA's Study Outline for the Series