TAKING THE SERIES 66 EXAM? TAKE THIS QUIZ ON WHO IS AN INVESTMENT ADVISER

As a candidate for the Series 66 exam, can you answer the following true/false questions? 

Indicate which of the following statements pertaining to the definition of an investment adviser are true and which are false.

1.    Advice about market trends is not advice about securities.

2.    Advice about the selection and retention of other advisers is not advice about securities.

3.    Advice about the advantages of investing in securities versus other types of investments (e.g., coins or real estate) is not advice about securities.

4.    Asset allocation advice is not advice about securities.

All of the statements should be marked false. 

According to the SEC:

Advice about market trends is advice about securities.

Advice about the selection and retention of other advisers is advice about securities.

Advice about the advantages of investing in securities is advice about securities.

Advice about allocation of assets is advice about securities.

Our book Study for the Series 66 Exam goes into depth on how to answer questions relating to the SEC definition of an investment adviser.

Here is a link to NASAA's Content Outline for the Series 66 exam. See IV A (1-5) and IV B (1-2) of the Series 66 Test Specifications for discussion of investment advisers and their representatives.

Study for the Series 66 Exam is available from Amazon in either paperback or Kindle e-book versions. Here is a link to Bob Eder's Series 66 book on Amazon. Bob Eder's book is available from Amazon in both paperback and Kindle e-book versions. 

Bob Eder received his Juris Doctor (J.D.) degree from the University of Utah, Quinney College of Law in 2001.

Comments

Post a Comment

Popular posts from this blog

SERIES 66 TESTS YOUR KNOWLEDGE OF ANALYTICAL METHODS IN INVESTMENT ANALYSIS

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
Read more

SERIES 66 TEST SPECIFICATIONS INCLUDE STANDARD DEVIATION SO MAKE SURE THAT YOU KNOW HOW TO CALCULATE

The Series 66 exam asks questions about "descriptive statistics." This term includes Alpha, Beta, Sharpe Ratios, as well as Standard Deviation. Before sitting for the Series 66, make sure that you are familiar with, and know how to calculate, these ratios. Bob Eder's Study for the Series 66 Exam devotes its first chapter to economic analysis, including a discussion with example and sample question on Standard Deviation. Here is a link to NASAA's Test Specifications for the Series 66 exam .  See  I (A) (2) of NASAA's  Series 66 Test Specifications  for inclusion of the best execution rule. Study for the Series 66 Exam  is available from Amazon in either paperback or Kindle e-book versions.  Here is a link to Bob Eder's Series 66 book on Amazon . Bob Eder received his Juris Doctor (J.D.) degree from the University of Utah, Quinney College of Law in 2001.
Read more

KNOW FINRA RULE 3210 FOR THE SERIES 66 EXAM ABOUT OPENING OUTSIDE ACCOUNTS

    Planning to take the Series 66 Exam? Then become familiar with FINRA Rule 3210 on Opening Outside Accounts. Why? Because NASAA Series 66 Test Specifications includes this topic in Section IV (H) (4), thus signaling that there can be questions on the test about this rule. Here is the text of Rule 3210: FINRA RULE 3210 Securities Accounts at Other Investment Advisers, Broker/Dealers or Financial Institutions a) No person associated with a member ("employer member") shall, without the prior written consent of the member, open or otherwise establish at a member other than the employer member ("executing member"), or at any other financial institution, any account in which securities transactions can be effected and in which the associated person has a beneficial interest. (b) Any associated person, prior to opening or otherwise establishing an account subject to this Rule, shall notify in writing the executing member, or other financial institution, of his or her as
Read more