STUDY FOR THE SERIES 66 EXAM

NASAA publishes a Series 66 Test Specifications and Content Outline that indicates areas that a Series 66 candidate can expect to see on the test. Section IV (H) (4) of the Content Outline lists six lines of conflicts of interest, and prohibited, unethical or criminal acts or behavior. Here is a real-life example of Unethical and/or Prohibited Activity from the Securities and Exchange Commission, SEC Release 2023-33: FOR IMMEDIATE RELEASE 2023-33 Washington D.C., Feb. 16, 2023 — The Securities and Exchange Commission today charged Milan Vinod Patel, of Cumming, Georgia, for spreading more than 100 false rumors about public companies to generate more than $1 million in illicit trading profits. The SEC previously charged  Barton Ross ,  Mark Melnick ,  Anthony Salandra , and  Charles Parrino  for their roles in this scheme. According to the SEC’s complaint, Patel received rumors that he knew to be false from Ross, Salandra, or Parrino about purported market-moving events, such as corpora

Over the years there have been some securities professionals whom the SEC has accused of illegally using inside information to make gains on trading stocks. Don't allow yourself to fall into this trap. It would ruin your career in the securities business, as well as subject you to fines, civil penalties, and even criminal convictions. NASAA specifies in its Test Specifications and Content Outline for the Series 66 exam that you should expect questions about  Trading on Inside Information . See NASAA's Series 66 Test Specifications, Section IV (H) (4). Bob Eder discusses  Trading on Inside Information  in detail in his  Study for the Series 66 Exam . Here is a sample of Bob Eder's treatment of using inside information: EXAMPLE Jason, a hedge fund manager, is managing several billions of client monies. He asks for and receives confidential information about XYZ Corp.’s forthcoming earnings from Bill, a friend, who happens to be on XYZ’s board. Bill tells Jason that XYZ will u