STUDY FOR THE SERIES 66 EXAM

Up against the Series 66 Exam? Then be prepared for various economic questions such as Financial Ratios and Valuation Ratios, including debt-to-equity ratio, price to book, and price to sales, price earnings ratio compared to growth percentage, or PEG ratio. NASAA's new Series 66 Test Specifications lists these topics in Section I (A) (3 & 4). NASAA is thus telling us that these items could be on your Series 66 test. Bob Eder in his  Study for the Series 66 Exam  covers Financial and Valuation Ratios. Here is a sample of Bob Eder's treatment: "PEG Ratio                                                                              I(A)(4) "This is the ratio of the price/earnings multiple for a company's common stock as divided by the company's growth rate of earnings per share expected for the coming period. Ideally, the growth percentage of EPS should equal or exceed the P/E multiple. For example, the common shares of XYZ Corp. have a P/E multiple of 10.

If you plan on sitting for the Series 66 Exam, be aware that the Series 66 asks questions on characteristics and risks of Alternate Investments, including Structured Products. How do I know this? I know this because NASAA's Test Specifications for the Series 66 includes Section II (E) (1-5) which spells out the Alternate Investments  including Structured Products  that are likely to appear on your test. Bob Eder in his Study for the Series 66 Exam devotes Chapter 6 to a discussion of Alternate Investments including Structured Products. Here is a sample of what Bob Eder says in his book: Structured Products                                                                           II (E) (4) How do structured products come into being? Two investment bankers meet in Johnny's Bar after the market closes. They dream up new products for their firms to sell and make more underwriting profits and generate more commissions. They realize that their ingenuity, if successful, could resu