STUDY FOR THE SERIES 66 EXAM

Under the  SEC's Marketing Rule , 17 CFR 275.206(4)-1, an investment adviser may not make any statements or promises that in general are false or misleading, or which cannot be substantiated by the adviser. Here are some general prohibitions which the Marketing Rule prohibits:   statements that are false and misleading or untrue   statements that the adviser cannot substantiate as to the statements'   truthfulness  statements that may cause wrong implications or inferences in a material fashion  statements that fail to include material risks or drawbacks  misleading assertions or give investment advice that is unfair or unbalanced  charts or tables showing investment results that are misleading or unfair The SEC has recently cited two investment advisory firms that have made unfair and misleading claims about using A.I. in the firms' selection of investments and advisory services.   Here is what the SEC said: "According to the SEC’s order against Delphia, from 2019 to

Taking the Series 66 Exam? If yes, make sure that you are able to work problems regarding the Time Value of money, such as the net present value (NPV) and future value (FV). How do I know this? I know this because NASAA publishes Test Specifications for the Series 66 Exam , and Section I (A) (1) (1.1 - 1.3) specifically discusses concepts regarding  Time Value of Money . Bob Eder discusses discusses these concepts in his Study for the Series 66 Exam . Here is a sample problem involving NPV: James is considering purchasing a business office building. He thinks that he could sell the building for  $1 million at the end of five years. Assume interest rates will hold steady at six percent for this period and interest is paid on a yearly basis. What is the net present value (NPV) of the $1,000,000 sales proceeds? To solve for NPV of $1 million, here is the formula: NPV = Future Amount/(1.06)^5 NPV 1,000,000/1.338 NPV= $747,258 Here is the link to NASAA's Test Specifications   for the S