STUDY FOR THE SERIES 66 EXAM

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...

  In contrast to exams created and sponsored by FINRA,  the Series 66 is a test designed and created by the North American Securities Administrators Association (NASAA) to serve as the test required by various states for those seeking to become registered as investment adviser representatives. Therefore, a candidate should expect to see questions on provisions of the Model Uniform Securities Act as it relates to registration of investment advisers, their I.A. reps, exemptions from registration for certain advisers, and notice filing requirements for federal covered advisers. The Series 66 also includes questions on the definition of a broker/dealer, the requirement to keep books and records, and proper supervisory requirements for both brokers and advisers. Also, if you are a candidate for the Series 66 exam,  be prepared for questions on regulation of agents of broker/dealers, and the requirement for registration in each state in which a broker/dealer or advis...

If you are planning to take the Series 66 Exam, be careful to study carefully the topic of alternate investments. Under Section II (E) of NASAA's Study Outline for the Series 66 , here's what is listed: Characteristics, Risks, and Application of Alternative Investments 1.  exchange traded notes 2. leveraged funds 3. inverse funds 4. structured products 5. viatical/life settlements Note the presence of exchange-traded notes (ETN's). You might be unfamiliar with how these ETN's are set up, and what they entail. Above all, be sure you can enumerate the differences between ETN's and ETF's (exchange-traded funds). Bob Eder's book, Study for the Series 66 Exam, goes into detail on the differences, and covers much much more. Study for the Series 66 Exam is available at Amazon in either paperback or Kindle e-book versions. Here is a link to Bob Eder's book on Amazon.