STUDY FOR THE SERIES 66 EXAM

The Content Outline and Study Guide for the Series 66 exam indicates that the Series 66 test contains five questions on the evaluation of pooled investment vehicles. Consequently, this is a section that candidates should study before going in and sitting for the Series 66. Here's an example of what the Series 66 exam asks about—share classes. Can you differentiate between the various share classes of many mutual funds, such as Class A, B, and C? Class A indicates a front-end load. The NASD has put maximum limits on this front-end charge to 8.50 percent, but most front-end load funds abide by their own maximum of 5.75 percent. Class B shares indicate that there is a contingent deferred sales charge (CDSC) that is applied if a shareholder redeems his/her shares within a period of years, usually seven years. Class  C shares indicate that the mutual fund has an asset-based charge that is taken out and computed on a daily basis. FINRA limits this asset-based charge to 75 basis p...

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 ...