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                                                                         ...

If you plan to take the Series 66 exam, make sure that you know, and are familiar with, various valuation ratios. What are these ratios? The price earnings ratio. The PEG ratio. The Price to Book ratio. And the Price to Sales ratio. For this posting, we discus the PEG ratio, or price/earnings ratio divided by the growth rate expected in the current year. Here's an example. The price/earnings ratio of XYZ Corp. is 12, or its P/E multiple is 12. The growth percentage expected in the current year is 14. The PEG ratio is therefore 12 divided by 14, or 0.857. This example shows that the growth percentage expected of XYZ Corp. is greater than its P/E ratio. Thus, an investor in XYZ is getting a good value because XYZ's growth rate exceeds its price-to-earnings, or the P/E ratio is less than the growth rate.  Therefore, ideally no investor should buy a stock unless its growth percentage exceeds its P/E ratio. Our book  Study for the Series 66 Exam  covers the various valuation r...

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 ...