STUDY FOR THE SERIES 66 EXAM

The Series 66 exam asks questions about "descriptive statistics." This term includes Alpha, Beta, Sharpe Ratios, as well as Standard Deviation. Before sitting for the Series 66, make sure that you are familiar with, and know how to calculate, these ratios. Bob Eder's Study for the Series 66 Exam devotes its first chapter to economic analysis, including a discussion with example and sample question on Standard Deviation. Here is a link to NASAA's Test Specifications for the Series 66 exam .  See  I (A) (2) of NASAA's  Series 66 Test Specifications  for inclusion of the best execution rule. Study for the Series 66 Exam  is available from Amazon in either paperback or Kindle e-book versions.  Here is a link to Bob Eder's Series 66 book on Amazon . Bob Eder received his Juris Doctor (J.D.) degree from the University of Utah, Quinney College of Law in 2001.

Taking the Series 66 exam? Then make sure that you are familiar with the "best execution rule." Lets suppose that there are three market-makers in GKLM common shares.  Dealer A quotes GKLM at 30.55 bid, 30.93 offer. Dealer B quotes 30.61-30.98. Dealer C quotes 30.45-30.89. All three quotes are firm for up to 1,000 shares. Widow Jones wishes to sell 500 shares of GKLM and puts in her order with her brokerage firm, DEF Co. According to the best execution rule, DEF Co. should send Widow Jones' order to Dealer B. Why? Dealer B's bid is the highest bid for GKLM, and Widow Jones wants the highest dealer bid for her sale of 500 GKLM. Our book  Study for the Series 66 Exam  covers the Best Execution Rule on page 156, including practice questions and examples. Here is a link to NASAA's Test Specifications for the Series 66 exam .  See  III (J) (3) of the  Series 66 Test Specifications  for inclusion of the best execution rule. Study for the Series 66 Exam ...

Announcing our thoroughly revised Study for the Series 66 Exam, effective July 31, 2021 . We have incorporated new questions into our study text for the Series 66 exam. We have followed the NASAA Test Outline in making these changes so that our readers are not forced to study materials that are not covered or tested by the Series 66 exam. Additionally we have reviewed each of our practice questions to make sure that each incorporate materials that the Series 66 covers, and that each question accurately lines up with the answers and explanations found at the end of each of our practice exams. Here is a link to NASAA's  Test Specifications  for the Series 66 exam .  Study for the Series 66 Exam  is available from Amazon in either paperback or Kindle e-book versions.  Here is a link to Bob Eder's Series 66 book on Amazon .  Bob Eder's book is available from Amazon in both paperback and Kindle e-book versions.  Bob Eder received his Juris Doctor (J.D.) de...

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...

As a candidate for the Series 66 exam, can you answer the following true/false questions?  Indicate which of the following statements pertaining to the definition of an investment adviser are true and which are false. 1.    Advice about market trends is not advice about securities. 2.    Advice about the selection and retention of other advisers is not advice about securities. 3.    Advice about the advantages of investing in securities versus other types of investments (e.g., coins or real estate) is not advice about securities. 4.    Asset allocation advice is not advice about securities. All of the statements should be marked false.  According to the SEC: Advice about market trends is advice about securities. Advice about the selection and retention of other advisers is advice about securities. Advice about the advantages of investing in securities is advice about securities. Advice about allocation of assets is advice about securiti...

Are you planning to sit for the Series 66?  This is the exam that is required by most states for those wishing to register as investment adviser representatives, provided that the applicant has a valid Series 7 registration (or plans to acquire one in the near future). If so, be aware that the   Series 66 Test Specifications   published by NASAA includes topics such as time-weighted return and dollar-weighted return. Therefore, do not go into the Series 66 exam unless you are adequately prepared how to apply the formulas for the above returns. For example, dollar-weighted return takes into account deposits of cash and withdrawals during the period, i.e., usually for the calendar year. It is  not  correct to simply take the gain (or loss) for the year and divide it by the beginning balance, as of January 1. Dollar-weighted return, a more correct but complex approach, makes adjustment for any withdrawals and for any deposits.  If, for example, a deposit is ma...

Study for the Series 66 Exam  by Bob Eder J.D. includes discussion of Regulation Best Interest, or Regulation BI, which now applies to dealing with retail customers.  Regulation Best Interest now requires every registered representative to view his/her recommendations through the prism of whether such recommendation is in the retail customer's best interests. Regulation BI went into effect on June 30, 2020. Prior to this date, a representative was required merely to assure that his/her recommendations met the test of suitability.  Furthermore, there was no requirement to present a retail customer with conflicts of interest in writing. Regulation BI now requires this disclosure. Regulation BI applies to recommendations also on which type of accounts to recommend to retail customers, not just to securities recommendations. This means before a representative puts a retail customer into a mutual fund account, or into a margin account, or into a wrap fee account, the represent...