Series 66 Exam gaps in knowledge are fairly consistent for most of our students. In today’s post, we highlight where you should spend a little extra time. We also recommend a study strategy that helps with this difficult exam.
Series 66 Exam Gaps: Rules and Regulations
This exam is administered by the North American Securities Administrators Association (NASAA). You can think of each state as having an administrator similar to how the United States as a whole has an SEC.
The administrator of a state essentially regulates securities law in that state. Given that this exam is administered by those that regulate, you would be right to think that the majority of this exam involves understanding rules and regulations.
Where we recommend that you brush up is in some of the more heavily weighted rules and regulation sections of this exam.
For instance, make sure to solidify your understanding of the difference between a broker dealer and an investment advisor. And then, make sure you can distinguish between an agent versus an investment advisor representative.
Beyond this, you’ll need to keep track of the registration process for securities. And then, also know what securities are exempt from regulations at the state level, and what transactions are also exempt.
All of these, plus some other regulations at the state level, are necessary to put a serious dent in achieving a passing score. These sections on rules and regulations combined make up close to 50% of the exam.
Beyond the Law
The other most common sections where we see students falter are a little more technical.
First, futures and forwards contracts are a common issue for many. That said, these contracts are much more straightforward than they seem. Options such as calls and puts are much more confusing. With a little time, or with a little help, these are understandable. One quick tip: Buying a futures contract is bullish and selling is bearish.
Next, insurance based products, capital market theory, portfolio management strategies, and tax considerations are all difficult sections for many people as well.
Take each individually. These sections may not make or break your exam. However, if all of them end up causing an issue, they can put a serious dent in your scores.
Overall, this is a doable, though, difficult exam. Make sure to focus on every single word in the questions to understand context. In many cases, you want to think like a lawyer for this exam. Each word has a very specific meaning and purpose in a question. If you need any help, feel free to reach out or contact our Series 66 tutor! Good luck!