Studying the core Series 66 topics is a good place to start to ensure that your knowledge blooms for this challenging NASAA exam. There are a few areas of the textbook that you should pay particular attention to when starting, and progressing through your studying. Below we look at these areas.
Core Series 66 Topics: Laws and Regs
By far one of the most important sections of this exam is the one on laws and regulations. According to the North American Securities Administrators Association’s (NASAA) website, this section is 45% of the exam. In this section you will want to have a few concepts solid.
For example:
- An exempt security versus an exempt transaction.
- The difference between a state registered advisor, and a federally covered one.
- Various ways to register a security at the state level (e.g., Qualification, Notification, etc.).
- The different Form ADVs.
- Regulations related to broker-dealers.
- Rules related to issuers.
These topics are a really good start on the material. Coupled with the section that covers Client/Customer Investment Recommendations and Strategies (another 30% of the exam), then you will have 75% of the exam covered. In other words, put 75% of your attention here 🙂
Analytical Questions Will Help, But Are Less Core
While we never advocate taking any portion of the material lightly, make sure to study smart.
To that extent, you want to be much more certain of your ability when it comes to the above sections than the analytical portion of the exam. The analytical portion only makes up the remaining 25% of questions. This section includes:
- Investment Vehicle Characteristics (20%)
- Economic Factors and Business Information (5%)
The larger section (Investment Vehicle Characteristics) will be a review of some of the Series 7 Exam information (E.g., Options, Technical Analysis, Fundamental Analysis, etc). However, most of the content from the Economic Factors and Business Information section – such as NPV, IRR, Sharpe Ratios, etc. – may be newer to anyone taking the Series 66 Exam following the Series 7.
Overall, at Professional Exam Tutoring we recommend that you be sure to study both sections, but a disproportionate amount of time should definitely go toward the sections around laws and regulations, and client information. For more clarity on those subjects, reach out to us if you need some help! Good luck!