There is a lot of confusion around how to study for the Series 66 exam. Many are surprised to find out how difficult the Series 66 can be. In today’s post we discuss how to study for this unexpectedly hard exam.
How to Study for the Series 66: Flashcards?
When it comes to other licensing exams for financial professionals, having a solid set of flashcards can help.
There are many definitions, rules, regulations, and formulas. All of these require basic memory work. Flash cards are usually part of that equation. Memorize what you can, then eventually recall what you can at the exam.
The Series 66 difficulty lies in the fact that many of the hardest problems are based off of potentially dozens of scenarios. Many actually reference the same rules, laws, or regulations.
As a result, students not only have to know the relevant laws and regulations. They also have to know the exceptions. As many of you know, there are no shortages of exceptions that apply across scenarios.
Practice…A Lot
What is different about the Series 66 exam, and the Series 7 exam are the types of questions.
Many of the Series 7 exam’s more complicated questions require a mechanical process. For instance, if you know step one, two, and three of how to answer the maximum gain or loss for an Options Spreads questions, then you’re in the clear.
When it comes to the Series 66 however, if you understand what an exempt transaction is, you have only barely scratched the surface.
Doing dozens of questions related to exempt transactions, will help you understand the concept and it’s many a variations. There are no flashcards that you can really make for this (easily). Your best bet is to really understand the different situations under which a transaction is exempt, which requires practice.
Flashcards Still Help
Despite the above, we are not hating on flashcards. Flashcards still help.
In fact, we highly recommend flashcards for certain topics of the Series 66. For instance, you must know the capital asset pricing model (CAPM) formula by heart. In addition, the Sharpe Ratio is fairly straightforward too. These, and certain rules without much ambiguity can be memorized with flashcards. On the other hand, passing the whole exam will require you understand things beyond flashcards.
Try your best to create flashcards where it’s appropriate. Where it’s not that easy, like with exempt transactions, and exempt securities, practice makes perfect! If you need any help, feel free to contact us. Good luck!