Updated: July 1, 2016. The Uniform Combined State Law Examination is called the Series 66 Exam. It was designed for candidates that need to register in certain states as investment adviser representatives or as securities agents. Topics include providing investment advice and completing securities transactions for clients. The test was developed by NASAA, and is administered by FINRA. Working through Series 66 sample questions is great for test prep. Start now with our free Series 66 practice exam. All questions have been updated for the new 2016 version of this exam.
Series 66 Practice Questions
I and II
I and III
III and IV
the liquidity to the investor
the suitability standards applied to investors
the regulatory scrutiny
all of the above are key differences
normal yield curve
positive yield curve
inverted yield curve
flat yield curve
guaranteed cash value
tax free proceeds to beneficiary upon death of the insured
money deposited into a separate account
all of the above
he may do so without prior notice
he is required to give at least 5 business days advance notification
he is required to give at least 3 business days advance notification
none of the above
all of these
all business entities operating as registered investment advisers
all broker-dealers with the exception of sole proprietorships
both A and B
neither A nor B
this is permitted.
this is permitted so long as the client is provided with full disclosure.
this is permitted only with consent from the Administrator.
this is considered a violation of state and/or federal law.
Not enough information to determine
15% return times 40% chance = 6.0%
8% return times 30% chance = 2.4%
Negative 5% return times 30% change = 1.5% loss
Add them up and you get 6.0 + 2.4 − 1.5 = 6.9%
interest rate risk
Equity indexed annuities
Whiskey warehouse receipts
All of the above
it qualifies as an exempt transaction under the USA
it is not considered a sale under the USA
it is an exempt transaction under the USA only if the collateral is an exempt security under the USA
the bank would have to be registered as a broker/dealer in order to effect this liquidation of collateral in the form of securities.
certified public accountant specializing in auditing publicly traded corporations
a public school employee
Aaa-rated GO bond
NYSE listed corporation’s convertible bond
event readiness plans
business continuity plans
data back-up and emergency contact plans
all of the above
I and III
II and IV
II and III
credit reporting agencies
evidence that such a senior designation is bona fide and approved by a principal of the firm
the designation appearing on an approved SEC or State list
the representative having taken and passed the so-called Baby Boomer credentialing course given by AARP and other similar organizations
all of the above
13D is filed when a certain level of beneficial ownership is attained; Form 4 is filed when any change in beneficial ownership takes place; Rule 144 is filed when control stock is sold by an officer of the firm — all three can impact a CEO.
Series 66 Study Material
Series 66 Exam
On the FINRA Series 66 Exam there are 110 multiple choice questions. Only 100 of these questions are scored, and the other 10 are pretest questions that may be used on future exams. You will be given 150 minutes to answer all of these questions. To get your Series 66 license you will need to get a passing test score, which is 75%.
This is a closed book exam and you will be provided only with scratch paper and a basic electronic calculator. You are not allowed to bring in any outside notes, books, or calculators. Scores are provided immediately after you finish your test. No prerequisites are needed to take this exam, but you will need to pass the Series 7 before you can register with a state.
Here are the topics covered along with the percentage of questions on each topic:
- Economic Factors and Business Information (5%)
- Investment Vehicle Characteristics (15%)
- Client Investment Recommendations and Strategies (30%)
- Laws, Regulations, and Guidelines, including Prohibition on Unethical Business Practices (50%)
For a complete outline of each topic, you can review the Exam Specifications Outline that is published by NASAA.
This is a hard test, so you will want to spend a lot of time on your Series 66 exam prep. Working through sample questions and carefully reading the explanations is a great way to learn this material. Start your test prep right now with our free Series 66 practice questions.