\nSeries 65 Study Guide<\/a>
\nSeries 65 Flashcards<\/a>\n<\/div>\n
<\/span>Series 65 Exam Outline<\/h2>\nThe Series 65 exam contains 140 questions, ten of which are unscored, and you are given a time limit of 3 hours. The unscored questions, which are called “pretest” questions, are used by the exam administrators to evaluate questions for future versions of the exam. The pretest questions are unmarked and mixed amongst the scored questions, so you will not know which are the pretest questions.<\/p>\n
The exam is split into four sections:<\/p>\n
<\/span>I. Economic Factors and Business Information (15%)<\/h3>\nThe 20 scored questions in this section test your knowledge of various aspects of business and economics.<\/p>\n\nBasic Economic Concepts (6 questions)<\/summary>\n\n- Inflation and deflation<\/li>\n
- Monetary and fiscal policies<\/li>\n
- Economic indicators<\/li>\n
- Business cycles<\/li>\n
- Geopolitical and global factors<\/li>\n
- Interest rates<\/li>\n
- Yield curves<\/li>\n
- Credit spreads<\/li>\n<\/ul>\n<\/details>\n\n
Financial Reporting (4 questions)<\/summary>\n\n- Financial reporting<\/li>\n
- Fundamentals of accounting<\/li>\n<\/ul>\n<\/details>\n\n
Analytical Methods (4 questions)<\/summary>\n\n- Descriptive statistics<\/li>\n
- Valuation ratios<\/li>\n
- Time value of money concepts<\/li>\n
- Financial ratios<\/li>\n<\/ul>\n<\/details>\n\n
Types of Risk (6 questions)<\/summary>\n\n- Opportunity cost<\/li>\n
- Systematic risks<\/li>\n
- Unsystematic risks<\/li>\n
- Capital structure including liquidation priority<\/li>\n<\/ul>\n<\/details>\n
<\/span>II. Investment Vehicle Characteristics (25%)<\/h3>\nThe 32 scored questions in this section test your knowledge of various characteristics of investments.<\/p>\n\nCash and Cash Equivalents (1 question)<\/summary>\n\n- Insured deposits and money market instruments<\/li>\n<\/ul>\n<\/details>\n\n
Fixed Income Securities (3 questions)<\/summary>\n\n- Corporate bonds<\/li>\n
- Foreign bonds<\/li>\n
- Asset-backed securities<\/li>\n
- US government and agency securities<\/li>\n
- Municipal bonds<\/li>\n<\/ul>\n<\/details>\n\n
Valuation Factors and Characteristics of Fixed Income Securities (3 questions)<\/summary>\n\n- Tax implications<\/li>\n
- Liquidation preference<\/li>\n
- Duration<\/li>\n
- Bond ratings<\/li>\n
- Coupon vs. zero coupon<\/li>\n
- Yield-to-call<\/li>\n
- Credit spread<\/li>\n
- Conversion valuation<\/li>\n
- Discounted cash flow<\/li>\n<\/ul>\n<\/details>\n\n
Types of Equity Securities (2 questions)<\/summary>\n\n- Employee stock options<\/li>\n
- Restricted stock<\/li>\n
- Common stock<\/li>\n
- Preferred and convertible preferred stock<\/li>\n<\/ul>\n<\/details>\n\n
Characteristics of Equity Securities (3 questions)<\/summary>\n\n- Dividends<\/li>\n
- Shareholder rights<\/li>\n
- Resale restrictions<\/li>\n<\/ul>\n<\/details>\n\n
Determining the Value of Equity Securities (3 questions)<\/summary>\n\n- Fundamental analysis<\/li>\n
- Discounted cash flow<\/li>\n
- Technical analysis<\/li>\n
- Dividend discount<\/li>\n<\/ul>\n<\/details>\n\n
Types of Pooled Investments (3 questions)<\/summary>\n\n- Unit investment trusts<\/li>\n
- Real estate investment trusts<\/li>\n
- Private funds<\/li>\n
- Mutual funds<\/li>\n
- Exchange-traded funds<\/li>\n<\/ul>\n<\/details>\n\n
Characteristics of Pooled Investments (3 questions)<\/summary>\n\n- Fee structures and other costs<\/li>\n
- Liquidity<\/li>\n
- Benefits and risks<\/li>\n
- Share classes<\/li>\n
- Tax implications<\/li>\n
- Pricing<\/li>\n<\/ul>\n<\/details>\n\n
Types of Derivative Securities (2 questions)<\/summary>\n\n- Futures<\/li>\n
- Options<\/li>\n
- Warrants<\/li>\n
- Forward contracts<\/li>\n<\/ul>\n<\/details>\n\n
Characteristics of Derivative Securities (3 questions)<\/summary>\n\n- Costs<\/li>\n
- Benefits<\/li>\n
- Risks<\/li>\n<\/ul>\n<\/details>\n\n
Alternative Investments (2 questions)<\/summary>\n\n- Leveraged funds<\/li>\n
- Viatical\/life settlements<\/li>\n
- Limited partnerships<\/li>\n
- Exchange-traded notes<\/li>\n
- Structured products<\/li>\n
- Inverse funds<\/li>\n<\/ul>\n<\/details>\n\n
Insurance-Based Products (2 questions)<\/summary>\n\n- Life insurance<\/li>\n
- Annuities<\/li>\n<\/ul>\n<\/details>\n\n
Other Assets (2 questions)<\/summary>\n\n- Commodities<\/li>\n
- Precious metals<\/li>\n
- Investment real estate<\/li>\n<\/ul>\n<\/details>\n
<\/span>III. Client Investment Recommendations and Strategies (30%)<\/h3>\nThe 39 scored questions in this section test your knowledge of various types of clients and what investment recommendations you should make.<\/p>\n\nType of Client (3 questions)<\/summary>\n\n- Trusts and estates<\/li>\n
- Individual<\/li>\n
- Natural person(s)<\/li>\n
- Sole proprietorship<\/li>\n
- Foundations and charities<\/li>\n
- Business entities<\/li>\n<\/ul>\n<\/details>\n\n
Client Profile (7 questions)<\/summary>\n\n- Risk tolerance<\/li>\n
- Financial goals and objectives<\/li>\n
- Time horizon<\/li>\n
- Client data gathering<\/li>\n
- Current and future financial situation<\/li>\n
- Nonfinancial investment considerations<\/li>\n<\/ul>\n<\/details>\n\n
Capital Market Theory (3 questions)<\/summary>\n\n- Investment theories and hypotheses<\/li>\n
- Investment models<\/li>\n<\/ul>\n<\/details>\n\n
Portfolio Management Strategies, Styles, and Techniques (6 questions)<\/summary>\n\n- Tactical asset allocation<\/li>\n
- Capital appreciation<\/li>\n
- Active and passive styles<\/li>\n
- Diversification<\/li>\n
- Dollar-cost averaging<\/li>\n
- Volatility management, sector rotation<\/li>\n
- Puts and calls<\/li>\n<\/ul>\n<\/details>\n\n
Tax Considerations (2 questions)<\/summary>\n\n- Individual income tax fundamentals<\/li>\n
- Corporate, estate, and trust income tax fundamentals<\/li>\n
- Gift tax fundamentals<\/li>\n<\/ul>\n<\/details>\n\n
Retirement Plans (3 questions)<\/summary>\n\n- Qualified retirement plans<\/li>\n
- Nonqualified retirement plans<\/li>\n
- Individual Retirement Accounts<\/li>\n<\/ul>\n<\/details>\n\n
ERISA Issues (2 questions)<\/summary>\n\n- Investment policy statement<\/li>\n
- Fiduciary issues<\/li>\n
- Prohibited transactions<\/li>\n<\/ul>\n<\/details>\n\n
Special Account Types (2 questions)<\/summary>\n\n- UTMA\/UGMA<\/li>\n
- Education-related<\/li>\n
- Health-savings<\/li>\n<\/ul>\n<\/details>\n\n
Ownership and Estate Planning Techniques (3 questions)<\/summary>\n\n- Beneficiary designation<\/li>\n
- Qualified domestic relations order<\/li>\n
- Pay-on-death<\/li>\n
- Transfer-on-death<\/li>\n
- Trusts and wills<\/li>\n
- Methods of ownership transfer<\/li>\n<\/ul>\n<\/details>\n\n
Trading Securities (4 questions)<\/summary>\n\n- Role of broker-dealers, custodians, exchanges, and market makers<\/li>\n
- Terminology<\/li>\n
- Costs of trading securities<\/li>\n<\/ul>\n<\/details>\n\n
Portfolio Performance Measures (4 questions)<\/summary>\n\n- Current yield<\/li>\n
- Returns<\/li>\n
- Relevant benchmarks<\/li>\n<\/ul>\n<\/details>\n
<\/span>IV. Laws, Regulations, and Guidelines Including Prohibition on Unethical Business Practices (30%)<\/h3>\nThe 39 scored questions in this section test your knowledge of various laws and regulations, with some specific focus on prohibition and unethical business practices.<\/p>\n\nRegulation of Investment Advisers (6 questions)<\/summary>\n\n- Registration and post-registration<\/li>\n
- Investment adviser representative supervision<\/li>\n
- Definitions of an investment adviser<\/li>\n
- Notice filing requirements<\/li>\n
- Exemptions for exempt reporting advisers and private fund advisors<\/li>\n<\/ul>\n<\/details>\n\n
Regulation of Investment Adviser Representatives (4 questions)<\/summary>\n\n- Registration and post-registration<\/li>\n
- Definition of an investment adviser representative<\/li>\n<\/ul>\n<\/details>\n\n
Regulation of Broker-Dealers (2 questions)<\/summary>\n\n- Definition of a broker-dealer<\/li>\n<\/ul>\n<\/details>\n\n
Regulation of Agents of Broker-Dealers (2 questions)<\/summary>\n\n- Definition of a broker-dealer agent<\/li>\n<\/ul>\n<\/details>\n\n
Regulation of Securities and Issuers (2 questions)<\/summary>\n\n- Registration and post-registration<\/li>\n
- State antifraud authority<\/li>\n
- Definition of securities and issuers<\/li>\n
- Exemptions<\/li>\n<\/ul>\n<\/details>\n\n
Remedies and Administrative Provisions (2 questions)<\/summary>\n\n- Authority of state securities administrator<\/li>\n
- Administrative actions<\/li>\n
- Other penalties and liabilities<\/li>\n<\/ul>\n<\/details>\n\n
Communication with Clients and Prospects (10 questions)<\/summary>\n\n- Performance guarantees<\/li>\n
- Correspondence and advertising<\/li>\n
- Disclosures<\/li>\n
- Client contracts<\/li>\n
- Unlawful representations concerning registrations<\/li>\n<\/ul>\n<\/details>\n\n
Ethical Practices and Fiduciary Obligations (11 questions)<\/summary>\n\n- Custody conditions and obligations<\/li>\n
- Compensation<\/li>\n
- Cyber security, privacy, and data protection<\/li>\n
- Client funds and securities<\/li>\n
- Business continuity plan<\/li>\n
- Conflicts of interest<\/li>\n
- Criminal activities<\/li>\n<\/ul>\n<\/details>\n
![\"exam](\"https:\/\/www.mometrix.com\/academy\/wp-content\/uploads\/2022\/12\/Series-65-Outline-01.svg\")
<\/a><\/p>\n\n\t\t\t\n\t\t\t\t\n\t\t\t\t\tCheck Out Mometrix's Series 65 Study Guide<\/p>\n\t\t\t\t\t
Get practice questions, video tutorials, and detailed study lessons<\/p>\n\t\t\t\t\tGet Your Study Guide<\/a>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t![\"](\"https:\/\/www.mometrix.com\/academy\/wp-content\/uploads\/2021\/06\/series65.jpg\")
\n\t\t\t\t<\/a>\n\t\t\t<\/div>\n<\/span>Registration<\/h2>\nIf you are employed or associated with a FINRA member firm, the firm can register you for the exam via a U4 form. If you are not employed or associated with a FINRA member firm, you can open an enrollment window via FINRA\u2019s Test Enrollment Services System (TESS). The exam fee is $187 regardless of which method of registration you choose.<\/p>\n
Once your registration request is processed, you will be notified and given a 120-day window to take the exam.<\/p>\n
<\/span>Series 65 Online Prep Course<\/h2>\nIf you want to be fully prepared, Mometrix offers an online Series 65 prep course<\/strong> designed to give you everything you need to succeed!<\/p>\nHere’s what you’ll find in the Series 65 course:<\/p>\n
The 20 scored questions in this section test your knowledge of various aspects of business and economics.<\/p>\n The 32 scored questions in this section test your knowledge of various characteristics of investments.<\/p>\n The 39 scored questions in this section test your knowledge of various types of clients and what investment recommendations you should make.<\/p>\n The 39 scored questions in this section test your knowledge of various laws and regulations, with some specific focus on prohibition and unethical business practices.<\/p>\n Check Out Mometrix's Series 65 Study Guide<\/p>\n\t\t\t\t\t Get practice questions, video tutorials, and detailed study lessons<\/p>\n\t\t\t\t\tGet Your Study Guide<\/a>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t If you are employed or associated with a FINRA member firm, the firm can register you for the exam via a U4 form. If you are not employed or associated with a FINRA member firm, you can open an enrollment window via FINRA\u2019s Test Enrollment Services System (TESS). The exam fee is $187 regardless of which method of registration you choose.<\/p>\n Once your registration request is processed, you will be notified and given a 120-day window to take the exam.<\/p>\n If you want to be fully prepared, Mometrix offers an online Series 65 prep course<\/strong> designed to give you everything you need to succeed!<\/p>\n Here’s what you’ll find in the Series 65 course:<\/p>\nBasic Economic Concepts (6 questions)<\/summary>\n
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Financial Reporting (4 questions)<\/summary>\n
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Analytical Methods (4 questions)<\/summary>\n
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Types of Risk (6 questions)<\/summary>\n
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<\/span>II. Investment Vehicle Characteristics (25%)<\/h3>\n
Cash and Cash Equivalents (1 question)<\/summary>\n
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Fixed Income Securities (3 questions)<\/summary>\n
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Valuation Factors and Characteristics of Fixed Income Securities (3 questions)<\/summary>\n
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Types of Equity Securities (2 questions)<\/summary>\n
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Characteristics of Equity Securities (3 questions)<\/summary>\n
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Determining the Value of Equity Securities (3 questions)<\/summary>\n
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Types of Pooled Investments (3 questions)<\/summary>\n
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Characteristics of Pooled Investments (3 questions)<\/summary>\n
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Types of Derivative Securities (2 questions)<\/summary>\n
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Characteristics of Derivative Securities (3 questions)<\/summary>\n
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Alternative Investments (2 questions)<\/summary>\n
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Insurance-Based Products (2 questions)<\/summary>\n
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Other Assets (2 questions)<\/summary>\n
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<\/span>III. Client Investment Recommendations and Strategies (30%)<\/h3>\n
Type of Client (3 questions)<\/summary>\n
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Client Profile (7 questions)<\/summary>\n
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Capital Market Theory (3 questions)<\/summary>\n
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Portfolio Management Strategies, Styles, and Techniques (6 questions)<\/summary>\n
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Tax Considerations (2 questions)<\/summary>\n
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Retirement Plans (3 questions)<\/summary>\n
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ERISA Issues (2 questions)<\/summary>\n
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Special Account Types (2 questions)<\/summary>\n
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Ownership and Estate Planning Techniques (3 questions)<\/summary>\n
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Trading Securities (4 questions)<\/summary>\n
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Portfolio Performance Measures (4 questions)<\/summary>\n
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<\/span>IV. Laws, Regulations, and Guidelines Including Prohibition on Unethical Business Practices (30%)<\/h3>\n
Regulation of Investment Advisers (6 questions)<\/summary>\n
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Regulation of Investment Adviser Representatives (4 questions)<\/summary>\n
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Regulation of Broker-Dealers (2 questions)<\/summary>\n
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Regulation of Agents of Broker-Dealers (2 questions)<\/summary>\n
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Regulation of Securities and Issuers (2 questions)<\/summary>\n
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Remedies and Administrative Provisions (2 questions)<\/summary>\n
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Communication with Clients and Prospects (10 questions)<\/summary>\n
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Ethical Practices and Fiduciary Obligations (11 questions)<\/summary>\n
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<\/a><\/p>\n\n\t\t\t\n\t\t\t\t<\/a>\n\t\t\t<\/div>\n<\/span>Registration<\/h2>\n
<\/span>Series 65 Online Prep Course<\/h2>\n