Series 66 Exam Cheat Sheet – Full Overview
- April 1, 2025
- Posted by: 'FINRA Exam Mastery'
- Category: Finance
📄 Series 66 Exam Cheat Sheet – Full Overview
The Series 66 exam combines elements from both the Series 63 and Series 65, making it a comprehensive challenge for professionals aiming to become investment adviser representatives and securities agents. To help you stay sharp and focused, we’ve compiled a complete Series 66 Exam Cheat Sheet — packed with critical facts, formulas, and concepts you need to know before test day.
🧠 Exam Structure
✅ Number of Questions: 100 scored + 10 unscored
✅ Passing Score: 73% (73 correct answers)
✅ Time Limit: 150 minutes
✅ Administered by: FINRA, content by NASAA
✅ Prerequisite: Series 7 license required for registration
📚 Key Exam Topics
1️⃣ Economic Factors and Business Information
- Monetary vs. fiscal policy
- Leading, lagging, and coincident indicators
- Business cycles and inflation
- Interest rate impacts on bonds and equities
2️⃣ Investment Vehicle Characteristics
- Common and preferred stocks
- Corporate, municipal, and Treasury bonds
- ETFs, mutual funds, REITs
- Derivatives: options and futures
- Insurance-based and alternative products
3️⃣ Client Investment Recommendations and Strategies
- Risk tolerance and time horizon
- Asset allocation and diversification
- Modern Portfolio Theory (MPT)
- Capital market assumptions
- Tax implications of different strategies
4️⃣ Laws, Regulations, and Guidelines
- Uniform Securities Act (USA)
- Investment Advisers Act of 1940
- Broker-dealer and investment adviser registration
- Fiduciary vs. suitability standard
- Ethical conduct and prohibited practices
- Custody, discretion, consent requirements
- Recordkeeping and reporting obligations
🔑 Must-Know Formulas & Facts
📌 Current Yield = Annual Interest / Market Price
📌 Bond Duration = Sensitivity to interest rate changes
📌 Sharpe Ratio = (Portfolio Return – Risk-Free Rate) / Standard Deviation
📌 Alpha & Beta – Measures of performance and market correlation
📌 Time-Weighted vs. Dollar-Weighted Returns – Know when each applies
📌 Capital Gains Tax – Short-term vs. long-term treatment
📌 Wash Sale Rule – 30-day rule on repurchasing securities
📌 Gift Tax Exclusion – Know the annual limits
📌 Accredited Investor Definition – Net worth and income thresholds
⚠️ Common Pitfalls
❌ Overlooking the Ethics section – it’s weighted heavily
❌ Confusing registration requirements for IAs vs. IARs
❌ Misinterpreting the difference between custody and discretion
❌ Not understanding how taxes affect returns
❌ Assuming all recommendations must be suitable (vs fiduciary standard)
🧩 Tips for Exam Day Success
✔️ Take timed practice tests regularly
✔️ Memorize your formulas early
✔️ Drill regulatory definitions with flashcards
✔️ Don’t skip ethics and scenario-based questions
✔️ Review the Uniform Securities Act in full
✔️ Identify weak areas and revisit them before test day
🚀 Ready to Master the Series 66?
Download the complete cheat sheet and get access to full-length practice exams, expert video lessons, and exam-day walkthroughs — all available at:
👉 finra-exam-mastery.com