Economics and business
- Fed tools: open market operations, discount rate, reserve requirements
- Real return ≈ nominal return − inflation
- Beta measures market risk; standard deviation measures total risk
Investment vehicles
- Bond prices and yields move in opposite directions
- Variable annuities are securities; fixed annuities aren't
- Options buyers' maximum loss is the premium
Recommendations and strategies
- Know the client: objectives, risk tolerance, horizon, liquidity, taxes
- Diversify with low-correlation assets; rebalance to targets
- Tax-equivalent yield = muni yield ÷ (1 − tax rate)
Laws and ethics
- Agents, BDs, IAs and IARs register with the Administrator unless excluded or exempt
- Advisers owe a fiduciary duty; disclose conflicts and get consent for principal trades
- No guarantees, unauthorized trades, or borrowing from clients
Test yourself on Series 66
Reading a summary is the easy part. Take the free 10-question diagnostic to see which of these domains you actually have, then drill the rest.