How to Study for the Series 65

1. Read the official exam guide

   Official Series 65 exam guide (NASAA (North American Securities Administrators Association) — content owner; administered by FINRA) ↗

2. Know what the exam covers

   • Economic Factors and Business Information15%

     • Basic Economic Concepts

       Covers business cycles, monetary and fiscal policy, global/currency and geopolitical factors, inflation and deflation, interest rates and yield curves, and core economic indicators like GDP, employment data, trade deficit, and CPI.

     • Financial Reporting

       Covers reading core financial statements (income statement, balance sheet, cash flow statement), auditor opinions, SEC filings and annual reports, and the distinction between audited/unaudited and cash/accrual accounting.

     • Analytical Methods

       Covers time-value-of-money math (IRR, NPV, future value), descriptive statistics (mean, standard deviation, alpha/beta/Sharpe, correlation), liquidity/leverage ratios, and valuation multiples like P/E and price-to-book.

     • Types of Risk

       Covers systematic vs. unsystematic risk categories, opportunity cost, and capital structure/liquidation priority across debt, preferred, and common equity.

   • Investment Vehicle Characteristics25%

     • Cash and Cash Equivalents

       Insured deposit products (demand deposits, CDs) and money-market instruments such as commercial paper and Treasury bills.

     • Types of Fixed Income Securities

       Government, agency, corporate, municipal (GO, revenue, insured), and foreign-issued debt, including their tax treatment.

     • Fixed Income Characteristics and Valuation

       Bond features (ratings, call provisions, duration, pricing at par/premium/discount) and valuation math (yield to call/maturity, coupon, discounted cash flow, credit spread).

     • Types and Characteristics of Equity Securities

       Common stock (domestic, foreign, ADRs), preferred variants, shareholder rights (voting, preemptive, liquidation), restricted stock, dividends, and employee stock options (ISO vs. NQSO).

     • Equity Valuation Methods

       Technical analysis, fundamental analysis, dividend discount, and discounted cash flow approaches to valuing equities.

     • Equity Public Offerings

       IPOs, secondary offerings, and SPACs/blind pools/blank-check companies.

     • Types and Characteristics of Pooled Investments

       Mutual funds (open/closed-end), private funds (hedge, PE, VC), UITs, ETFs, and REITs, along with share classes, liquidity, fees, NAV/premium-discount pricing, and comparison factors like benchmarks and manager tenure.

     • Derivative Securities

       Basic definitions and characteristics of options, warrants, and futures, including their costs, benefits, and risks.

     • Alternative Investments and Other Assets

       Limited partnerships, exchange-traded notes, leveraged/inverse funds, structured products, commodities/precious metals, and digital assets (definitions, characteristics, and risks).

     • Insurance-Based Products

       Annuity types (variable, fixed, indexed) and life insurance types (whole, term, universal, variable).

   • Client Investment Recommendations and Strategies30%

     • Type of Client

       Individuals and business entities (partnerships, LLCs, C/S-corps), trusts and estates, and foundations/charities as distinct client categories.

     • Client Profile

       Gathering and using client data — goals, cash flow/balance sheet, existing holdings, tax situation, risk tolerance, nonfinancial factors (ESG, life stage, behavioral finance), and time horizon — to inform suitability.

     • Capital Market Theory

       Core portfolio theories including CAPM, Modern Portfolio Theory, and the Efficient Market Hypothesis.

     • Portfolio Management Strategies, Styles and Techniques

       Strategic vs. tactical allocation, style categories (active/passive, growth/value/income), and techniques like diversification, sector rotation, dollar-cost averaging, leveraging, and volatility management.

     • Tax Considerations

       Individual and entity-level income tax fundamentals (capital gains, qualified dividends, AMT, RMDs) plus estate and gift tax basics such as the unified credit and portability.

     • Retirement Plans

       IRAs (traditional/Roth), solo 401(k)s, and qualified/nonqualified employer plans (401(k), 403(b), 457, SIMPLE, SEP).

     • ERISA Issues

       Fiduciary duties under ERISA, qualified default investment alternatives, investment policy statements, and prohibited transactions.

     • Special Types of Accounts

       Education-focused accounts (529s, Coverdell), UTMA/UGMA custodial accounts, and HSAs.

     • Ownership and Estate Planning Techniques

       Forms of asset titling (JTWROS, tenancy in common, TBE), TOD/POD designations, beneficiary rules, trusts/wills basics, QDROs, and donor-advised funds.

     • Trading Securities

       Order types and mechanics (market/limit/stop, short sales, margin), the roles of broker-dealers/market makers/exchanges, and trading costs (commissions, markups, spreads, best execution).

     • Portfolio Performance Measures

       Return calculation methods (risk-adjusted, time- vs. dollar-weighted, IRR, after-tax) and use of relevant benchmarks.

   • Laws, Regulations, and Guidelines Including Prohibition on Unethical Business Practices30%

     • Regulation of Investment Advisers

       Definitions and registration/notice-filing rules for state-registered and federal-covered advisers, including books-and-records and IAR supervision obligations.

     • Regulation of Investment Adviser Representatives

       IAR definition, registration and post-registration duties, and continuing education/reportable-event requirements.

     • Regulation of Broker-Dealers and Their Agents

       Definitions and regulatory treatment of broker-dealers and their registered agents.

     • Regulation of Securities and Issuers

       Securities registration, exemptions, issuer definitions and agent/finder registration, plus state antifraud and enforcement authority.

     • Remedies and Administrative Provisions

       Powers of the state securities Administrator, including administrative actions and other penalties/liabilities.

     • Communication with Clients and Prospects

       Required disclosures, prohibitions on misrepresenting registration status or guaranteeing performance, client contract requirements, and rules on advertising/correspondence including social media and digital communications.

     • Ethical Practices and Fiduciary Obligations

       Fee/compensation disclosure, custody and discretion rules, AML, conflicts of interest and prohibited conduct (insider trading, selling away, market manipulation, exploitation of vulnerable adults), plus cybersecurity/privacy and business continuity planning.

3. Practice by topic

   • Client Profile and Investment Policy Statement
   • Economic Concepts
   • Fiduciary Duty
   • Financial Statement Analysis
   • Investment Adviser Registration
   • Investment Companies and Alternatives
   • Portfolio Management
   • Prohibited Practices
   • Retirement and Tax
   • Risk and Return
   • Securities Characteristics

4. Try mixed practice questions

   Series 65 practice questions with answers

5. Compare the Series 65 with other exams

   • Series 65 vs Series 66
   • Series 63 vs Series 65