Amazon
Avaya
Cisco
CompTIA
CrowdStrike
EC-Council
EXIN
Fortinet
Google
ISC
ISC2
ITIL
Juniper
Microsoft
NVIDIA
Okta
Palo Alto Networks
Salesforce
All Vendors
  1. Home
  2. FINRA
  3. SERIES 66

FINRA SERIES 66 Exam (page: 1)
FINRA Series66 (Series66) NASD Series 66
Updated on: 12-Feb-2026

Viewing Page 1 of 33
SERIES 66 PDF 251 Questions

Tiffany's brother, Jamal, is a new investor but believes that the markets are basically efficient and that he doesn't have the knack for or interest in predicting trends. He also believes in saving money on transaction costs and taxes. Jamal's investment style is best described by which of the following:

  1. Indexing
  2. Tactical asset allocation
  3. Buy and hold
  4. Diversification

Answer(s): C

Explanation:

A buy-and-hold strategy describes a passive investment approach. This approach assumes that markets are efficient and that it is impossible to time the purchase or sale of securities or to manage the balance of assets in order to take advantage of market movements. Since this is a passive strategy, there are reduced transactions costs and also reduced tax consequences. The downside to a buy-and- hold approach is that over time, the risk and reward of the asset allocation will change and may not be in alignment with the client's original risk tolerance and objectives



In 2004, inflation has risen to 4%. The Seymour Jones family has owned an 8% callable corporate bond for seven years. Calculate the 2004 real interest rate on this bond.

  1. .04%
  2. 12%
  3. 98%
  4. 4%

Answer(s): D

Explanation:

The formula for inflation-adjusted return factors the eroding effect of inflation on an investment's annual yield (8%-4%= 4%). It makes no difference that the bond is callable or that the family has owned the bond for seven years.



Samantha Peterson felt that she had made a great investment in Zip Wow, a growing company in Kalamazoo. She had purchased 10 of Zip Wow''s 11% bonds at 103 and hoped to make a profit before the bonds were called. In 2003, inflation rose from 2% to 3% and Zip Wow''s stock dropped to $12 per share. Calculate the inflation- adjusted return on one of Samantha''s bonds for 2003.

  1. $11.33
  2. 8%
  3. 10%
  4. $113.30

Answer(s): B

Explanation:

Inflation-adjusted return shows an investment's true yield by factoring out the eroding effect of inflation from an annual interest rate. It is calculated by a simple formula: Annual interest rate (yield) plus or minus the current inflation rate. Here: 11% - 3% inflation = 8% inflation-adjusted return on the bond



Which one of the following client types may NOT be taxed by the IRS based on the personal income tax brackets of the individuals in the group?

  1. S Corporation
  2. Limited Liability Company
  3. C Corporation
  4. Partnership

Answer(s): C

Explanation:

C corporations are required to pay taxes on their incomes as a corporate entities; the tax amount is NOT based on the personal tax rates of the individuals who work for the corporation or its shareholders (owners). However, shareholders are required to pay taxes on profits (dividends) at their individual income tax rate. C corporations face a double taxation and this is a key disadvantage to this type of business structure. An S corporation, if certain requirements are met, can choose to be taxed like a partnership or limited liability company. Within these entities, the individuals involved will be taxed at their personal income tax rates rather than on the profits of the entity as a whole.



As an advisor makes recommendations for the investments within a trust, who is the most important to consider:

  1. The grantor
  2. The executor
  3. The beneficiary
  4. The trustee

Answer(s): C

Explanation:

The beneficiary's financial objectives should be the primary focus for investments within the trust. The beneficiary's objectives may be quite different from that of the trustee and the investment advisor must develop an investment profile that is suitable



The executor of an estate is typically identified within which document?

  1. Life insurance policy
  2. The trust certificate
  3. The will
  4. The discretionary order

Answer(s): C

Explanation:

An estate's executor is typically identified within the will of the deceased. If no executor has been selected, the state will appoint someone to manage the assets of the estate; this person is known as the administrator



A self-employed individual is an example of which of the following?

  1. Sole Proprietor
  2. Limited Liability Company
  3. Subchapter S
  4. General Partnership
  5. Executor

Answer(s): A

Explanation:

Self-employed individuals work for themselves and are considered sole proprietors. A sole proprietor maintains managerial control of his or her business, is entitled to all the profits from the business and is personally responsible for all company debt



Ronnie Ann is a 48-year-old marketing executive. She consults Amy, her investment advisor about the possibility of retiring at age 55, based on her current investments and an anticipated inheritance in the next year. Since Ronnie Ann''s time horizon to retirement is short (seven years), she tells Amy that she cannot afford to invest new money in speculative, high-risk investments.
Which of the following would represent an unsuitable investment for Ronnie Ann''s time horizon?

  1. Blue Chip Stocks
  2. ''AAA'' Bonds
  3. Hedge Fund
  4. Money Market CD

Answer(s): C

Explanation:

Hedge funds are high-risk investment vehicles that can return a high pay-off; however, this type of investment is very risky and Ronnie Ann specifically expressed concern that her time horizon would not allow for risky new investments. In seven years, Ronnie Ann's money would be very safe in a money market CD, high grade corporate bonds (AAA) or a very closely managed portfolio of blue chip stocks



Viewing Page 1 of 33



Share your comments for FINRA SERIES 66 exam with other users:

Jay 9/26/2023 8:00:00 AM

link plz for download
UNITED STATES