FINRA SERIES 65 EXAM STUDY GUIDE
2025/2026 ACCURATE QUESTIONS AND
VERIFIED CORRECT SOLUTIONS WITH
RATIONALES || 100% GUARANTEED PASS
<RECENT VERSION>
1. Investment Advisory Representative (IAR) - ANSWER 1. Upon passing the
series 65 the agent may represent an registered investment adviser (RIA) and
receive fee based compensation. The fee based compensation may be based on a
percentage of the assets under management or as an hourly or flat fee for providing
a personalized financial plan. There are no prerequisites for taking the series 65
exam and the candidate does not need to be sponsored by a FINRA member firm to
take the test.
2. The series 66 is the uniform combined state law exam and qualifies a candidate
to represent both an investment adviser and a broker dealer. After passing the series
66 an agent may receive both fee based compensation for representing an
investment adviser and transition based compensation for executing customer
orders. The series 66 is a combination of the series 63 exam and the series 65
exam. Candidates do not have to be sponsored by a FINRA member firm to take
the series 66 exam. However, the series 7 exam is the co requisite for the series 66
exam and a candidate who has passed the series 66 exam may not conduct any
business until they have passed the series 7 exam. All candidates must be
sponsored to take the series 7 exam. If you have passed the series 7 exam and have
not taken the series 63 exam, the series 66 may be the right exam to take. Keep in
mind that while the series 66 has fewer questions than the series 65. If you have
not passed the series 7 or will not be taking the series 7 exam you must take the
series 65 exam.
, the financial effect of making student loan payments for 20 years after graduating
from college can be easily seen - ANSWER the financial effect of making student
loan payments for 20 years after graduating from college can be easily seen.
For example, a college graduate who owes $60,000 in student loans at 3% interest
will have to pay $332.76 per month for 20 years to get that paid off. If that amount
was instead diverted into a Roth IRA that grows at 6% for that same time period
(with no further contributions after 20 years), then the student would have almost
$600,000 of tax-free money by age 65. No poll or study is necessary to see the
enormous impact that student loan debt can have on a borrower's retirement
preparedness. (For more, see: Student Loans: What to Do When You Can't Repay
Them.)
Certificate of Deposit (CD) - ANSWER 1. a time deposit at a commercial bank
and insured by the FDIC that restricts holders from withdrawing funds on demand.
2. bears a maturity date ranging from one month to five years at a fixed interest
rate and can be issued in any denomination.
Negotiable Certificates of Deposit (NCD)
(Jumbo CD) - ANSWER 1. a large certificate of deposit that is typically purchased
by institutional/company investors.
2. Unlike a regular CD, NCDs pay periodic interest, usually twice a year and
cannot be cashed in before reaching maturity, but can be easily sold in the open
market before that time.
3. minimum face value of $100,000, but typically are $1 million or more.
Treasury Bills (T-bills) - ANSWER 1. short-term securities that mature in
3-months, 6-months or 1-year.
2. exempt from state and local taxes.
3. purchased at less than par.
4. issued in denominations at $1,000, $5,000, $10,000, $25,000, $50,000, $100,000
and $1 million.
5. all Treasuries are considered to be risk-free (safest investments in the world).
, Treasury Notes (T-notes) - ANSWER 1. a maturity between 1 and 10 years.
2. exempt from state and local taxes.
3. purchased at face value and pay out interest payments semi-annually.
4. bought through a bank or directly from US gov't.
5. can be sold in a large secondary market (liquidity).
Treasury Bond (T-Bond) - ANSWER 1. a maturity of more than 10 years.
2. exempt from state and local taxes.
3. purchased at face value and pay out interest payments semi-annually.
4. issued with a minimum denomination of $1,000 and maximum of $5 million.
5. After auction, bonds can be sold in the secondary market.
6. bonds can be bought directly from the government through TreasuryDirect at
http://www.treasurydirect.gov, thereby bypassing a broker.
U.S. Savings Bonds - ANSWER 1. offer a fixed rate of interest over a fixed period
of time.
2. not subject to state or local income taxes.
3. cannot be cashed until at least six months after purchase but maturity varies
somewhere between 15 to 30 years.
4. come in 8 values: $50, $75, $100, $200, $500, $1,000, $5,000, and $10,000.
5. purchased directly from the Dept of the Treasury but can be cashed out at most
banks.
6. must be an American citizen.
Municipal Bonds - ANSWER 1. are exempt from federal taxes and from most
state and local taxes.
2. issued by a state, municipality or county to finance its capital expenditures (such
as the construction of highways, bridges or schools).
Zero-Coupon Bonds - ANSWER a type of bond that makes no coupon payments
but instead is issued at a considerable discount to par value.
Brady Bonds - ANSWER 1. are U.S. dollar denominated bonds that were issued
by mainly Latin American countries, with U.S. Government 30 year zero coupon
bonds serving
, as collateral to ensure payment of the principal.
2. were created in March of 1989 and named for the then U.S. Treasury Secretary,
Nicolas Brady.
Yankee Bonds - ANSWER a bond denominated in U.S. dollars that is publicly
issued in the U.S. by foreign banks and corporations. These bonds must be
registered under the Securities Act of
1933 with the SEC before they can be sold.
Breakpoint - Investment Companies - ANSWER the quantity level stated in the
prospectus at which investors receive a reduction in load; for families, legitimate
entities, pensions, employees of fund, NOT FOR invest. clubs or clients of the
same advisor
Investment Company Act of 1940 - ANSWER Congressional legislation
regulating companies that invest and reinvest in securities. The act requires an
investment company engaged in interstate commerce to register with the SEC.
Shareholder report - Investment Company - ANSWER Semianually; balance
sheet, income statement, securities owned, compensation, and transactions
Embezzlement and Lacerny under IC Act of 1940 - ANSWER $10,000 fine and
five year imprisonment
Current return on mutual funds - ANSWER Yearly div / current offering price
Total Return on mutual fund - ANSWER capital gains + income distributed
NSMIA of 1996 - ANSWER Bifurcated investment adviser regulation state
covered and federally covered
Uniform Securities Act of 1956 - ANSWER model for blue sky laws for the
purpose of unifying the laws across the states
2025/2026 ACCURATE QUESTIONS AND
VERIFIED CORRECT SOLUTIONS WITH
RATIONALES || 100% GUARANTEED PASS
<RECENT VERSION>
1. Investment Advisory Representative (IAR) - ANSWER 1. Upon passing the
series 65 the agent may represent an registered investment adviser (RIA) and
receive fee based compensation. The fee based compensation may be based on a
percentage of the assets under management or as an hourly or flat fee for providing
a personalized financial plan. There are no prerequisites for taking the series 65
exam and the candidate does not need to be sponsored by a FINRA member firm to
take the test.
2. The series 66 is the uniform combined state law exam and qualifies a candidate
to represent both an investment adviser and a broker dealer. After passing the series
66 an agent may receive both fee based compensation for representing an
investment adviser and transition based compensation for executing customer
orders. The series 66 is a combination of the series 63 exam and the series 65
exam. Candidates do not have to be sponsored by a FINRA member firm to take
the series 66 exam. However, the series 7 exam is the co requisite for the series 66
exam and a candidate who has passed the series 66 exam may not conduct any
business until they have passed the series 7 exam. All candidates must be
sponsored to take the series 7 exam. If you have passed the series 7 exam and have
not taken the series 63 exam, the series 66 may be the right exam to take. Keep in
mind that while the series 66 has fewer questions than the series 65. If you have
not passed the series 7 or will not be taking the series 7 exam you must take the
series 65 exam.
, the financial effect of making student loan payments for 20 years after graduating
from college can be easily seen - ANSWER the financial effect of making student
loan payments for 20 years after graduating from college can be easily seen.
For example, a college graduate who owes $60,000 in student loans at 3% interest
will have to pay $332.76 per month for 20 years to get that paid off. If that amount
was instead diverted into a Roth IRA that grows at 6% for that same time period
(with no further contributions after 20 years), then the student would have almost
$600,000 of tax-free money by age 65. No poll or study is necessary to see the
enormous impact that student loan debt can have on a borrower's retirement
preparedness. (For more, see: Student Loans: What to Do When You Can't Repay
Them.)
Certificate of Deposit (CD) - ANSWER 1. a time deposit at a commercial bank
and insured by the FDIC that restricts holders from withdrawing funds on demand.
2. bears a maturity date ranging from one month to five years at a fixed interest
rate and can be issued in any denomination.
Negotiable Certificates of Deposit (NCD)
(Jumbo CD) - ANSWER 1. a large certificate of deposit that is typically purchased
by institutional/company investors.
2. Unlike a regular CD, NCDs pay periodic interest, usually twice a year and
cannot be cashed in before reaching maturity, but can be easily sold in the open
market before that time.
3. minimum face value of $100,000, but typically are $1 million or more.
Treasury Bills (T-bills) - ANSWER 1. short-term securities that mature in
3-months, 6-months or 1-year.
2. exempt from state and local taxes.
3. purchased at less than par.
4. issued in denominations at $1,000, $5,000, $10,000, $25,000, $50,000, $100,000
and $1 million.
5. all Treasuries are considered to be risk-free (safest investments in the world).
, Treasury Notes (T-notes) - ANSWER 1. a maturity between 1 and 10 years.
2. exempt from state and local taxes.
3. purchased at face value and pay out interest payments semi-annually.
4. bought through a bank or directly from US gov't.
5. can be sold in a large secondary market (liquidity).
Treasury Bond (T-Bond) - ANSWER 1. a maturity of more than 10 years.
2. exempt from state and local taxes.
3. purchased at face value and pay out interest payments semi-annually.
4. issued with a minimum denomination of $1,000 and maximum of $5 million.
5. After auction, bonds can be sold in the secondary market.
6. bonds can be bought directly from the government through TreasuryDirect at
http://www.treasurydirect.gov, thereby bypassing a broker.
U.S. Savings Bonds - ANSWER 1. offer a fixed rate of interest over a fixed period
of time.
2. not subject to state or local income taxes.
3. cannot be cashed until at least six months after purchase but maturity varies
somewhere between 15 to 30 years.
4. come in 8 values: $50, $75, $100, $200, $500, $1,000, $5,000, and $10,000.
5. purchased directly from the Dept of the Treasury but can be cashed out at most
banks.
6. must be an American citizen.
Municipal Bonds - ANSWER 1. are exempt from federal taxes and from most
state and local taxes.
2. issued by a state, municipality or county to finance its capital expenditures (such
as the construction of highways, bridges or schools).
Zero-Coupon Bonds - ANSWER a type of bond that makes no coupon payments
but instead is issued at a considerable discount to par value.
Brady Bonds - ANSWER 1. are U.S. dollar denominated bonds that were issued
by mainly Latin American countries, with U.S. Government 30 year zero coupon
bonds serving
, as collateral to ensure payment of the principal.
2. were created in March of 1989 and named for the then U.S. Treasury Secretary,
Nicolas Brady.
Yankee Bonds - ANSWER a bond denominated in U.S. dollars that is publicly
issued in the U.S. by foreign banks and corporations. These bonds must be
registered under the Securities Act of
1933 with the SEC before they can be sold.
Breakpoint - Investment Companies - ANSWER the quantity level stated in the
prospectus at which investors receive a reduction in load; for families, legitimate
entities, pensions, employees of fund, NOT FOR invest. clubs or clients of the
same advisor
Investment Company Act of 1940 - ANSWER Congressional legislation
regulating companies that invest and reinvest in securities. The act requires an
investment company engaged in interstate commerce to register with the SEC.
Shareholder report - Investment Company - ANSWER Semianually; balance
sheet, income statement, securities owned, compensation, and transactions
Embezzlement and Lacerny under IC Act of 1940 - ANSWER $10,000 fine and
five year imprisonment
Current return on mutual funds - ANSWER Yearly div / current offering price
Total Return on mutual fund - ANSWER capital gains + income distributed
NSMIA of 1996 - ANSWER Bifurcated investment adviser regulation state
covered and federally covered
Uniform Securities Act of 1956 - ANSWER model for blue sky laws for the
purpose of unifying the laws across the states
