Series 65 Outline Checklist

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Official outline: NASAA - Series 65 Test Specifications (effective June 12, 2023). 130 scored questions, 3 hr, pass: 92 of 130 correct (about 71%).

[ ] I. Economic Factors and Business Information (15%, 20 questions)

• [ ] Business cycles, monetary and fiscal policy, inflation, interest rates, yield curves and credit spreads.
• [ ] Financial statements and accounting basics.
• [ ] Time value of money (IRR, NPV, FV), descriptive statistics (standard deviation, beta, alpha, Sharpe), and ratios (current, quick, debt-to-equity, P/E, P/B).
• [ ] Systematic vs. unsystematic risk; capital structure and liquidation priority.

Trap: Confusing standard deviation (total risk) with beta (systematic risk).

[ ] II. Investment Vehicle Characteristics (25%, 32 questions)

• [ ] Cash equivalents, fixed income types and valuation (duration, YTM, YTC, credit spread).
• [ ] Equities, valuation methods and public offerings, including SPACs.
• [ ] Pooled investments: mutual funds, private funds, UITs, ETFs, REITs; share classes and costs.
• [ ] Derivatives, alternatives (ETNs, leveraged and inverse funds), annuities, life insurance, commodities and digital assets.

Trap: Holding leveraged or inverse funds long term: they reset daily and can drift far from the multiple of the index over time.

[ ] III. Client Investment Recommendations and Strategies (30%, 39 questions)

• [ ] Client types, client profile and risk tolerance.
• [ ] CAPM, Modern Portfolio Theory and the Efficient Market Hypothesis.
• [ ] Strategies and styles: strategic vs. tactical allocation, active vs. passive, growth vs. value.
• [ ] Taxes, retirement plans, ERISA, special accounts (529, Coverdell, UTMA/UGMA, HSA) and estate planning.
• [ ] Trading terminology, best execution and performance measures (time-weighted vs. dollar-weighted return).

Trap: Using dollar-weighted return to judge a manager who does not control client cash flows; time-weighted is the right measure.

[ ] IV. Laws, Regulations and Guidelines, incl. Prohibition on Unethical Business Practices (30%, 39 questions)

• [ ] Definitions and registration of IAs and IARs, including federal covered vs. state-registered advisers and notice filing.
• [ ] Books and records, custody, discretion and fiduciary duty.
• [ ] Communications, performance-based fees, soft dollars and compensation disclosure.
• [ ] Prohibited practices: loans with clients, sharing in accounts, selling away, insider trading, exploitation of vulnerable adults.

Trap: Assuming a federal covered adviser is outside state jurisdiction entirely; states still receive notice filings and enforce antifraud rules.

Checked against the official outline on 2026-09-23. FINRA and NASAA do not endorse SeriesPrepKit.

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