Series 66 Question error

Isn’t the Quick Assets formula: QA = Current assets - inventory?
This question is showing a different formula. Even the answer to the question is based on the current assets - current liabilities formula.

Since the Series 66 is still being worked on, maybe having a thread or topic where we can place all the questions with typos/errors would be beneficial.

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Hi @MortTheTort, thanks for writing about this one.

My understanding is that you are correct and these are the formulas:

Quick assets = current assets - inventory
Working capital = current assets - current liabilities

But let me discuss with Brandon to double-check and see how we should change this question!

If you come across other typos/errors, feel free to just drop them in here or start another topic, we’ll see it either way. Thank you!

Hi @MortTheTort! Thanks for pointing this out.

This question should be asking for ‘net working capital,’ not ‘quick assets.’ NWC is equal to current assets minus current liabilities. We’re working on updating the question right now.

To be clear, quick assets is equal to current assets minus inventory.

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Think I found a few more errors.

The answer here should be Invest Compnay Act of 1940; closed-ended right?

The question is asking for the alpha of FFF Stock Fund, but the answer and explanation show that the intended question appears to be what MNO’s stock fund should be.

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Hi @MortTheTort,

For the first one, ETFs are registered under the Investment Company Act of 1940 as open-end management companies. Here’s a link to our Series 66 textbook page on Exchange traded funds (ETFs) and a link to a FINRA bulletin stating the same:

ETFs are a type of exchange-traded investment product that must register with the SEC under the 1940 Act as either an open-end investment company (generally known as “funds”) or a unit investment trust.

For the alpha question, you’re correct - the question had a typo asking for the wrong fund. I’ve just updated this!

Thanks for the clarification! I guess I had a brain fart or something.


Unless I’m misunderstanding the questions, when it comes to whole life insurance wouldn’t II be correct and I be false?

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Hi @MortTheTort! Thanks for reaching out about this - there’s a typo in the answer. It should be answer choices I and III, as both are false. We’re fixing this now!

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No problem! It also appears that there are a few questions regarding the Efficient Market Hypothesis that are in section 3.3’s testing pool instead of 3.4.

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Hey @MortTheTort, thanks for letting us know.

It looks like there were three questions in the wrong chapter - I’ve just moved them.

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I’d like to hear your thoughts regarding the number of questions in the quiz bank. Some sections may have a lot of questions compared to other sections, but make up a smaller percentage on the exam. Also, some of those sections may have already been covered on both the SIE and Series 7.

For example, the Trading Securities section has a total of 72 questions, yet only covers 2 questions out of the entire exam and much of the info covered in this section has already been covered within the SIE and Series 7 Exam. The Performance Measures isn’t something that has been covered in Series 7 and SIE and also makes up a larger percentage but has very few questions compared to Trading Securities.

I know that there are a lot of sub-sections within Trading Securities, but it feels like new concepts and sections that make up a higher percentage on the exam should have more quiz bank questions, compared to those that make up smaller percentages and those that have already been covered in previous exams.

I’m assuming you guys have some internal formula to determine the quiz bank weighting but would love to hear your opinion on this!

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Hi @MortTheTort. There are a few factors that we utilize to determine how many questions we allocate to a specific section. First, general “testability,” meaning we allocate more questions to more heavily tested chapters. I’m sure this conflicts a bit with sections like Trading Securities, which only represents 2 out of the 100 questions on the exam.

Second - we factor in how many ways a concept can be tested. This is the primary driver of the number of questions in Trading Securities. While the “testability” is fairly low, there are dozens of ways to ask questions on bid & ask spreads, order types, margin accounts, and general market dynamics. We want to make sure you’re as covered as possible when you sit for the exam, which is why you’re seeing questions from all different angles on some topics.

Third - some sections are fundamental concepts that are “built upon” in other chapters. For example, the Agency vs. principal chapter is very important to understand a number of topics in the Laws & regulations unit. Understanding the dynamics of a principal transaction is necessary to recognize that advisers performing these transactions in conjunction with a recommendation is a conflict of interest.

I hope this helps!


Is the answer for this question correct? I answered 200 as the question states that an investor would receive 1 share for every 4 rights owned.

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Hi @Various_harlequin_sa,

You’re correct that the investor would be able to purchase 200 shares with their 800 rights.

But, the question is asking about the number of rights, not the number of shares :slight_smile:


This is not related to a question, but can someone please clarify if setting up an LLC is NOT difficult or IS difficult?

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Hi @Various_harlequin_sa - thanks for pointing this typo out. I’ve updated the material to show that LLCs can be (and typically is) quite difficult to form, especially when forming a larger LLC.

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