How often do the Series 86 Exam questions rotate? While there’s no advertised answer on the FINRA website, or other official sources, anecdotes we hear from students indicate that FINRA rotates questions on a somewhat regular basis. In this post we explain a little more.
Series 86 Exam Questions Rotate…How Often?
It’s come to our attention in recent months of new changes to the Series 86 Exam. This is quite common from time to time, as FINRA changes things up.
Some of the questions we’ve heard in recent years that no longer get counted for instance include some that STC still include in their practice questions. So, some (and maybe even many), but not all practice questions offered by STC will help with the actual exam. Some that specifically won’t likely show up are those that include overly detailed health care questions. Recent anecdotes appear to indicate these aren’t likely.
What Stays?
On the other hand, there are a number of topics that are highly unlikely to ever change. For instance, discounted cash flows, dividend discount model, Gordon Growth model, and most other relative valuation questions. Other basic accounting ratios such as the turnover ratios, days sales outstanding, days payable, days in inventory, and all margin formulas are also quite core to equity research analysis. Furthermore, core efficiency ratios are also likely to stay such as ROE, ROA, and ROIC.
Topical Questions
One of things you can also expect to see on the exam are topical questions. For example, there are some that may address current events such as the recent pandemic. Others may even address things such as recent geopolitical events, economic cycles, or trends. While it’s hard to know if these topical questions will be counted, it’s worth expecting them.
Overall, many students look for indications of what to expect on online platforms or through coworkers. If you need help to get through the exam, feel free to reach out. Since we see over 100 students every year, we have a strong understanding of what’s likely to show up. Good luck studying in the meantime!