The Series 86 Exam in 2024 has not changed much. That said, consistent feedback we hear from students is that the exam has become a little more conceptual. In today’s post, we discuss what exactly that means.
The Series 86 Exam and 2024: Current Events
The Series 86 Exam in 2024 has a different feel than it did in 2022. On May 15, 2023 the exam changed to 85 questions from 110 questions. And, towards the end of 2023, many students reported that the exam had become much more conceptual. In other words, the exam of prior months and years was heavily analytical and quantitative. Current feedback is that the exam is still analytical, but more conceptual in nature.
Many of the conceptual questions may also include current events more than in the past. For example, it’s possible to get a question related to the effects of the pandemic, a war overseas disrupting, energy markets, or even student loan debt forgiveness programs.
How to Prepare?
Despite the potential for a more conceptual, or qualitative, exam, know your financial statements inside and out. This part of studying for the Series 86 Exam is unchanged. For instance, a basic requirement for the Series 86 is to know the order of the income statement, balance sheet, and cash statement. Furthermore, you’ll want to know exactly how they interact with each other.
Next, make sure that you know as many financial ratios, and calculations, such as the discounted cash flow, dividend discount model, or Gordon Growth model. Often, knowing the formulas is imperative in understanding conceptual questions.
Consider the following: What will happen if there is an increase in market interest rates? You’ll need to know that an increase in rates leads to an increase in the risk free rate, which is largely related to an increase in the discount rate. This will ultimately decrease the intrinsic value of a company (and the present value of a pension liability).
Overall, there are many many tips and tricks for this exam. The Series 86 Exam in 2024 has not so much changed but is slightly tweaked from the past. However, it remains just as difficult as before. If you need help, we of course highly recommend a Series 86 tutor! We also have a Series 86 course which is highly affective. Feel free to reach out with any questions. Good luck!