FINRA Series 86 Research Analyst Practice Exam

The FINRA Series 86 Exam is a crucial step for anyone aspiring to become a certified research analyst. This specialized exam assesses your abilities in research analysis, a vital component in the financial services industry. With the right preparation materials, you can master the concepts necessary to excel and secure your future as a research analyst.

Understanding the Exam Format

The Series 86 Exam evaluates candidates' knowledge and skills through a focused test format:

• Number of Questions: The exam consists of 100 multiple-choice questions.
• Time Limit: You have 240 minutes (4 hours) to complete the exam.
• Scoring: A passing score is 73% or higher, which corresponds to at least 73 correct answers.
• Content Breakdown:
• Information and Data Collection (32%)
• Company and Industry Analysis (45%)
• Valuation Analysis (Special Situations) (23%)

This distribution requires candidates to have a solid grasp of analytical frameworks and financial modeling.

What to Expect on the Exam

The FINRA Series 86 Exam covers a comprehensive range of topics essential for a research analyst's role:

• Information and Data Collection: Questions will focus on understanding financial statements, gathering relevant economic data, and other key business metrics.
• Company and Industry Analysis: This section tests your ability to evaluate industry conditions, assess market trends, and understand competitive landscapes.
• Valuation Analysis: You'll encounter questions involving different valuation techniques, including discounted cash flow analysis and comparable company analysis, requiring application of these methods to determine a company's worth.

Candidates should prepare to face scenario-based questions that evaluate both their analytical thinking and their ability to apply theoretical knowledge to real-world financial challenges.

Tips for Passing the Exam

Preparing for the Series 86 Exam demands a strategic approach. Here are some tips to maximize your chances of success:

Thorough Understanding of the Material

The first step is to thoroughly understand the exam content. Breaking down each subject area and understanding its core principles is essential. Study consistently and identify any weak points in your knowledge early.

Utilize MBA-Level Resources

Leverage comprehensive study resources that match the exam's complexity. Textbooks on financial analysis, Valuation, and equity research can be invaluable. Additionally, online courses and lectures by experienced financial analysts can provide deeper insight.

Engage in Active Learning

Dig into active learning approaches such as:

• Flashcards: Create flashcards for key financial formulas and definitions.
• Practice Questions: Regularly work through test-like questions to gain familiarity with the exam's timing and format.

Study with Examzify

Examzify offers an extensive array of resources tailored to the FINRA Series 86 Exam. With practice tests, detailed explanations, and expert insights, you can cultivate a robust understanding of the subject matter and refine your test-taking skills.

Participate in Study Groups

Joining study groups or forums can provide support, diverse perspectives, and enhance your studying process through discussion and shared knowledge.

Manage Your Time Wisely

On exam day, time management is critical. Allocate time to each question and prioritize completing sections you find easiest first to secure those points quickly. Leave room to revisit and tackle more challenging questions later.

Conclusion

Passing the FINRA Series 86 Exam is a rewarding milestone in the journey of becoming a proficient research analyst. By understanding the exam format, preparing methodically, and utilizing effective study resources, you will set yourself up for success. Remember, consistent practice and a strategic approach are your best allies in conquering the Series 86 Exam and advancing your career in the financial industry.