Which of the following is a focus area in the Series 86 exam?

The focus area in the Series 86 exam is primarily centered on equity analysis, which encompasses equity valuation techniques. This includes understanding various models and methodologies used to assess the value of stocks, such as discounted cash flow analysis, comparative company analysis, and precedent transactions. Mastery of these techniques is essential for research analysts, as they provide the analytical framework necessary to evaluate companies and their stock performance.

In contrast, while options and derivatives trading, debt securities analysis, and currency exchange mechanics are important concepts within the broader field of finance, they fall outside the specific focus of the Series 86 exam. The exam is designed to assess proficiency in equity research, thus making equity valuation techniques the critical area of concentration for candidates preparing for this certification. Understanding these techniques enables analysts to make informed recommendations based on thorough financial assessments.