Series 86 study guide
Series 86 · Work through your exam, one topic at a time.
The Series 86 exam is Part I of FINRA's Research Analyst Exams, which FINRA describes as assessing the competency of an entry-level registered representative to perform the job of a research analyst. It is aimed at professionals who prepare written or electronic communications that analyze equity securities and/or companies and industry sectors - and, per FINRA, the registration requirements do not distinguish between "sell-side" and "buy-side" analysts. Candidates must be associated with and sponsored by a FINRA member firm (or another applicable self-regulatory organization member firm) to sit for it, and the Securities Industry Essentials (SIE) exam is a co-requisite: the Research Analyst registration requires passing the SIE plus both the Series 86 and the Series 87. The exam carries 85 scored items spread across three major job functions: Information and Data Collection (18 items), Analysis, Modeling and Valuation (28 items), and Valuation and Forecasting (39 items). The Series 86 study guide has 3 sections and about 1,095 words.
01Information and Data Collection
Research starts with a documented data trail. Distinguish primary data you generate (channel checks, store visits, expert-network calls, proprietary surveys, management meetings) from secondary data already published (SEC filings, earnings transcripts, sell-side notes, industry-association statistics, government releases).
353 words, about 2 min02Analysis, Modeling and Valuation
Begin with common-size analysis (each line as a percentage of revenue or assets) and a DuPont decomposition: ROE = net margin × asset turnover × leverage. That reveals whether returns come from pricing, efficiency, or balance sheet.
356 words, about 2 min03Valuation and Forecasting
A credible forecast is driver-based and auditable. Break revenue into the smallest reliable unit - units × price, subscribers × ARPU, square footage × sales per square foot - and state each assumption in one sentence so a reviewer can challenge it.
386 words, about 2 min