According to the CBOE Outline, 50% of the test covers Trading Practices and Prohibited Acts. Breakdown is as follows: 1. Supervisory Procedures 2. Applicable Federal Regulations 3. Prohibited Activities 4. Trading Practices 5. Regulation NMS - Regulation of the National Market System 6. Third Party Trades 7. Excercise/Assignment of Options 8. Clearance, Transaction Review and Settlement Procedures 9. Transaction Review 10. Order Tickets 11. Settlement Practices https://www.cboe.org/examwaiver/Series56ContentOutline.pdf Ref page 3 For those that have taken the test, do you feel that 50% of the questions fell within these categories?
At the end of the exam, you get a print out of your score per section. On the print out it says that 50 questions came from Section 4: Trading Practices and Prohibited Acts
That indeed is correct. 9 - Personnel, Business conduct & recordkeeping/reporting 8 - Markets, participants, exchanges, SROs 20 - Types & charateristics of securities & investments 50 - Trading practices & prohibited acts 13 - Display, execution & trading systems ------ 100 An easy exam if you have been around the industry for 25 years. Scored a 92% on 1.5 hours of prep.