Research Analyst Exam – Analysis Module (Series 86) Practice Test
Build your confidence for Research Analyst Exam – Analysis Module (Series 86). Practice the concepts, understand the answers, and strengthen your knowledge one question at a time.
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The Research Analyst Exam - Analysis Module (Series 86) is a specialized qualification administered by FINRA for professionals who produce and communicate equity research. The exam focuses on the analytical skills and regulatory knowledge required to write and distribute research reports on equity securities. It tests a candidate's ability to analyze financial statements, evaluate company performance, assess industries and markets, and apply valuation methodologies. The 43-question exam is typically taken alongside the Series 87, which covers regulatory obligations. This module is essential for research analysts, associates, and other financial professionals whose primary function involves the substantive analysis of public companies for the purpose of making investment recommendations. Successfully passing the Series 86 demonstrates a foundational competency in the core analytical techniques that underpin professional equity research, separating technical analysis from sales and communication functions.
Sample Questions
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An analyst covering Relay Payments, a card processing issuer, is updating a 2025 demand model after management says orders softened late in the quarter but backlog remains above last year. The stock also moved with the market after a payrolls release, and one large customer delayed a purchase for budget reasons. Which data point should receive the greatest weight as a forward-looking industry input before changing the revenue forecast?
Aster Logic is an early-stage analog semiconductors company with negative GAAP EPS, positive gross margin, and heavy reinvestment. Peers are valued on forward revenue and gross profit, while mature companies in the sector trade on EV/EBITDA. Which valuation approach should carry the most weight in a relative valuation?
An analyst covering Hudson Office Trust, a urban office REITs issuer, is updating a 2025 demand model after management says orders softened late in the quarter but backlog remains above last year. The stock also moved with the market after a payrolls release, and one large customer delayed a purchase for budget reasons. Which data point should receive the greatest weight as a forward-looking industry input before changing the revenue forecast?
An analyst covering Ironridge Copper, a copper mining issuer, is updating a 2025 demand model after management says orders softened late in the quarter but backlog remains above last year. The stock also moved with the market after a payrolls release, and one large customer delayed a purchase for budget reasons. Which data point should receive the greatest weight as a forward-looking industry input before changing the revenue forecast?
A 2025 industry screen shows urban office REITs volumes down 3% year over year, but replacement demand is stable, the customer base is aging, and regulatory subsidies are scheduled to phase down over two years. What classification best frames the analyst's next data collection step?
Career Opportunities & Salary
Exam insights and study advice
Mastery of the content in the Series 86 is not merely about passing a regulatory hurdle; it is about building the analytical framework used daily by professional research analysts. The exam's focus on financial statement analysis, valuation models (DCF, comparable companies, precedent transactions), and economic analysis directly translates to the tasks of building financial models, writing initiation reports, and justifying price targets. Understanding these principles ensures your research is methodologically sound, defensible to clients and regulators, and forms the credible foundation upon which investment decisions are made. It is the technical bedrock of a career in equity research.
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These are the backgrounds the certifying body suggests. Check the vendor's own page for anything it formally requires.