Free NASAA Series 65 (Uniform Investment Adviser Law Examination) Formula and Limits Sheet (2026)
Every Series 65 formula you need on the test, grouped by topic, rendered with full math notation. 94 formulas across 4 topics, calibrated to the 2026 syllabus. Free forever, no signup required.
All Series 65 Formulas
Economic Factors and Business Information
5 items
Current ratio and quick ratio
, . CA = current assets, CL = current liabilities, Inv = inventory.
Working capital
, WC = working capital, CA = current assets, CL = current liabilities. A liquidity measure (dollar amount), not a ratio.
Debt-to-equity ratio
. Higher ratio = more leveraged (more risk). Lower = less reliance on debt financing.
Rule of 72
, r = annual return (%). Inverse: . To quadruple = two doubling periods (e.g. 8% 9 yrs to double, 18 yrs to quadruple).
Price-to-earnings and price-to-book ratios
, ; EPS = earnings per share, Book Value per Share = (assets - liabilities) / shares outstanding
Investment Vehicle Characteristics
3 items
Current yield (bond)
, uses market price not par. Premium bond: CY < nominal; discount: CY > nominal.
Tax-equivalent yield (municipal bond)
, used to compare a tax-exempt muni against a taxable bond on equal footing.
Mutual fund NAV and public offering price
; . TA = total assets, TL = total liabilities, Shares = shares outstanding, SC = sales charge %
Client Investment Recommendations and Strategies
7 items
After-tax return
, R_{at} = after-tax return, R_{pt} = pre-tax return, t = investor's marginal tax rate (decimal)
Real (inflation-adjusted) return
, R_nominal = nominal return, i = inflation rate (CPI). NASAA tests simple subtraction (e.g. TIPS).
Total return and holding period return
, P_begin = beginning value, P_end = ending value, Income = dividends/interest received. HPR is not annualized.
Sharpe ratio
, R_p = portfolio return, R_f = risk-free rate, = std deviation of portfolio (total risk). Higher = better risk-adjusted return.
CAPM expected return
, = risk-free rate, = beta (systematic risk), = expected market return, = market risk premium
Treynor ratio
, R_p = portfolio return, R_f = risk-free rate, = portfolio beta (systematic risk). Sharpe uses std dev (total risk); Treynor uses beta.
Alpha
, R_a = actual return, R_f = risk-free rate, = beta, R_m = market return. Positive = outperformance for risk taken.
Series 65 Limits and Thresholds
Economic Factors and Business Information
8 items
An ISM Manufacturing Index reading below 50 signals contraction in the manufacturing sector.
Form 10-K is the annual audited report, Form 10-Q is the quarterly unaudited report, and Form 8-K is filed for material events.
By the Rule of 72, money invested at 6% doubles in approximately 12 years.
A recession is commonly defined as two consecutive quarters of declining GDP.
By the Rule of 72, money invested at 8% doubles in approximately 9 years.
In liquidation, secured creditors are paid first and common stockholders are paid last, with preferred stock ranking below all creditors.
Dividend yield uses market price in the denominator, so a $1.80 dividend on a $60 stock yields 3.0%, not 9.0%.
A stock priced at $60 with EPS of $4 has a P/E of 15, and with a book value of $20 per share a P/B of 3.0.
Investment Vehicle Characteristics
32 items
Treasury bills are issued at a discount with no coupon and have maturities ranging from 4 to 52 weeks.
Negotiable CDs are large-denomination CDs of $100,000 or more that can trade in the secondary market, unlike regular CDs.
T-notes have maturities of 2-10 years, while T-bonds have maturities of 20-30 years.
A bond with a modified duration of 7 loses approximately 7% of its value if rates rise by 1%.
Taxable-equivalent yield equals the municipal yield divided by (1 - marginal tax rate).
Commercial paper matures in 1-270 days and is issued only by investment-grade corporations.
FDIC insures deposits up to $250,000 per depositor, per insured institution, per ownership category.
The lowest investment-grade rating is Baa (Moody's) / BBB (S&P); one notch below is junk.
Rule 144 lets non-affiliates of reporting companies sell after a 6-month hold, while non-affiliates of non-reporting companies must hold 1 year.
The constant-growth DDM is Price = D1 / (r − g), which only works when r > g, where D1 = D0 × (1 + g).
ISO gains qualify for long-term capital gains rates only if the shares are held at least 2 years from grant and 1 year from exercise.
RSI signals overbought above 70 and oversold below 30, while Bollinger Bands measure volatility, not momentum.
Under Rule 144, affiliates may sell the greater of 1% of outstanding shares or the average weekly trading volume over the prior 4 weeks.
The green shoe (overallotment) option lets underwriters sell up to 15% more shares to stabilize the price if demand exceeds the offering.
SPAC IPOs price the trust at approximately $10 per share, and sponsors typically receive a 20% promote that dilutes public shareholders.
Cumulative voting: shares to guarantee one board seat = , where S = shares outstanding and D = seats up for election. The outer '+ 1' rounds up to a whole share.
Class A shares charge a front-end load of typically 4-5.75%, while Class B CDSC periods often last 5-7 years before declining to zero.
The public offering price equals NAV / (1 - load), so a $20 NAV with a 5% load produces a POP of $21.05.
An investor who buys stock at $50 and a protective put ($45 strike, $3 premium) has a sale floor of $42 per share (strike minus premium) and a max loss of $8 per share (drop to the strike plus the premium).
REITs must distribute at least 90% of taxable income, and most REIT dividends are taxed as ordinary income, not qualified.
A call with a $75 strike when the stock trades at $82 has $7 of intrinsic value, and a $10 premium leaves $3 of time value.
Hedge funds typically charge "2 and 20": a 2% management fee plus 20% of profits.
Accredited investor: net worth over $1,000,000 (excluding primary residence) OR income over $200,000 ($300,000 joint) for 2 years.
12b-1 fees are capped at 0.25% for a fund to be called no-load and 1% total.
The IRS treats cryptocurrency as property subject to capital gains rules, while the CFTC classifies Bitcoin as a commodity, not an SEC security.
Annuity surrender charge periods typically last 5 to 8 years with a declining schedule, separate from the IRS 10% early withdrawal penalty.
Non-qualified annuity withdrawals follow LIFO, meaning earnings come out first and are fully taxable as ordinary income before cost basis.
A fixed indexed annuity with a 70% participation rate credits 8.4% when the index rises 12%, subject to a 10% cap on maximum gain.
A Section 1035 exchange allows tax-free swaps of life insurance into an annuity but never an annuity into life insurance, with cost basis carrying over.
A 2x leveraged ETF starting at $100 ends at $96 after the index rises 10% then falls 10%, a 4% loss versus the index's 1% loss from volatility decay.
Non-qualified annuity withdrawals before age 59½ trigger a 10% IRS early withdrawal penalty on the taxable portion.
Collectibles (gold, art, rare coins) are taxed at a maximum long-term capital gains rate of 28%, versus the standard 20% rate for stocks.
Client Investment Recommendations and Strategies
23 items
Under CAPM with risk-free rate 4%, market return 11%, and beta 0.6, expected return = 4% + 0.6 × 7% = 8.2%.
Under CAPM with a risk-free rate of 3%, market return of 10%, and beta of 1.4, the expected return is 3% + 1.4×7% = 12.8%.
A private foundation must distribute at least 5% of its net investment assets annually for charitable purposes.
Alpha equals actual return minus CAPM expected return, so a portfolio returning 11.5% against a 9.3% CAPM expectation has an alpha of +2.2%.
An S corporation is limited to 100 shareholders and one class of stock, with income passing through to shareholders.
A private foundation facing 2.5% inflation and 0.5% expenses needs roughly 8% gross return to preserve purchasing power after its 5% mandatory payout.
Portfolio beta is the weighted average of holdings, so 50% in a beta-1.3 fund and 50% in a beta-0.5 fund gives a portfolio beta of 0.90.
RMDs from Traditional IRAs begin at age 73 (75 for those born in 1960 or later), and the excise tax on a shortfall is 25%.
The wash sale window is 61 days total, 30 days before plus the sale date plus 30 days after.
The 2026 federal estate tax exemption is $13.99 million per person taxed at 40%, and the annual gift exclusion is $19,000 per recipient.
The 2025 401(k) elective deferral limit is $23,500 with a $7,500 catch-up for age 50+ and a super catch-up of $11,250 for ages 60-63.
Qualified dividends require holding the stock more than 60 days during the 121-day window around the ex-dividend date to receive long-term capital gains rates.
457(b) distributions are never subject to the 10% early withdrawal penalty regardless of age.
SIMPLE IRA employee deferrals cap at $16,000 (2024), and early withdrawals within the first 2 years incur a 25% penalty instead of the usual 10%.
The AMT applies a flat 26% or 28% rate and is most commonly triggered by the exercise of incentive stock options (ISOs).
529 superfunding allows front-loading 5 years of annual gift exclusions, up to $95,000 per contributor in one year with no gift tax.
The Sharpe ratio divides excess return by standard deviation (total risk) while the Treynor ratio divides by beta (systematic risk).
The long margin call price equals debit balance divided by (1 - maintenance margin %), so a $15,000 loan at 25% maintenance triggers at a $20,000 value, or $40/share on 500 shares.
Reg T initial margin is 50% of purchase price; FINRA maintenance margin minimum is 25% of current market value.
Coverdell ESA contributions cap at $2,000 per beneficiary annually and phase out for single filers above $110,000 MAGI.
2026 HSA contribution limits are $4,300 individual and $8,550 family, with a $1,000 catch-up at age 55+.
HSA non-medical withdrawals before age 65 face income tax plus a 20% penalty, but after 65 they are taxed as ordinary income with no penalty.
Unused 529 funds can roll into the beneficiary's Roth IRA if the account has been open at least 15 years, capped at $35,000 lifetime.
Laws, Regulations, and Guidelines
16 items
Form ADV Part 2A must be delivered 48 hours before signing OR at signing with a 5 business day cancellation right.
An SEC-registered adviser whose AUM drops below $90 million must switch back to state registration within 180 days.
Investment advisers register with the state under $100 million AUM and must register with the SEC at $110 million or above.
An agent may represent only one broker-dealer at a time unless the firms are affiliated under common ownership or control.
State-registered IAs must retain books and records for 5 years, with the most recent 2 years kept at the principal office.
Broker-dealer state registration becomes effective at noon on the 30th day after filing unless the Administrator acts sooner.
Form ADV Part 1 goes to regulators, Part 2A is the firm brochure for clients, and Part 2B is the brochure supplement covering the advising individual.
An IA must deliver an updated Form ADV Part 2A or summary of material changes within 120 days after the end of its fiscal year.
Registration by notification is available only to seasoned issuers in business at least 36 consecutive months with no defaults in the past 3 years.
The USA civil statute of limitations is the earlier of 2 years after discovery of the violation or 3 years after the transaction.
Performance-based advisory fees require a qualified client with $1.1 million AUM with the adviser or $2.2 million net worth.
Regulation A+ Tier 1 caps offerings at $20 million in 12 months while Tier 2 caps at $75 million in 12 months.
SARs are filed with FinCEN for suspicious transactions of $5,000 or more while CTRs are filed for cash transactions exceeding $10,000.
Reg D Rule 504 covers offerings up to $10 million, Rule 506(b) permits up to 35 sophisticated non-accredited investors, and Reg Crowdfunding caps at $5 million per 12 months.
Registration by coordination becomes effective when SEC registration is effective, provided the state filing has been on file at least 10 days.
Criminal violations of the USA carry penalties of up to a $5,000 fine and 3 years imprisonment per violation.