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200+ Free Series 86 Practice Questions

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Questions by Category

Series86-Valuation69 questions
Series86-Financial-Statements59 questions
Series86-Analysis-Modeling41 questions
Series86-Data-Collection18 questions
Series86-Industry-Analysis10 questions
Series86-Financial-Modeling3 questions
2026 Statistics

Key Facts: Series 86 Exam

70-75%

First-Time Pass Rate

Industry estimate

73%

Passing Score

FINRA

80-100 hrs

Study Time

Recommended

46%

Valuation

Largest section

$295

Exam Fee

FINRA

4h 30m

Exam Duration

FINRA

The Series 86 exam has an estimated 70-75% first-time pass rate. It requires 73% to pass in 4 hours 30 minutes. The exam covers three major areas: Information and Data Collection (21%), Analysis and Financial Modeling (33%), and Valuation (46%). Prerequisites: SIE + firm sponsorship. Plan for 80-100 hours of study focusing on DCF, comparable analysis, and financial modeling.

About the Series 86 Exam

The Series 86 is Part I of the Research Analyst qualification, covering analysis and valuation. It focuses on information and data collection (21%), analysis and financial modeling (33%), and valuation methodologies (46%) including DCF analysis, comparable company analysis, and precedent transactions.

Questions

85 scored questions

Time Limit

4 hours 30 minutes

Passing Score

73%

Exam Fee

$295 (FINRA)

Series 86 Exam Content Outline

21%

Information and Data Collection

SEC filings (10-K, 10-Q, 8-K), primary/secondary research, data sources, due diligence, and MNPI handling

33%

Analysis and Financial Modeling

Financial statement analysis, ratio analysis, revenue/expense modeling, working capital, and three-statement models

46%

Valuation

DCF analysis, WACC, terminal value, comparable company analysis, precedent transactions, multiples (P/E, EV/EBITDA, P/B), and sensitivity analysis

How to Pass the Series 86 Exam

What You Need to Know

  • Passing score: 73%
  • Exam length: 85 questions
  • Time limit: 4 hours 30 minutes
  • Exam fee: $295

Keys to Passing

  • Complete 500+ practice questions
  • Score 80%+ consistently before scheduling
  • Focus on highest-weighted sections
  • Use our AI tutor for tough concepts

Series 86 Study Tips from Top Performers

1Master DCF analysis including WACC calculation, terminal value methods (perpetuity growth and exit multiple), and sensitivity analysis
2Study comparable company analysis - know how to select comps, calculate multiples (P/E, EV/EBITDA, P/B), and apply them
3Understand precedent transaction analysis - control premiums, deal multiples, and selection criteria
4Practice financial statement analysis and ratio calculations - liquidity, profitability, leverage, and efficiency ratios
5Study SEC filings thoroughly - know the differences between 10-K, 10-Q, 8-K, and proxy statements
6Build comfort with three-statement financial models - income statement, balance sheet, and cash flow connections
7Learn revenue and expense modeling techniques including top-down and bottom-up approaches
8Understand MNPI handling requirements and information barrier procedures

Frequently Asked Questions

What is the Series 86 exam?

The Series 86 is Part I of FINRA's Research Analyst Qualification Examination. It covers analysis and valuation skills required to work as a research analyst, including information gathering from SEC filings, financial statement analysis, financial modeling, and valuation methodologies such as DCF, comparable company analysis, and precedent transactions. You must pass both Series 86 and Series 87 to be registered as a Research Analyst.

What is the Series 86 pass rate?

The Series 86 exam has an estimated pass rate of 70-75% for first-time test-takers. The exam has 85 scored questions plus unscored pretest items with a 73% passing score, taken over 4 hours 30 minutes. The technical nature of financial modeling and valuation calculations contributes to the difficulty.

What are the prerequisites for the Series 86?

You must pass the SIE (Securities Industry Essentials) exam and have firm sponsorship before taking the Series 86. A finance or accounting background is strongly recommended given the technical analytical content. After passing Series 86, you must also pass Series 87 (Part II) to complete the Research Analyst registration.

How long should I study for Series 86?

Plan for 80-100 hours of study over 8-12 weeks. Focus heavily on Valuation (46% of exam) including DCF analysis, WACC calculation, terminal value, comparable company analysis, and precedent transactions. Practice financial modeling and ratio analysis extensively. Complete at least 200 practice questions and score 80%+ consistently before scheduling.

What are the main topics on the Series 86?

The main topics are: Valuation (46%) covering DCF analysis, WACC, terminal value, comparable company analysis, precedent transactions, and multiples; Analysis and Financial Modeling (33%) covering financial statement analysis, ratio analysis, and three-statement models; and Information and Data Collection (21%) covering SEC filings, research sources, and MNPI handling.

What is the difference between Series 86 and Series 87?

Series 86 (Part I) covers analysis and valuation skills including financial modeling, DCF analysis, comparable company analysis, and data collection. Series 87 (Part II) covers regulatory administration and best practices including research report preparation, required disclosures, supervisory approval, and information dissemination. You must pass both exams to be registered as a Research Analyst.