SERIES 65 GLOSSARY

Series 65 Glossary: Every Term Tested

Reviewed by Series 65–licensed SME · Last updated 2026-05-04

Quick answer

What's tested on the Series 65? The exam covers the four NASAA outline sections: Economic Factors, Investment Vehicle Characteristics, Client Recommendations, and Laws & Regulations. This glossary defines the terms you'll encounter in each: alphabetized, plain-English, with chapter cross-links where the term ties to a course chapter.

A

Accredited investor(Ch. 5 · §5.4): An individual or entity that meets the income, net-worth, or professional-certification thresholds defined in Rule 501 of Regulation D, qualifying them to participate in private placements that are not registered with the SEC. Individual tests include $200,000 of income (or $300,000 with a spouse) for two years or $1 million in net worth excluding primary residence.
Accrued interest(Ch. 3 · §3.2): The interest a bond has earned since the last coupon payment date but has not yet paid. The buyer of a bond between coupon dates pays accrued interest to the seller and recovers it at the next coupon.
Administrator (state)(Ch. 5 · §5.4): The state official, agency, or commission charged with administering the Uniform Securities Act in a given state. The Administrator can require registration, conduct investigations, deny or revoke registrations, and issue cease-and-desist orders against violators.
Agent (USA)(Ch. 5 · §5.4): Under the Uniform Securities Act, an individual (other than a broker-dealer) who represents a broker-dealer or issuer in effecting or attempting to effect securities transactions. Agents must register in each state where they do business unless an exemption applies.
Annuity (variable)(Ch. 3 · §3.6): An insurance contract whose accumulation and payout values fluctuate with the performance of underlying separate-account subaccounts (typically mutual-fund-like portfolios). Variable annuities are securities and require both an insurance license and a securities registration to sell.
Asset allocation(Ch. 4 · §4.4): The process of dividing a portfolio among broad asset classes (equities, fixed income, cash, alternatives) in proportions that match the client's objectives, time horizon, and risk tolerance. Strategic allocation sets long-term targets; tactical allocation adjusts around those targets in response to market conditions.

B

Backup withholding(Ch. 4 · §4.3): A federal tax mechanism requiring payers to withhold a flat percentage from interest, dividends, and certain other payments when the payee fails to provide a correct taxpayer identification number or has been notified by the IRS of underreporting. The withheld amount is remitted to the IRS and credited to the payee at tax time.
Beta(Ch. 4 · §4.6): A measure of a security's or portfolio's volatility relative to the broad market. A beta of 1.0 means the security tends to move with the market; above 1.0 implies greater volatility than the market, below 1.0 implies less.
Blue-sky laws(Ch. 5 · §5.4): The collective name for state-level securities laws. The Uniform Securities Act is the model on which most are based. The phrase originated in early 20th-century court language describing speculative schemes with no more basis than "so many feet of blue sky."
Bond ladder(Ch. 4 · §4.4): A fixed-income strategy in which a portfolio holds bonds with sequential, evenly spaced maturities. As each bond matures, proceeds are reinvested at the long end of the ladder, smoothing reinvestment risk and providing predictable cash flow.
Broker-dealer(Ch. 5 · §5.4): A firm engaged in the business of effecting securities transactions for the accounts of others (broker function) or for its own account (dealer function). Federally regulated under the Securities Exchange Act of 1934 and supervised at the state level under the Uniform Securities Act.

C

Capital asset pricing model (CAPM)(Ch. 4 · §4.6): A model expressing the expected return on a security as the risk-free rate plus beta times the equity risk premium: E(R) = Rf + β(Rm − Rf). CAPM is the basis for measuring whether a portfolio's return compensates investors for the systematic risk it took.
Cash account(Ch. 4 · §4.3): A brokerage account in which the customer must pay in full for purchased securities by the settlement date. No borrowing or short-selling is permitted in a cash account, in contrast to a margin account.
Closed-end fund(Ch. 3 · §3.4): An investment company that issues a fixed number of shares through an initial public offering and then trades on a secondary market like a stock. Shares may trade at a premium or discount to the fund's net asset value depending on supply and demand.
Coincident indicator(Ch. 2 · §2.1): An economic statistic that moves in step with the broader business cycle, such as nonfarm payroll employment, industrial production, personal income less transfer payments, and manufacturing and trade sales. Coincident indicators help confirm where the economy is now, not where it is going.
Convertible bond(Ch. 3 · §3.2): A corporate bond that the holder may exchange for a predetermined number of shares of the issuer's common stock. Convertibles offer downside protection of a bond and upside participation if the underlying equity rises above the conversion threshold.
CUSIP(Ch. 3 · §3.1): A nine-character alphanumeric identifier assigned by the Committee on Uniform Securities Identification Procedures to uniquely identify a North American security. Used in trade clearing, settlement, custody, and reporting.
Custodian(Ch. 5 · §5.2): A regulated financial institution that holds client assets for safekeeping. Investment advisers with custody of client funds or securities face heightened requirements under Rule 206(4)-2 of the Investment Advisers Act, including a surprise annual examination by an independent public accountant.

D

Defined-benefit plan(Ch. 4 · §4.3): An employer-sponsored retirement plan that pays a specified retirement benefit, typically based on salary, years of service, and an actuarial formula. The employer bears the investment and longevity risk; the employee receives a predictable benefit.
Defined-contribution plan(Ch. 4 · §4.3): A retirement plan, such as a 401(k) or 403(b), in which the contribution is defined and the eventual benefit depends on contributions plus investment performance. The employee bears the investment risk.
Discount rate (Fed)(Ch. 2 · §2.2): The interest rate the Federal Reserve charges depository institutions that borrow short-term funds at the discount window. Adjusting the discount rate is one of the Fed's tools for influencing the cost and availability of bank reserves.
Discretionary account(Ch. 4 · §4.3): A brokerage or advisory account in which the firm or its representative is authorized in writing to enter trades for the client without the client's specific prior approval for each transaction. Discretionary authority must be in writing and is subject to heightened supervisory scrutiny.
Diversification (75-5-10 rule)(Ch. 5 · §5.6): An Investment Company Act of 1940 test that a fund must meet to call itself "diversified": at least 75% of total assets must be in cash, government securities, securities of other investment companies, or other-issuer positions limited to 5% of total assets and 10% of the issuer's outstanding voting securities.
Dollar-cost averaging(Ch. 4 · §4.4): An investment strategy of investing a fixed dollar amount at regular intervals regardless of price. Over a fluctuating market, this generally results in a lower average cost per share than fixed-share purchasing, though it does not guarantee a profit or protect against loss.

E

ERISA(Ch. 4 · §4.3): The Employee Retirement Income Security Act of 1974, the federal statute governing private-sector pension and welfare benefit plans. ERISA imposes fiduciary duties on plan trustees, sets minimum funding and vesting standards, and is administered by the Department of Labor.
Estate tax(Ch. 4 · §4.3): A federal (and in some states, additionally state-level) tax on the transfer of property at death. The federal estate tax applies only above a high lifetime exemption amount and is paid by the estate before assets pass to heirs.
Exchange-traded fund (ETF)(Ch. 3 · §3.4): An investment company whose shares trade intraday on a stock exchange like a stock, but whose holdings track a defined index, sector, or strategy. Most ETFs use an in-kind creation/redemption process that helps keep market price close to net asset value.
Exempt security(Ch. 5 · §5.4): A security that is excluded from the registration provisions of the Uniform Securities Act and the Securities Act of 1933 by the nature of the issuer or instrument: for example, US government securities, municipal securities, and securities of regulated banks and insurance companies. Anti-fraud provisions still apply.
Exempt transaction(Ch. 5 · §5.4): A transaction (rather than a security) excluded from state registration requirements based on the type of trade or counterparty: for example, isolated non-issuer transactions, transactions with institutional investors, and certain private placements. The exemption attaches to the transaction, not the security.

F

Federal Open Market Committee (FOMC)(Ch. 2 · §2.2): The Federal Reserve body that sets the target range for the federal funds rate and directs open-market operations. Composed of the seven Federal Reserve Board governors and five of the twelve regional Reserve Bank presidents.
Federal Reserve(Ch. 2 · §2.2): The central bank of the United States, established in 1913, with a dual mandate to pursue maximum employment and stable prices. Its principal monetary-policy tools are open-market operations, the discount rate, and reserve requirements.
Fiduciary duty (IAA)(Ch. 5 · §5.2): The duty an investment adviser owes to act in the best interest of clients, derived from Section 206 of the Investment Advisers Act of 1940 and reinforced by SEC v. Capital Gains Research Bureau (1963). It comprises a duty of care and a duty of loyalty, including full and fair disclosure of material conflicts.
Fixed annuity(Ch. 3 · §3.6): An insurance contract that credits a guaranteed minimum interest rate during the accumulation phase and pays a fixed-dollar benefit during payout. Because the issuing insurer bears the investment risk, fixed annuities are insurance products and are not securities.
Form ADV (Parts 1, 2A, 2B)(Ch. 5 · §5.2): The uniform registration form filed by investment advisers with the SEC or state regulators. Part 1 reports business and disciplinary information; Part 2A is the firm brochure delivered to clients; Part 2B is the brochure supplement disclosing the background of supervised persons providing advice.
Front-end load(Ch. 3 · §3.4): A sales charge deducted from a mutual fund investor's contribution at the time of purchase, typically associated with Class A shares. The load reduces the dollar amount actually invested and is paid to the selling broker-dealer.

G

GDP(Ch. 2 · §2.1): Gross domestic product: the total market value of all final goods and services produced within a country during a specified period. GDP is the principal measure of overall economic activity; sustained quarter-over-quarter declines define a recession.
General obligation bond(Ch. 3 · §3.2): A municipal bond backed by the full faith, credit, and taxing power of the issuing state or local government. Unlike revenue bonds, general obligation bonds are not tied to a specific project's cash flows.

H

Hedge fund(Ch. 3 · §3.5): A privately offered, lightly regulated pooled investment vehicle, typically organized as a limited partnership and offered only to accredited investors or qualified purchasers under exemptions to the Investment Company Act of 1940. Strategies range from long/short equity to global macro and event-driven arbitrage.
Holding-period return(Ch. 4 · §4.6): The total return an investor earns over the period an investment is held, expressed as the sum of income and price appreciation divided by the original investment. Unlike annualized return, holding-period return is not adjusted for the length of the period.

I

Index fund(Ch. 3 · §3.4): A mutual fund or ETF designed to replicate the performance of a specified market index by holding the same securities in the same proportions. Because trading is largely mechanical, index funds typically carry lower expense ratios than actively managed funds.
Inflation (CPI vs PCE vs PPI)(Ch. 2 · §2.3): A general rise in the price level. The Consumer Price Index (CPI) measures a fixed urban-consumer market basket; the Personal Consumption Expenditures (PCE) deflator weights changing consumption patterns and is the Fed's preferred gauge; the Producer Price Index (PPI) tracks wholesale prices received by domestic producers.
Investment Adviser (IA) and the ABC test(Ch. 5 · §5.1): Under the Investment Advisers Act of 1940, any person who, for compensation, engages in the business of advising others as to the value of securities or the advisability of investing in them. The three prongs (advice on securities, in the business, and for compensation) are commonly called the ABC test.
Investment Adviser Representative (IAR)(Ch. 5 · §5.1): A natural person associated with an investment adviser who provides investment advice or solicits clients on behalf of the adviser. IARs register at the state level under the Uniform Securities Act, even when their employing adviser is federally registered.
Investment Advisers Act of 1940(Ch. 5 · §5.1): The federal statute that regulates persons who provide investment advice as a business. It defines who is an investment adviser, requires registration of larger advisers with the SEC, and imposes anti-fraud and fiduciary obligations under Section 206.
Investment Company Act of 1940(Ch. 5 · §5.6): The federal statute regulating mutual funds, closed-end funds, and unit investment trusts. It governs how investment companies are organized, sold, and managed, and limits leverage, affiliated transactions, and conflicts of interest.
Investment policy statement(Ch. 4 · §4.4): A written document that records a client's objectives, time horizon, risk tolerance, asset-class constraints, return targets, and the responsibilities of the adviser. It serves as the governing reference against which subsequent recommendations and performance are evaluated.

J

Jensen's alpha(Ch. 4 · §4.6): The portion of a portfolio's return that exceeds what CAPM would predict given the portfolio's beta and the market's return. Positive alpha indicates the manager added value beyond compensation for systematic risk; negative alpha indicates the opposite.
Joint tenants with right of survivorship (JTWROS)(Ch. 4 · §4.3): A form of joint account in which two or more individuals own equal undivided interests, and on the death of one tenant the deceased tenant's interest passes automatically to the surviving tenant(s) outside of probate.

K

Keogh plan(Ch. 4 · §4.3): A tax-qualified retirement plan for self-employed individuals and unincorporated businesses, structured as either a defined-benefit or defined-contribution plan. Largely superseded in practice by the simpler SEP-IRA and solo 401(k), but still tested.
Know your customer (KYC)(Ch. 4 · §4.1): The regulatory requirement to obtain and update essential facts about every customer (identity, financial situation, investment objectives, and risk tolerance) before opening an account and before making recommendations. KYC underpins both suitability and anti-money-laundering compliance.

L

Large-cap(Ch. 3 · §3.1): A common shorthand for companies with the largest equity market capitalizations, generally above approximately $10 billion, though the threshold drifts with overall market levels. Large-caps tend to be more liquid and less volatile than mid- or small-caps.
Leading indicator(Ch. 2 · §2.1): An economic statistic that tends to change before the broader economy does, used to forecast turning points. Examples include building permits, average weekly manufacturing hours, the slope of the yield curve, and the S&P 500 index itself.
Liquidity(Ch. 3 · §3.1): The ease and speed with which an asset can be converted to cash at, or near, its prevailing market price. Cash and Treasury bills are highly liquid; private real estate and limited partnerships are illiquid.
Load (front-end vs back-end)(Ch. 3 · §3.4): A sales charge applied to a mutual fund purchase or redemption. Front-end loads (Class A shares) are deducted from the contribution at purchase; back-end or contingent deferred sales charges (often Class B shares) are charged at redemption and typically decline the longer shares are held.
Lowe v. SEC (1985)(Ch. 5 · §5.1): A Supreme Court decision holding that the publisher of a non-personalized investment newsletter was not an "investment adviser" under the 1940 Act. The case established the publisher's exclusion and helped define the boundary between regulated personalized advice and protected impersonal commentary.

M

Margin account(Ch. 4 · §4.3): A brokerage account in which the customer may borrow part of the purchase price of securities from the broker-dealer, using securities in the account as collateral. Initial margin requirements are set by Federal Reserve Regulation T; maintenance margin is set by FINRA and the firm.
Modern portfolio theory (MPT)(Ch. 4 · §4.5): Harry Markowitz's framework, published in 1952, for constructing portfolios that maximize expected return for a given level of risk by combining assets whose returns are not perfectly correlated. MPT introduced the efficient frontier and the use of variance as a risk measure.
Money market fund(Ch. 3 · §3.4): A type of mutual fund that invests in short-term, high-quality debt instruments (Treasury bills, commercial paper, repurchase agreements) and seeks to maintain a stable net asset value, typically $1.00 per share. Returns approximate prevailing short-term interest rates.
Municipal bond(Ch. 3 · §3.2): A debt security issued by a state, municipality, or qualifying authority. Interest on most municipal bonds is exempt from federal income tax and, for in-state holders, from state and local tax as well, making after-tax yield comparison important.
Mutual fund (open-end)(Ch. 3 · §3.4): An investment company that continuously issues and redeems its own shares at net asset value calculated once daily. Investors transact with the fund itself rather than with one another in a secondary market.

N

Net asset value (NAV)(Ch. 3 · §3.4): The per-share value of an investment company, calculated as total assets minus total liabilities divided by shares outstanding. Open-end mutual funds price purchases and redemptions at NAV; closed-end funds and ETFs trade at market prices that may differ from NAV.
No-load fund(Ch. 3 · §3.4): A mutual fund sold without a front-end or back-end sales charge. Under FINRA rules, a fund may not call itself "no-load" if it charges 12b-1 fees in excess of 0.25% of average net assets per year.
NRSRO (rating agency)(Ch. 3 · §3.2): A Nationally Recognized Statistical Rating Organization: a credit-rating firm registered with and overseen by the SEC under the Credit Rating Agency Reform Act of 2006. Their opinions are widely used to assess the credit quality of debt issuers and instruments.

O

Open-end fund(Ch. 3 · §3.4): An investment company that stands ready to issue and redeem its shares on a continuous basis at the next-calculated net asset value. The same legal entity as a mutual fund.
Option (call/put)(Ch. 3 · §3.7): A contract giving the buyer the right, but not the obligation, to buy (call) or sell (put) a specified quantity of an underlying security at a stated price on or before a stated date. The seller (writer) is paid a premium and assumes the corresponding obligation if exercised.
Order (USA)(Ch. 5 · §5.4): A formal action of a state Administrator under the Uniform Securities Act (such as a denial, suspension, revocation, cease-and-desist, or stop order) issued after notice and opportunity for a hearing. Final orders are subject to judicial review.
Over-the-counter (OTC)(Ch. 2 · §2.4): A decentralized market in which securities are traded directly between dealers rather than through a centralized exchange. The OTC market includes the Nasdaq Stock Market and lower-tier OTCBB and OTC pink markets.

P

Passive management(Ch. 4 · §4.4): An investment approach that seeks to match the performance of a benchmark index rather than to outperform it through security selection or market timing. Passive management is associated with lower turnover, lower expenses, and greater tax efficiency than active management.
Portfolio rebalancing(Ch. 4 · §4.4): The process of buying and selling holdings to restore a portfolio to its target asset-class weightings after market movements have caused them to drift. Rebalancing enforces a sell-high, buy-low discipline tied to the client's investment policy statement.
Preferred stock(Ch. 3 · §3.1): An equity security senior to common stock in the issuer's capital structure that pays a stated dividend and has priority over common stock in dividends and in liquidation. Most preferred is non-voting; common variants include cumulative, convertible, and participating preferred.
Present value(Ch. 4 · §4.5): The current worth of a future cash flow or stream of cash flows discounted at a specified rate. The discount rate reflects the time value of money and the riskiness of the cash flows; higher discount rates produce lower present values.
Prospectus(Ch. 5 · §5.5): The formal disclosure document filed as part of a registration statement under the Securities Act of 1933 and delivered to investors in a registered offering. It must contain all material facts about the issuer and the security necessary for an investor to make an informed decision.
Prudent investor rule(Ch. 5 · §5.2): The standard of care applied to fiduciaries managing trust or other fiduciary assets, requiring decisions to be evaluated in the context of the portfolio as a whole and the trust's objectives, not on the basis of any single holding viewed in isolation. Codified in the Uniform Prudent Investor Act of 1994.

Q

Qualified purchaser(Ch. 5 · §5.6): An individual or entity meeting the higher investment-asset thresholds defined in Section 2(a)(51) of the Investment Company Act of 1940: generally individuals owning at least $5 million in investments or entities owning at least $25 million. Qualified purchasers may invest in certain 3(c)(7) private funds.
Qualified retirement plan(Ch. 4 · §4.3): An employer-sponsored retirement plan that meets the requirements of Internal Revenue Code section 401(a) and ERISA, conferring tax-favored treatment on contributions, earnings, and distributions. Examples include 401(k), profit-sharing, and defined-benefit pension plans.

R

Real return (inflation-adjusted)(Ch. 4 · §4.6): The return on an investment after subtracting the rate of inflation, expressing the change in purchasing power. A nominal return of 6% in a 3% inflation environment is approximately a 3% real return.
Registered Investment Adviser (RIA)(Ch. 5 · §5.1): Common-usage shorthand for an investment adviser registered with the SEC or with one or more state securities Administrators under the Investment Advisers Act of 1940 and the Uniform Securities Act. The term is descriptive, not a separate legal status.
Regulation Best Interest (Reg BI)(Ch. 5 · §5.2): An SEC rule effective June 30, 2020 requiring broker-dealers and their associated persons to act in the retail customer's best interest when recommending securities or account types. Reg BI imposes care, disclosure, conflict-of-interest, and compliance obligations distinct from, and not equivalent to, the adviser fiduciary duty.
REIT(Ch. 3 · §3.5): A real estate investment trust: a corporation or trust that owns or finances income-producing real estate. To qualify for pass-through tax treatment, a REIT must distribute at least 90% of its taxable income as dividends and meet asset and income tests.
Required minimum distribution (RMD)(Ch. 4 · §4.3): The minimum amount an account owner must withdraw annually from most tax-deferred retirement accounts beginning at the age set by current law (73 under the SECURE 2.0 Act for those reaching that age in or after 2023). Failure to take an RMD triggers a substantial federal excise tax on the shortfall.
Roth IRA(Ch. 4 · §4.3): An individual retirement account funded with after-tax contributions whose qualified withdrawals, including all earnings, are tax-free. Eligibility to contribute is subject to income limits, and qualified withdrawals generally require both age 59½ and a five-year holding period.
Rule 506(b) / 506(c)(Ch. 5 · §5.5): The two principal private-placement safe harbors under Regulation D. Rule 506(b) prohibits general solicitation but permits up to 35 non-accredited but sophisticated investors; Rule 506(c) permits general solicitation but limits investors to verified accredited investors.

S

Sharpe ratio(Ch. 4 · §4.6): A reward-to-variability measure equal to (portfolio return − risk-free rate) divided by the portfolio's standard deviation. Higher Sharpe ratios indicate more excess return per unit of total volatility.
Sortino ratio(Ch. 4 · §4.6): A variant of the Sharpe ratio that uses downside deviation (the standard deviation of negative returns only) in the denominator. Sortino isolates harmful volatility and is preferred when return distributions are asymmetric.
Standard deviation(Ch. 4 · §4.6): A statistical measure of the dispersion of a series of returns around their mean, expressed in the same units as the returns. In portfolio analysis it is the most common single-number measure of total risk.
State registered IA(Ch. 5 · §5.3): An investment adviser registered with one or more state Administrators rather than the SEC. The federal vs state line is set by the National Securities Markets Improvement Act of 1996: advisers below the federal threshold (generally under $100 million in assets under management) register at the state level.
Suitability (FINRA Rule 2111)(Ch. 5 · §5.2): The FINRA standard requiring a broker-dealer or associated person to have a reasonable basis to believe a recommended transaction or strategy is suitable for the customer based on the customer's investment profile. Suitability is the broker-dealer recommendation standard predating Reg BI.

T

Tenants in common(Ch. 4 · §4.3): A form of co-ownership in which each owner holds a separate, undivided fractional interest that may be unequal and that passes by will or intestacy on death; it does not pass automatically to the surviving owners.
Time value of money(Ch. 4 · §4.5): The principle that a dollar today is worth more than a dollar in the future because of its capacity to earn a return. This principle underlies the present-value and future-value calculations central to bond pricing, retirement planning, and most valuation.
Treasury bill(Ch. 3 · §3.2): A short-term US government debt obligation with an original maturity of one year or less, issued at a discount and redeemed at face value. T-bills are considered the closest practical proxy for the risk-free rate in US-dollar applications.
Treynor ratio(Ch. 4 · §4.6): A reward-to-systematic-risk measure equal to (portfolio return − risk-free rate) divided by the portfolio's beta. Treynor evaluates excess return per unit of market risk and is most informative for well-diversified portfolios where unsystematic risk has been largely removed.

U

UGMA / UTMA(Ch. 4 · §4.3): State-law custodial accounts established under the Uniform Gifts to Minors Act or the broader Uniform Transfers to Minors Act, allowing an adult custodian to hold property for a minor. Assets are an irrevocable gift to the minor and become the minor's outright at the age of majority specified by state law.
Uniform Securities Act (USA)(Ch. 5 · §5.4): The model state securities statute drafted by the Uniform Law Commission that most US states have adopted, in whole or in part, as their blue-sky law. The USA defines key terms (security, broker-dealer, agent, investment adviser, IAR), governs registration, and grants the state Administrator enforcement authority.
Unit investment trust (UIT)(Ch. 3 · §3.4): A registered investment company that purchases a fixed, unmanaged portfolio of securities and issues redeemable units representing fractional interests in that portfolio. UITs have a defined termination date at which the underlying holdings are liquidated and proceeds distributed.

V

Variable annuity(Ch. 3 · §3.6): A tax-deferred insurance contract whose accumulation and payout values vary with the performance of underlying separate-account subaccounts. Because the contract owner bears the investment risk, variable annuities are securities and require both an insurance license and a securities registration to sell.
Volatility(Ch. 4 · §4.6): The magnitude and frequency of price fluctuations in a security or portfolio, most commonly measured by the standard deviation of returns. Higher volatility implies a wider range of possible outcomes around the expected return.

W

Wash sale rule(Ch. 4 · §4.3): An IRS rule disallowing a tax loss when an investor sells a security at a loss and acquires a substantially identical security within 30 days before or after the sale. The disallowed loss is added to the basis of the replacement security.
Wrap account(Ch. 5 · §5.2): An advisory account in which a single asset-based fee covers investment advice, brokerage execution, custody, and reporting in lieu of separate per-trade commissions. Wrap programs are subject to SEC Rule 204-3 disclosure obligations and require an Appendix 1 brochure.

Y

Yield curve(Ch. 2 · §2.4): A graph of yields on debt instruments of equal credit quality across a range of maturities, most commonly US Treasuries. A normal curve slopes upward; a flat curve suggests slowing growth; an inverted curve has historically preceded recessions.
Yield to maturity (YTM)(Ch. 3 · §3.2): The internal rate of return an investor would earn by holding a bond to maturity, assuming all coupons are reinvested at the same yield and the bond is held to redemption. YTM is the standard quoted yield for fixed-income securities.

Z

Zero-coupon bond(Ch. 3 · §3.2): A bond that pays no periodic coupon and is issued at a deep discount to face value, returning interest as the difference between purchase price and redemption value. Holders generally owe federal income tax annually on imputed ("phantom") interest even though no cash coupon is paid.

Related study tools

/certifications/series-65/cheat-sheet: printable outline weights, performance formulas, the major Acts, and the waiver designations.
/certifications/series-65/study-guide: chapter-by-chapter walk-through of the NASAA content outline.
/certifications/series-65/practice-exam: free 15-question diagnostic with full answer explanations.
/certifications/series-65/faq: the 25 questions Series 65 candidates ask most.

Sources

NASAA Exam Study Guides: the official content outline and study aids published by the North American Securities Administrators Association.
FINRA Series 65 page: enrollment, fees, and administrative details from the Financial Industry Regulatory Authority.
Investment Advisers Act of 1940 (full text, PDF): the federal statute governing investment advisers, the source of the IA definition (the ABC test) and the Section 206 anti-fraud and fiduciary provisions.

Study on a schedule, not on a feeling.

Every Series 65 page on this site is free to read and needs no account: the 8-week plan, the study guide, the glossary, the cheat sheet and a 15-question practice set. Leave your address if you want an ALAN account to go with them. The Series 65 course itself, with the full question bank and the exam simulator, comes with ALAN PRO.