What is some important information about the Series 7 and Series 24 licenses? What can the exams and studying tell us about license holders?

The Series 7 exam is a securities industry qualification exam that is administered by the Financial Industry Regulatory Authority (FINRA). It is also known as the General Securities Representative Exam. The Series 7 exam is required for individuals who want to become registered representatives and work in the securities industry.

The Series 7 exam covers a wide range of topics, including:

  • Economic factors and business information
  • Options
  • Municipal and corporate securities
  • Investment banking and underwriting
  • Trading and markets
  • Customer accounts
  • Trading activities and risk management
  • Tax laws and regulations

To sit for the Series 7 exam, individuals must be sponsored by a FINRA member firm or an approved training organization. The exam consists of 260 multiple-choice questions, and candidates are given six hours to complete it. To pass the exam, candidates must correctly answer at least 72% of the questions.

The Series 24 exam is a securities industry qualification exam that is also administered by FINRA. It is also known as the General Securities Principal Exam. The Series 24 exam is required for individuals who want to become principals of a FINRA member firm and supervise the activities of registered representatives.

The Series 24 exam covers a wide range of topics, including:

  • Supervision of registered representatives
  • FINRA rules and regulations
  • Net capital and customer protection rules
  • Trading and market making activities
  • Corporate finance and investment banking
  • Municipal securities activities
  • Compliance with federal securities laws and regulations

To sit for the Series 24 exam, individuals must be sponsored by a FINRA member firm. The exam consists of 125 multiple-choice questions, and candidates are given four hours to complete it. To pass the exam, candidates must correctly answer at least 70% of the questions.

If an investor’s advisor holds the Series 7 or Series 24 licenses, it means that they have passed a rigorous industry qualification exam and are qualified to work in the securities industry. These licenses demonstrate that the advisor has a broad understanding of the securities industry and is knowledgeable about the rules and regulations that apply to their work. Additionally, holding these licenses may indicate that an advisor is committed to continuing their education and staying current on industry developments.