What is the Series 24 Exam?
Once a candidate passes the Series 24 Exam, they will be eligible to register as a general securities principal with FINRA and perform the duties associated with that role. They will also be required to maintain their qualification by completing continuing education requirements and staying up-to-date with industry regulations and best practices.
Definition, Purpose, and Scope
The purpose of the Series 24 Exam is to ensure that individuals who hold this designation have the necessary knowledge and skills to effectively supervise the sales and trading activities of a brokerage firm. The exam covers a wide range of topics, including securities regulations, investment products, compliance, and ethical practices.
The Series 24 Exam covers a broad range of topics related to the securities industry. It tests candidates’ knowledge of federal securities laws and regulations, including the Securities Act of 1933, the Securities Exchange Act of 1934, and the Investment Advisers Act of 1940. It also covers topics such as trading and market-making activities, customer accounts and transactions, and the supervision of registered representatives.
The exam consists of 150 multiple-choice questions, which must be completed within a time limit of 3 hours and 45 minutes. The passing score for the Series 24 Exam is 70%, and candidates must also pass the Securities Industry Essentials (SIE) Exam in order to be eligible to take the Series 24 Exam.
Once an individual passes the Series 24 Exam, they are eligible to work as a general securities principal and are responsible for supervising the activities of registered representatives within their firm. This includes ensuring compliance with securities laws and regulations, conducting audits and inspections, and resolving customer complaints and disputes.
|Number of Questions
|Series 24 Exam
|3 hours and 45 minutes
Prerequisites for Taking the Series 24 Exam
Before taking the Series 24 Exam, candidates must meet certain prerequisites to ensure they have the necessary knowledge and experience to successfully complete the exam. These prerequisites include:
1. Registration as a General Securities Principal
In order to be eligible to take the Series 24 Exam, candidates must first be registered as a General Securities Principal. This registration is obtained by passing the Series 24 Exam and meeting certain other requirements set forth by the Financial Industry Regulatory Authority (FINRA).
2. Completion of Required Coursework
Candidates must also complete certain coursework before they can take the Series 24 Exam. This coursework covers a variety of topics related to securities regulation, supervision, and compliance. It is designed to provide candidates with the knowledge and skills necessary to effectively perform the duties of a General Securities Principal.
3. Industry Experience
In addition to the registration and coursework requirements, candidates must also have a certain amount of industry experience before they can take the Series 24 Exam. The specific experience requirements vary depending on the candidate’s previous roles and responsibilities in the securities industry.
Overall, the prerequisites for taking the Series 24 Exam ensure that candidates have the necessary qualifications and experience to effectively perform the duties of a General Securities Principal. By meeting these prerequisites, candidates can demonstrate their knowledge and commitment to maintaining high standards of professionalism and ethical conduct in the securities industry.
Educational Requirements and Experience
In order to take the Series 24 Exam, candidates must meet certain educational requirements and have relevant work experience. These requirements are set by the Financial Industry Regulatory Authority (FINRA), the organization that administers the exam.
While a degree is not mandatory, it can demonstrate a candidate’s commitment to the field and provide a solid foundation of knowledge. Additionally, certain employers may require a degree as a prerequisite for certain positions or promotions.
In addition to educational requirements, candidates must also have relevant work experience in order to be eligible to take the Series 24 Exam. The exact experience requirements can vary depending on the candidate’s role and the specific regulations of their jurisdiction.
Generally, candidates must have at least four years of experience working in a supervisory capacity in the securities industry. This experience should involve direct responsibility for the supervision of other registered representatives and the management of a broker-dealer firm.
It is important to note that the experience requirement is not limited to a specific job title or position. Candidates may gain the necessary experience through a variety of roles, such as compliance officers, branch managers, or operations managers.
Overall, the educational requirements and experience necessary to take the Series 24 Exam ensure that candidates have a strong foundation of knowledge and practical experience in the securities industry. This helps to ensure that individuals who pass the exam are well-equipped to fulfill the responsibilities of a general securities principal.
Difficulty Level of the Series 24 Exam
The Series 24 Exam is known for its challenging nature and requires a significant amount of preparation. As a result, individuals who wish to take this exam should be prepared to dedicate a substantial amount of time and effort to studying.
In addition to the extensive content, the Series 24 Exam also tests candidates’ ability to apply their knowledge in real-world scenarios. The exam includes multiple-choice questions as well as case studies that require candidates to analyze and interpret information. This practical component adds an extra layer of complexity to the exam and requires candidates to think critically and make informed decisions.
Another factor that contributes to the difficulty of the Series 24 Exam is the time constraint. Candidates are given a limited amount of time to complete the exam, which adds pressure and requires them to manage their time effectively. This time constraint further challenges candidates’ ability to think quickly and accurately under stress.
Given the challenging nature of the Series 24 Exam, it is recommended that candidates utilize a variety of study materials and resources to prepare. This may include textbooks, online courses, practice exams, and study groups. Additionally, candidates should create a study schedule and allocate sufficient time for each topic to ensure comprehensive preparation.
Emily Bibb simplifies finance through bestselling books and articles, bridging complex concepts for everyday understanding. Engaging audiences via social media, she shares insights for financial success. Active in seminars and philanthropy, Bibb aims to create a more financially informed society, driven by her passion for empowering others.