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Series 42 Exam Meaning & Definition
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Definition of Series 42 Exam
The Registered Options Representative exam, or Series 42 exam, is both created and administered by FINRA. This exam is designed to test the knowledge of those individuals who wish to become licensed options representatives for a FINRA firm.
Topics for the Series 42 exam include:
- Terminology, Types of Options, Investment Strategies and Taxation – 20 Questions
- Handling Options Accounts – 14 Questions
- Trading and Settlement Practices – 10 Questions
- Qualifications and Business Conduct of Registered Options Representatives, Reporting and Recordkeeping Requirements – 6 Questions
This is a 50 question, multiple-choice exam that must be completed within 90 minutes. To be successful candidates must score a minimum of 70% of their Series 42 exam. The cost for this test is $70.00. Keep in mind this price only reflects the cost of the test its self and does not include any additional registration or testing fees.
Applying "Series 42 Exam" to Securities Exams:
The Series 42 exam can be taken year round at approved testing centers. While this test is available year round, it cannot be taken on Sundays. Candidates should be aware of this fact and keep it in mind when they are scheduling their exam and choosing their testing center.
Please be aware that the Series 42 exam has co-requisites of either the Series 62 or the Series 72 license. Meaning that successful candidates will have to pass the Series 42 exam along with either the Series 62 or Series 72 exams to obtain their license.