Should I take the series 23 or Series 24 Exam?

In this article we are going to review the differences between the Series 23 Exam and the Series 24 Exam. We will cover Exam eligibility and the pros and cons to taking either Exam.  

What is the difference between The Series 23 & Series 24 Exam?

The short answer to this question is, the series 23 is a much smaller exam. Knowing the difference between these two Exams can be a huge time saver and help individuals become licensed faster. If your goal is to become a General Securities Principal, this overview will help you understand your options. 

What Can a General Securities Principal Do ?  

A General Securities Principal licence allows the registered person to supervise all aspects of a general securities broker dealer. These activities include: 

1. Retail & institutional sales 
2. Advertising 
3. Trading & market making 
4. Investment banking 

While the license allows individuals to supervise the above activities, many people take the Exam to become branch office managers.  Others take the Exam to open their own broker dealers. Being a General Securities Principal opens many doors throughout the financial industry.

There are two ways to achieve General Principal Registration. The first is to take the Series 24 Exam. This Exam known as the General Securities Principal Examination, is the route that must be taken by individuals who do not meet the prerequisites of the Series 23 Exam. 

The Series 24 Examination is a 150 question Examination. It tests candidates’ knowledge of the critical information necessary to function as a General Securities Principal. It has a time limit of 3 hours and 45 minutes. The Series 24 Exam is widely believed to be one of the most difficult Exams administered by FINRA. 

The second way to become a General Securities Principal is to take the Series 23 Exam. However, this option is only available to those individuals who meet the stringent prerequisites to take the Exam. 

Who Can Take The Series 23 Exam? 

The Series 23 Exam is considered to be a top off principal registration Examination. It is designed for those individuals who have passed the Series 9 & 10 Exams. Registered Sales Supervisors may take the Series 23 Exam to qualify as a General Securities Registered Principal.  Once all three Exams have been completed individuals will be licensed to supervise:   

1. Retail & institutional sales 
2. Advertising 
3. Trading & market making 
4. Investment banking 

The Series 23 Exam is a much smaller Exam. It consists of 100 questions. That is 50 questions less than 150 on the Series 24 Exam. Many people find this to be a big time saver and a lot less content to worry about. The two most challenging sections of the Series 24 Exam are the Supervisions of Trading and Market Making and Supervision of Investment Banking. Each section on the Series 24 Exam contains 32 questions. These topics cover 28 questions each on the Series 23 Exam. 8 questions may not seem like a lot, but when there are 8 less extremely difficult questions on an Exam, it makes a big difference. The biggest reduction on content is seen in the Supervision of General Broker Dealer Activities and Supervision of Retail and Institutional Customer Activities. These sections contain 45 questions and 32 questions each. on the Series 24 Exam. On the Series 23 Exam, these sections cover 26 and 12 questions respectively. 

Should I take the Series 23 or Series 24 Exam

The option to take the Series 23 Exam is only available to those who have passed the Series 9 & 10 Exam. So if you are not already a licensed General Securities Sales Supervisor, you must take the Series 24 Exam. If you have passed the 9 & 10, you have the option of taking the Series 23. So if you take the 100 question Series 23 Exam or the 150 question Series 24 Exam, you end up with the exact same registration status. 

Detailed Series 24 vs Series 23 Exam Comparison

We hope this article helps you understand your options.

Good Luck On Your Exam 

The Securities Institute of America