Series 24 Exam: Everything You Need To Know

The Series 24 Exam is the General Securities Principal Exam. The exam is administered by FINRA. It assesses understanding of the information needed to be a licensed General Securities Principal.

A Series 24 license takes your financial services career to the next level.  You must get a Series 24 license if you:

• Become a department supervisor for your broker dealer
• Become the manager of an OSJ
• Want to earn overrides on the production of other agents
• Work in compliance
• Supervise or train agents

A series 24 license will allow you to move up the corporate ladder at your firm. You will be licensed to supervise business in all general securities products including:

• Equity & Debt Securities
• Open & Closed End Investment Company Shares
• Mortgage Backed Securities 
• Direct Participation Programs  
• Real Estate Investment Trusts (REITS)
• Municipal Securities
• Municipal Fund Securities
• Government Securities

 Once you have obtained a series 24 license, you may supervise:

• Registered persons
• Retail operations
• Trading departments
• Investment banking

You will also be licensed to:

• Review and approve retail communication
• Review and approve new accounts and orders. 

Passing the series 24 exam and becoming series 24 licensed is a significant accomplishment.

The Series 24 Exam consists of 150 scored multiple-choice questions. The exam has a time limit of 3 hours and 45 minutes.  Each Series 24 exam will contain experimental questions. As a result, the total number of questions will be 155-160. These questions are not identified during the test. Nor do they count towards the candidate’s final score. Each exam provides more time for test takers to answer these questions.

The passing grade for the Series 24 exam is 70%. Test takers must answer at least  105 of 150 questions correctly

Each test provides enough time for candidates to answer every question presented. The time limit on the series 24 exam is 3 hours and 45 minutes. This translates into 1.5  minutes per question. Test takers who have challenges interpreting questions, may find themselves pressed for time. Rushing to answer every question has a negative impact on performance. Ensure you have the ability to complete the test in the time allotted. To do this you must take 150 question  simulated exams. Taking practice exams is a big part of any candidate’s exam preparation. The questions presented are challenging. Students must have a deep understanding of the critical information required to pass.

The Series 24 Exam tests the candidates’ knowledge of critical functions.  These are the functions a general securities principal must perform. The questions will on the series 24 will cover:

• Hiring Employes 
• Form U4, U5 & U6
• Registration Requirements
• Continuing Education Requirements
• Outside Business Activities
• Private Securities Transactions 
• Political Contributions
• Annual Compliance Meetings 
• Anti-money Laundering (AML)
• New Product Training 
• Investment Banking 
• Research Reports
• Trading and Market Making
• Broker Dealer FInancial Responsibilities
• Retail Communications 
• Customer Complaints 
• Branch Offices & OSJs
• The Role of the Principal

The FINRA official outline breaks down the exam as follows

1. Supervision of Registration of Broker-Dealer and Personnel Management Activities – 9 questions
2. Supervision of General Broker-Dealer Activities – 45 questions
3. Supervision of Retail and Institutional Customer-related Activities – 32 questions
4. Supervision of Trading and Market Making Activities – 32 questions
5. Supervision of Investment Banking and Research – 32 questions

You must make an investment in your professional development. Your Series 24 license qualifies you as a general securities principal. Many Series 24  licensed principals enjoy lucrative and successful careers. If you have to pay out of pocket, the costs are relatively low. This is true compared to other certifications and college expenses. Some employers pick up or reimburse the costs.  The cost to take the Series 24 Exam include:

• Training materials
• Testing fees
• Registration fees.

Our most comprehensive training package for the Series 24 Exam is $309. This comes with everything you need and includes free shipping. Other providers charge as much as $600 for similar packages.

The testing fee for the Series 24 exam is $175. 

The series 24 exam is one of the most challenging FINRA exams. Obtaining a Series 24 license takes focus and dedication.  Students should not take this test lightly. You must prepare to take the exam and should make it a top priority. Start by reading a textbook completely with a highlighter. You must read the book, there are no shortcuts and students need to understand this. Watch each video class that corresponds to the chapters in the book. This will provide you with more information on the concepts covered in each chapter. You must clear your schedule, shut off your phone and focus. In addition to the knowledge required,  you must master the application. Do this by taking thousands of practice questions. We recommend at least 80 – 100 hours of preparation to ensure you pass your series 24 exam and become licensed as a general securities principal.

#1 Supervision of Trading and Market Making

This section of the Series 24 Exam presents a lot of challenges for test takers. Many industry professionals have never sat on a trading desk. In fact, many have never even seen one. As a result, the complex questions dealing with handling and displaying customer limit orders are completely foreign to them. The series 24 exam requires you to know every aspect of trade reporting and the workings of the NASDAQ Market Center.  Mastering this information will help make sure you pass your exam. Our Series 24 textbook and video class lectures show you how to answer these challenging questions. 

#2 Supervision of Investment Banking & Research 

This is another challenging section on the Series 24 exam. Again these are areas many test takers never deal with. The rules and regulations governing the issuance of corporate securities are heavily tested. You must commit them to memory. Syndication operations and the role of FINRA’s corporate finance department are key concepts to focus on. The creation and distribution of research reports is another area to master.  Understanding analyst certifications and conflicts of interest is critical to your success on exam day.    

#3 Supervision

General supervision questions tend to be an area students find challenging. These questions are also the area where many students use too much time. These questions require an understanding of rules. And the ability to subjectively apply the rules. A number of scenario based questions require a mastery of the regulations.  Test takers are frequently stuck with two answer choices that seem correct. Being able to select the most correct choice is absolutely critical. The concepts must be committed to memory. To answer these questions quickly, we have designed a course that makes this easy. Our course contains feedback from thousands of series 24 students. We show you how to answer these challenging questions.

All candidates must appear at an approved testing center to take the Series 24 Exam. Prometric test centers are available throughout the US. In fact, Prometric has more than 3,000 test centers.  Many exam centers are open 7 days a week. Students may schedule the exam at any location on any day that the center is open. To schedule an exam appointment, visit the prometric website.

You will receive your result of the exam immediately upon completion. Your results are displayed on the screen. You will get a certified copy of the results from the exam center. The passing score for the Series 24 Exam is 70%. Candidates who pass will not receive a numerical score. The exam report only states that the student achieved a passing grade. This is evidence that the student passed the Series 24 Exam. Students who do not achieve a passing score receive a numeric score for the exam. A range of the performance in each scored section is included in the report.

Students who do not pass the exam must wait 30 days before retaking the exam. During this time it is crucial to maintain the current level of proficiency. Make a detailed account of the exam. Make notes on the entire experience, especially areas of difficulty. A second unsuccessful attempt will result in another 30 day waiting period. A third unsuccessful attempt results in a 6 month waiting period.

Your series 24 license in addition to those licenses you have already obtained. The series 7 is a prerequisite to take the series 24 exam. By the time you sit for the series 24 exam chances are you have completed all your other licensing requirements. The following shows all the prerequisite exams. The principal level registration obtained after passing the series 24 exam are:.

• SIE + Series 7 = General Securities Principal
• SIE + Series 57 = Securities Trader Principal
• SIE + Series 79 = Investment Banking Principal
• SIE + Series 82 = Private Securities Offerings Principal
• SIE + Series 86 and 87 = Research Principal

It is very important to choose your Series 24 study material carefully. Quality study material produced by a professional level publisher is key. At a minimum your training materials should contain:

• A comprehensive textbook

• Well produced video training classes

• Challenging test banks

Always start with the textbook. Our Series 24 textbook is the foundation of our learning system. This book has everything you need to be successful.  Our textbooks are comprehensive and easy to follow. We strongly recommend that every student read the books completely. Take notes on key points. This will ensure you know more than the basics, it will ensure you know the facts. 

Our Series 24 video lectures follow our textbooks chapter by chapter. Each lecture provides more details on the content contained in the reading. Different examples show you how the concepts are tested. Best of all, we include feedback from thousands of actual Series 24 test takers. This will help you master the material. Make sure you watch each video lecture to ensure complete understanding. Every video lecture is followed by a quiz. This tests your immediate comprehension of the material.

From there move to the practice tests. Take topic focused custom quizzes. Go back to the videos and chapters in the textbook to firm up areas of weakness.  Now you are ready to take simulated final exams.  Take as many as you can and keep track of your results. Take as many as you can and keep track of your results. The more you take, the more prepared you will be.

Our Series 24 study material will ensure your success on exam day. Complete with a comprehensive physical textbook, Video lectures and challenging test banks. We are so confident in our Series 24 training course. that we offer you a money back greenlight pass guarantee. Review our Series 24 Exam prep features here