FINRA Series 24 – Exam Information
This exam is administered by The Financial Industry Regulatory Authority (FINRA).
$120 US. Note that this is the examination enrollment fee ONLY – other fees may also apply.
You must be sponsored by a FINRA member firm and must have already passed the series 7 or series 62 exam.
Each candidate will be allowed 210 minutes to complete the examination. This time limit has been designed to provide enough time for all candidates to complete the exam.
A score of 70% or higher is required to pass the Series 24 exam.
Key Concepts for Your Series 24 Study Guide
Review of Underwriting Agreements by FINRA
All underwriting agreements must be submitted to FINRA’s Corporate Finance Department for review, no later than one day after the filing of any registration with the SEC or with any state regulator. If the offering is not required to be filed at either the federal or state level, the agreement must be filed with FINRA at least 15 business days prior to the anticipated offering date. In most cases, the agreement is submitted by the managing underwriter. FINRA will review the maximum total compensation to the underwriters to ensure that the underwriter’s compensation is fair and reasonable in light of the size and complexity of the offering. The submission must include:
Handling and Displaying Customer Limit Orders
If a market maker accepts customer limit orders it must handle the order in accordance with The Limit Order Display Rule. If a market maker accepts a customer’s limit order that would improve its quoted price the market maker must update its quote to reflect the customer’s limit order. A market maker is required to update its quote within 30 seconds of receiving the customer’s order. The 30-second time frame only applies to normal market conditions and does not include the opening or reopening of a security after a halt.
The Securities Act of 1933 was the first major piece of securities industry regulation that was brought about largely as a result of the stock market crash of 1929. Other major laws were also enacted to help prevent another meltdown of the nation’s financial system such as The Securities Exchange Act of 1934, but we will start our review with the Securities Act of 1933 as it regulates the issuance of corporate securities.
The Securities Act of 1933 was the first major piece of securities industry legislation and it regulates the primary market. The primary market consists exclusively of transactions between issuers of securities and investors. In a primary market transaction, the issuer of the securities receives the proceeds from the sale of the securities.