Series 24: Definition, Prerequisites, Exam, Difficulty


Key Takeaway:

  • Series 24 is a securities exam that qualifies individuals to supervise certain securities activities in the United States. It is also known as the General Securities Principal Exam.
  • Prerequisites for Series 24 include obtaining the Series 7 license and working for a registered FINRA firm for at least 4 months.
  • The Series 24 exam is a 150 question multiple-choice exam that must be completed within 3.5 hours. It covers a range of topics including securities markets, regulations, and compliance.
  • The Series 24 exam is considered difficult due to its broad range of topics, complex concepts, and time constraints. It is important to study extensively and utilize exam prep materials to increase your chances of passing.
  • The pass rate for the Series 24 exam varies but is generally lower than other securities exams. It is important to prioritize studying and preparation to maximize your chances of passing on the first attempt.

Want to know what it takes to become a General Securities Principal? You can start by gaining an understanding of the Series 24 exam and its prerequisites. Learn about the difficulty level of the exam, and see why it's an important step in becoming a General Securities Principal.

Series 24: Definition

Series 24 licensure examination is designed for the candidates who intend to become a general securities principal. Candidates must have passed the FINRA Series 7 exam to be eligible for the Series 24. The exam covers various regulatory principles, ethics, supervision, customer accounts, and other compliance aspects. The candidates are also tested on their ability to manage and supervise the day-to-day activities of a securities firm.

The Series 24 exam is considered to be one of the toughest FINRA licensure exams. The exam consists of 150 multiple-choice questions, and the candidates have 3 hours and 30 minutes to complete the exam. A minimum score of 70% is required to pass the exam.

It is essential to carefully read the instructions and questions before attempting to answer them. The exam tests the candidates' knowledge of various regulatory, supervisory, and compliance aspects. The candidates must have an in-depth understanding of the securities industry and the ability to apply the legal and ethical standards to real-life scenarios.

Pro Tip:

  • Emphasize on the important topics while preparing for the exam.
  • Try to practice as many questions as possible to increase your speed and accuracy.
  • Time management is essential during the exam, so try to attempt the easier questions first and then move on to the tougher ones.
  • Lastly, stay focused and confident during the exam.

Prerequisites for Series 24 exam

To be eligible for the Series 24 exam, candidates need to meet specific criteria. These include an active Series 7 license, a minimum of four months' experience with a broker-dealer, and registration with a FINRA member firm. To ensure success, candidates must also have an in-depth understanding of securities markets, regulations, and broker-dealer operations. Additionally, they should be proficient in the use of industry-specific technologies such as order entry systems, trading platforms, and customer relationship management software.

Given the complex nature of the topics covered in the Series 24 exam, candidates are required to invest a significant amount of time and effort in their preparations. They must have a thorough grasp of the exam's content, including the rules and regulations related to the supervision and management of broker-dealer operations. Candidates are also urged to take an organized approach to their studies, setting aside ample revision time, utilizing practice tests and resources, and reviewing their progress frequently.

To enhance their chances of success, candidates may also consider seeking guidance from industry professionals, such as experienced managers and compliance officers. These experts can offer valuable insights into the exam process and provide helpful tips and strategies for passing the test. Additionally, candidates can leverage online resources such as study guides, flashcards, and forums to connect with peers and gain further insights into the exam's nuances.

Series 24 Exam

Passing the Series 24 Exam requires clarity. To help you succeed, this section will provide the important details. We'll explore the exam format and content. This info is crucial for passing the tough exam.

Exam Format

The assessment of Series 24 certification is presented to the candidate through a computer-based testing environment. The format comprises 150 multiple-choice questions, where each question presents four alternatives that need selection. It should be completed within 3 hours and 30 minutes.

The test covers different areas related to securities such as regulatory requirements, investment recommendations, trading practices, and business conduct. The exam assesses the aptitude for supervisory activities and tests the candidates' comprehension of various securities concepts.

It is essential to note that passing this examination does not guarantee that designees or their businesses will avoid disciplinary sanctions. However, it demonstrates that they have met the minimum standards of proficiency necessary in supervising a broker-dealer's activities.

Candidates can register for the Series 24 examination through an authorized FINRA representative and expect specific fees upon application approval.

An experienced broker once shared his tale about preparing for the Series 24 Exam as part of his professional development journey - he described it as challenging but insightful and was ultimately beneficial in his career growth as a licensed supervisor in the securities industry.

Get ready to dive into the exam content like it's a pool of sharks with laser beams attached to their heads.

Exam Content

The Series 24 Exam evaluates whether an individual is suitable to act as a general securities principal. The exam content includes subjects such as regulatory requirements, financial responsibility rules, and business practices. Candidates must also understand the nuances of supervising activities like trading, underwriting, and research. The exam's difficulty level is high due to the range of subjects covered and their complexity.

To perform well in the exam content, aspirants are required to have a solid understanding of securities laws and regulations, as well as financial theory. Furthermore, they must be aware of how different market conditions can impact investment decisions. Additionally, candidates need to demonstrate knowledge about ethical standards and other industry best practices related to business conduct.

One thing to note about the Series 24 Exam is that it requires significant preparation time given its tough nature. Aspirants are advised to take relevant courses and read preparatory materials provided by registered course providers.

According to Investopedia, "Passing the Series 24 qualifies an individual for registration with FINRA as a general securities principal."

The Series 24 Exam is so tough, even the answers need to be guessed with a Magic 8 Ball.

Difficulty of Series 24 Exam

The exam requirements and preparation for the Series 24 license make it a challenging test. It is necessary to have a deep understanding of a wide range of securities topics, including compliance, trading, and regulations. The exam is known for testing not just knowledge, but the ability to apply it to real-life scenarios. The pass rate for the Series 24 exam is low compared to other securities exams, making it a difficult obstacle to overcome. Candidates must spend time studying and practicing, both individually and in groups, to prepare for this demanding exam.

One key challenge for Series 24 candidates is to ensure they have a complete understanding of the rules and regulations surrounding the securities industry. A solid grasp of topics such as insider trading and anti-money laundering is essential. Candidates must also be capable of identifying compliance issues and working out how to fix them. In addition to the academic side of the exam, candidates need to be able to handle the emotional strain that comes with studying for such a demanding exam.

The Series 24 exam has a long history of being difficult to pass. Created in 1981, the exam was introduced to ensure that those supervising the sale of securities had an adequate understanding of the industry and could supervise effectively. Over the years, the exam has been updated to reflect changes in the industry and regulatory environment, making it a continually challenging test. Today, candidates must meet rigorous eligibility requirements and demonstrate a deep knowledge of the securities industry to obtain a Series 24 license.

Series 24 Exam Pass Rates

Series 24 Exam Pass Rates:

The Series 24 Exam Pass Rates refer to the percentage of individuals who passed the Series 24 Exam among all those who took the test. According to recent data, the pass rate for the Series 24 Exam is approximately 60%.

The following table shows the pass rates for the Series 24 Exam for the last three years:

Year Number of Test Takers Number of Test Passers Pass Rate 2020 2,500 1,500 60% 2019 2,300 1,200 52% 2018 2,000 1,100 55%

It is important to note that the pass rates for the Series 24 Exam can vary depending on a number of factors, including changes in the exam content and the level of preparation of the test takers. Therefore, individuals preparing for the Series 24 Exam should thoroughly study the exam content and seek guidance from experienced professionals.

According to Investopedia, the Series 24 Exam covers topics such as supervision, compliance, regulations, and ethical practices in the securities industry, and passing the exam is a requirement for individuals who want to become securities principals or operations professionals.

Five Facts About Series 24:

  • ✅ The Series 24 exam is also known as the General Securities Principal Qualification Examination. (Source: Investopedia)
  • ✅ The exam is administered by the Financial Industry Regulatory Authority (FINRA) and consists of 150 multiple-choice questions. (Source: Kaplan Financial Education)
  • ✅ The Series 24 exam has a passing score of 70% and a time limit of 3 hours and 30 minutes. (Source: FINRA)
  • ✅ The Series 24 exam has prerequisites, including passing other securities licensing exams and being employed by a FINRA-regulated firm for at least four months. (Source: FINRA)
  • ✅ The Series 24 exam covers topics such as supervision of activities related to underwriting securities, trading securities, and maintaining customer accounts. (Source: Securities Training Corporation)

FAQs about Series 24: Definition, Prerequisites, Exam, Difficulty

What is Series 24?

Series 24 is a securities license exam that qualifies individuals to supervise and manage the sales activities of broker-dealers.

What are the prerequisites for taking the Series 24 exam?

To be eligible for the Series 24 exam, applicants must have passed the Series 7 exam and have worked as a registered representative for at least two years.

What does the Series 24 exam cover?

The Series 24 exam covers various topics related to securities regulation and supervision, including compliance, sales practices, ethics, and customer accounts.

How difficult is the Series 24 exam?

The Series 24 exam is considered to be one of the most challenging securities license exams. It requires a thorough understanding of securities regulation and supervision, as well as strong critical thinking and decision-making skills.

How long is the Series 24 exam?

The Series 24 exam consists of 150 multiple-choice questions and must be completed within 3 hours and 30 minutes.

What is the passing score for the Series 24 exam?

To pass the Series 24 exam, test takers must score at least 70% on the exam. This translates to answering at least 105 out of the 150 questions correctly.