Definition of Series 86/87 in FINRA Exams


Key Takeaway:

  • The Series 86 and 87 exams are required for individuals who wish to become research analysts or research department supervisors in the financial industry.
  • These exams have specific requirements for registration and educational/professional background, and cover various topics related to financial analysis and markets.
  • Passing these exams is important for career opportunities and regulatory compliance, and requires thorough preparation and practice using study materials and practice tests.

Are you looking to become a financial professional? The Series 86 and 87 Finra Exams are a great starting point. Crucial for securities professionals, these exams test your knowledge and expertise in key areas of the industry, helping you secure a reliable career.

Series 86/87 Exams Definition

To get to know Series 86/87 exams and the advantages they offer, you need to look into them more thoroughly. Series 86 exam is for those who want to inspect the money side of the business. On the other hand, Series 87 exam is great for those concentrating on selling research. This way, you can consider the effects of taking one of the exams, and make plans accordingly.

What is the Series 86 Exam?

Series 86 Exam is a finance industry certification exam administered by FINRA, which certifies individuals for Research Analyst positions in the industry. This exam primarily tests the candidate's knowledge and understanding of fundamental financial analysis tools and methodologies, including valuation techniques, financial statement analysis etc. It also evaluates their research skills, operational procedures for investment management, and legal regulations surrounding investments. Passing this test is crucial for advancing one's career in research analysis.

To become eligible to take Series 86 Exam, an individual must first pass the Series 7 General Securities Representative Exam. However, it s worth noting that passing Series 86 does not automatically qualify an individual to operate as a Research Analyst in the securities industry. Instead, it s usually paired with another qualification test called Series 87. Both exams together validate an individual s perfect credentials for performing as a Research Analyst.

One approach that can help you crack these two tests when taken together is to pace yourself correctly over longer periods of study duration instead of cramming your revision into short periods before exams. Long-term memory retention practice helps you recall what you learn more effectively than last-minute learning.

Another useful technique is memorization - understanding key formulae or visualizing them symbolically will help you gain time during the exam significantly increasing your chances of providing correct answers on difficult questions before running out of time.

Overall, hard work and concentrated focus are essential qualities needed to pass these exams and become recognized as a certified Research Analyst in the securities industry. Get ready to flex your financial muscle and prove your knowledge with the Series 87, because nothing says 'I understand finance' like passing a rigorous exam.

What is the Series 87 Exam?

The Series 87 Exam is a specialized exam provided by FINRA that allows individuals to become research analysts in a regulatory environment. The exam aims at testing an individual's knowledge in conducting an impartial and independent analysis of securities.

Series 87 Exam evaluates the professional abilities of candidates regarding investment recommendations, market trends, and financial security analyses. It is a requisite license that enables them to provide research services, including rating, tagging along trading strategy formation with broker-dealers.

Candidates appearing for the exam must have completed the Series 86 Exam previously as it confirms they are thorough with the rules and regulations determined by the SEC in selling securities.

Though there is no experience requirement, applicants need to be associated with a FINRA-member organization before enrolling for the examination. Once they qualify as licensed professionals after cracking both series exams - Series 86/87, they can work independently and give prompt and informed ratings on an asset or an entity while also evolving corporate strategies.

Despite its significance, only specific job roles require candidates to clear this test. Upon passing this challenging assessment type conducted online within 105 minutes by answering 50 questions, Industry Needs Demand (IND) permits professionals to present insights into regulation to brokers and traders and make appropriate judgments.

A True History about this evaluation involved a delicacy where journalists disputed whether being licensed as research analysts post-completing series exams like these was fundamental or not. Cases like Merrill Lynch paying $100m compensation confirmed otherwise.

If you thought high school was tough, get ready for the real test of adulthood with the requirements for taking the Series 86/87 exams.

Requirements for Taking the Exams

To take the Series 86/87 Finra exams, you must register and pay fees. Plus, you must have the correct education and work experience. In this section, we'll look at these two parts in depth. Both of these are key to become eligible to take the tests.

Registration and Fees

When preparing to take the Series 86/87 exams, interested parties must complete a registration process and pay associated fees. Examinees must register with FINRA and a member firm, who may charge additional fees or reimburse for exam costs.

To complete registration, individuals must provide personal information and take an SRO qualification exam within four months of registering. Once registered, examinees may schedule and take the exam at their own discretion.

It's worth noting that after three attempts, candidates must wait 180 days from the date of their most recent attempt before retaking the exam. Additionally, questions on the exams may cover regulations set forth by several governmental bodies in addition to FINRA rules.

Interestingly, before FINRA was established in 2007, conducting a thorough background check on all employees of member firms was not required. But this changed following several high-profile financial scandals.

Your education and professional background may not determine your success on the Series 86/87 exams, but it will definitely determine your parents' level of disappointment if you fail.

Educational and Professional Background

Having a strong academic and work background is crucial for individuals preparing to take the Series 86/87 exams. These exams are designed to evaluate the knowledge and understanding of candidates when it comes to analyzing and evaluating financial statements, industry trends, economic concepts, corporate finance, and portfolio theory.

Candidates with a college degree in finance or business-related fields have an advantage when taking these exams. Such backgrounds provide them with the required foundation and fundamental knowledge needed to succeed in the exam. Individuals with relevant work experience can also do well since their experience would have helped them develop skills necessary for performing functions like investment advisory services or research analysis.

To further strengthen their chances of passing the Series 86/87 exams, candidates should consider seeking additional training or certifications from reputable institutions. Continuing education opportunities could prove beneficial since they will help familiarize candidates with changing regulations, policies, and developments in securities markets. Moreover, access to professional forums and discussion groups can facilitate discussions on best practices, emerging trends, analytical frameworks that will augment preparation efforts for the exam.

Overall developing strong fundamentals through academic qualifications coupled with relevant work experiences can boost your success rate at cracking the Series 86/87 exams. Building on these experiences through additional training and certification is sure to improve your confidence level and test-taking abilities.

In the world of finance, the only thing scarier than the exam format is the thought of failing and being stuck in retail for the rest of your life.

Exam Format and Content

Study up on the Series 86/87 exams! Delve into the details of each exam. Uncover the specifics of the Series 86 test and Series 87 test for a better understanding of what to expect.

Series 86 Exam Details

The Series 86/87 exams are FINRA's requirements for professionals who aim to work as research analysts. This two-part exam tests the candidates' skills and knowledge of fundamental analysis, stock valuation techniques, financial modeling, and data analysis. Passing this exam is crucial to become eligible for roles such as a research analyst or an associate on the equity side in a sell-side firm.

To pass the Series 86/87 exams, candidates need to score at least 73% on both parts. The Series 86 exam is composed of calculating financial ratios and valuations, while the Series 87 focuses on analyzing data sets and writing research reports. Candidates are given four hours for each part of the test.

In addition to these technical skills, candidates also need strong written and communication skills. Therefore, in the Series 87 exam, one essay question measures a candidate's report writing abilities.

Rumors of cheating during FINRA exams have been circulating for several years. For example, a broker from Colorado Springs was caught looking up exam answers on their phone during a bathroom break in November 2018. As an alternative to test center misconduct like this scenario FINRA now offers remote proctoring exams.

Get ready to cram more information into your brain than a clown car at a circus, because the Series 87 exam is coming!

Series 87 Exam Details

The Series 87 Exam is a Finra exam that evaluates candidates' knowledge of financial products and securities industry rules and regulations. The test is designed for professionals who want to become research analysts or participate in investment banking activities. The exam format consists of 50 multiple-choice questions, covering topics such as capital markets, securities analysis, corporate finance, and regulatory compliance. Candidates have 90 minutes to complete the test and must score at least 73% to pass. Unique details about this exam include its focus on equity research as opposed to general securities knowledge tested by other FINRA exams such as the Series 7 Exam. Furthermore, candidates can only attempt the Series 87 Exam after passing the Securities Industry Essentials (SIE) Exam. Don't miss out on opportunities in the finance industry because you lack necessary credentials. Take action by preparing for the Series 87 Exam with study materials and practice tests available through FINRA or reputable third-party providers. Passing these exams is more important than remembering your own name, especially if you want to avoid a career in oblivion.

Importance of Passing the Exams

Passing the Series 86/87 exams unlocks career possibilities. It allows you to become a research analyst, salesperson, or a trader. Plus, these exams meet regulatory compliance standards. That's why taking them is so important.

Careeer Opportunities

Having in-depth knowledge and passing the Series 86/87 Exams is essential to open doors for various career horizons. Passing these exams helps professionals to venture into roles like research analyst, investment banker, or portfolio manager, among others. It enhances their credibility and employability in the financial industry.

These exams serve as an important milestone for anyone looking to reach higher positions in finance. It provides a comprehensive understanding of security analysis, market regulations, ethics, and relevant financial concepts. Having a certification goes beyond qualifying for jobs but enables professionals with practical skills that can help them succeed within the industry.

Passing the exam is critical in securing reliable positions, promotion opportunities, and salary increments in financial organizations globally. Besides traditional benefits such as getting hired or promoted quickly, it broadens your skillset and validates you after acquiring top-notch content knowledge from the course modules.

Pro Tip: Preparing ahead of time and rehearsing for these exams is crucial to accomplish marvelously. The foundation of obtaining qualifications begins with sound preparation with study materials explicitly designed for these types of exams - make sure to practice consistently!

Regulatory compliance is like flossing - nobody likes doing it, but it's necessary to avoid a painful visit from the dentist.

Regulatory Compliance

Complying with regulatory standards is necessary to ensure adherence to established guidelines. It includes following legal, ethical, and professional principles while conducting business operations to protect the welfare of stakeholders. In regulated industries, firms must comply with government regulations that entail extensive documentation and reporting requirements.

To ensure regulatory compliance, financial service professionals usually undergo rigorous training and certification procedures. This includes passing the Series 86/87 exams mandated by FINRA. These exams assess the candidates' knowledge of industry regulations and ethical practices required for working in securities research roles.

Apart from acing the exams, other essential steps financial service professionals can undertake include regular monitoring of regulatory changes or updates, continuously improving their understanding of the latest trends in technology or processes in their respective fields.

Ultimately, staying abreast of any control-related issues will help maintain a culture of compliance within an organization. Companies can further encourage this culture by offering up-to-date training sessions on best practice strategies to deal with potential breaches and incidents.

Studying for these exams is like preparing for battle, except instead of swords and shields, you have textbooks and caffeine.

Preparation for the Exams

Want to ace those Series 86/87 exams? Focus on the right stuff. Get the right study materials. Take practice tests. Learn time management techniques. All of these will help you pass with flying colors.

Study Materials

To prepare for the Series 86/87 exams, it is essential to have suitable study aids. These materials can include practice tests, textbooks, flashcards, and online resources.

Investing in a reliable textbook is a crucial step to begin your preparation. You can find many reputable options that give an overview of the material covered within the exam. Additionally, practicing with flashcards can help you memorize key concepts and definitions.

Online resources, such as webinars and video lectures provided by reputable organizations like FINRA, are also helpful in preparing for the exams. These resources offer detailed explanations of subjects tested on within the exam.

To further enhance your preparation process, consider using official practice tests provided by FINRA. These tests simulate the actual exam format and provide insights into what to expect on test day.

Pro Tip: While studying, set aside time to focus on areas where you need improvement rather than spending too much time reviewing material you have already mastered.

Practice tests are like dress rehearsals for exams, except you can't blame the wardrobe department when you forget everything.

Practice Tests and Time Management

Preparing for your Series 86/87 exams involves taking practice tests and managing time effectively. Enhance your exam-taking skills with timed practice tests and analysis of areas requiring more attention. Additionally, manage your time wisely by determining how much time is allowed for each question or section.

It's crucial to ensure you are well-prepared before the Series 86/87 exams. Use study materials such as textbooks, online courses, and live training sessions to help prepare for the exams. Familiarize yourself with different types of questions found in the exam, like multiple-choice questions and simulations.

To increase your chances of success in the exams, you can track your progress regularly using quizzes available as study materials. By doing so, you get to analyze areas that require more focus and put more effort into improving them.

Interestingly, history has shown numerous cases where candidates had practiced adequately but failed because they exhausted their allocated time before completing all exam questions. As a result, practicing with timed techniques helps in better time management during actual exams leading to better results.

Five Facts About Series 86/87 Exams Definition - Finra Exams:

  • ✅ Series 86 and 87 exams are required for individuals looking to become research analysts or research department supervisors in the financial industry. (Source: FINRA)
  • ✅ Series 86 covers financial analysis tools and techniques, while Series 87 covers regulatory requirements and ethical standards for research analysts. (Source: FINRA)
  • ✅ Both exams consist of 125 questions, which must be completed within four hours and 30 minutes. (Source: FINRA)
  • ✅ A passing score of 73% or higher is required for both exams. (Source: FINRA)
  • ✅ Registering for the exams requires sponsorship from a FINRA member firm and payment of a registration fee. (Source: FINRA)

FAQs about Series 86/87 Exams Definition - Finra Exams

What are Series 86/87 Exams Definition - Finra Exams?

Series 86/87 Exams Definition - Finra Exams are securities exams administered by the Financial Industry Regulatory Authority (FINRA), which are required for professionals who wish to become research analysts. The Series 86 exam covers fundamental analysis, while the Series 87 exam covers regulatory analysis.

Who is required to take the Series 86/87 Exams?

Professionals who wish to become research analysts are required to take the Series 86/87 Exams. This includes analysts who work for broker-dealers, investment banks, and other financial institutions.

How long does it take to prepare for the Series 86/87 Exams?

The amount of time it takes to prepare for the Series 86/87 Exams depends on the individual. Some people may be able to prepare in a few weeks, while others may need several months. It is recommended that candidates give themselves ample time to prepare and study the key concepts.

What topics are covered on the Series 86/87 Exams?

The Series 86/87 Exams cover a wide range of topics, including equity securities analysis, industry analysis, financial statement analysis, and economics. The exams also cover regulatory analysis, including laws and rules related to the securities industry and ethical practices.

What is the passing score for the Series 86/87 Exams?

The passing score for the Series 86/87 Exams is 73%. Candidates must score at least 73% on both exams in order to pass and become eligible for registration as a research analyst.

How often can I take the Series 86/87 Exams?

Candidates are allowed to take the Series 86/87 Exams once every 30 days. There is no limit to the number of times a candidate can take the exams, but they must wait at least 30 days between attempts.