Introduction
If you’re reading this, you probably already know the basics about stocks, bonds, mutual funds, ETFs, the capital markets, retirement accounts, FINRA and SEC rules, and other important securities industry information. That’s because you likely passed the Securities Industry Essentials (SIE) exam or you were grandfathered in to the SIE because you passed another representative level exam. If not, then you will have to pass the SIE as well since it is “corequisite” with the Series 82. Passing the SIE is an important step in your industry education, but if you work at a FINRA member firm and you want to become a registered representative, you’re going to have to pass a job-specific FINRA licensing exam; in this case, the Private Securities Offerings Representative Qualification Exam, also known as the Series 82. Even though the Series 82 exam is half the length it once was (50 questions instead of 100), it hasn’t become much easier.
Just a few of the items the Series 82 exam requires you to know about:
- • The Securities Act of 1933
- • The Securities Exchange Act of 1934
- • The Investment Company Act of 1940
- • The Employee Retirement Income Security Act of 1974 (ERISA)
- • Types of securities offerings, including primary, private placement, and private investment in public equity (PIPE)
- • Private offerings exemptions from registration and classes of securities
- • Special issues dealing with electronic offerings
- • Methods of distribution, including firm, stand by, all-or-none (AON), best efforts, and mini-max
- • Determination of qualified institutional buyer (QIB) or accredited investor status
- • Feasibility studies and due diligence
- • The mechanics of distribution
- • The role of placement agent and dealer manager, including firm commitment and best efforts
- • Private placement memorandum and proceeds
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