Introduction
If you have to take the Series 24 General Securities Principal Examination, you’re probably already a General or a Limited Securities Representative and you’ve likely passed at least one of the prerequisite exams (the Series 7, Series 17, Series 37/38, Series 62, Series 79, or Series 82). This means you have an idea of what to expect. You know that securities licensing exams require an understanding of the structure and operations of the U.S. capital markets, as well as knowledge of specific securities industry rules, regulations, and practices. You know that serious study and practice is required to pass an exam, and you know that once you’ve passed a FINRA exam, you are permitted to do something that few people are: you are permitted to work in the securities industry, taking care of other people’s investments. Regulators want to prevent anyone from behaving like Agent 007, and that’s a key reason the “Series” exams exist: to make sure that everyone in the securities industry knows and plays by the rules. The rules are a big part of the Series 24. But getting the Series 24 is more than learning about playing by the rules; becoming a General Securities Principal means you will be licensed to supervise others. That’s what is meant by “principal.” As a result, the Series 24 exam is heavy on rules, especially as they relate to supervision.
What subjects does the Series 24 exam test?
The Series 24 covers rules, regulations, and practices in the areas you will be licensed to supervise: corporate securities, rights, warrants, closed-end funds, money market funds, REITs, asset-backed securities, (corporate) mortgage-backed securities, mutual funds, variable annuities and variable life insurance, direct participation programs, securities trading, venture capital, mergers and acquisitions, and corporate financing.
Topically, the Series 24 is divided into five sections:
• Section 1—Supervision of Registration of the Broker-D