The MSRB has announced the end of a COVID-related grace period allowing municipal principals to delay taking their qualification exams. Continue reading
The MSRB has announced the end of a COVID-related grace period allowing municipal principals to delay taking their qualification exams.
When testing centers closed at the start of the COVID pandemic, the MSRB granted temporary relief from the exam requirement for Municipal Securities Principals (Series 53), Municipal Fund Securities Limited Principals (Series 51), and Municipal Securities Sales Principals (Series 9/10). Representatives with at least 18 months’ relevant experience could be promoted to one of these principal positions while deferring their principal exams.
With the ending of the grace period, municipal principals must pass their principal exams by December 27th in order to continue functioning as principals.
Solomon Exam Prep has helped hundreds pass MSRB exams, including the Series 51 and Series 53. Explore Solomon’s innovative exam prep materials by clicking the link below.
Solomon has added another Ethics and Professional Responsibility course for Investment Adviser Representatives to complete their annual IAR CE requirement. Continue reading
Solomon Exam Prep has just added a new course to its Investment Adviser Representative Continuing Education course library. The course, “Sexual Harassment: Creating a Safe Work Environment,” has been approved by NASAA and earns credit towards the new CE requirement for investment adviser representatives (IARs).
“The Sexual Harassment: Creating a Safe Work Environment course was created in direct response to requests from Solomon investment adviser customers. Solomon is pleased to be able to meet the demand for this important CE topic.”
Jeremy Solomon
Solomon Exam Prep President & Co-founder
About the Course
Employers are responsible for creating work environments where employees are safe and free from sexual harassment. Employees must also understand what sexual harassment is so that they can recognize and prevent it.
This course defines sexual harassment and provides examples that will help you learn to recognize it in the workplace. You’ll learn about the history and legal foundation of modern sexual harassment law. This includes a discussion of power dynamics and the role of gender identity. The course then introduces you to both traditional and alternative approaches to handling workplace harassment. Finally, you’ll learn about IAR disclosure requirements regarding sexual harassment and get tips for safely navigating the digital workplace.
By the end of the course, you’ll be able to do the following:
Define sexual harassment, recognize the two most common forms of sexual harassment, and be able to identify a variety of unacceptable workplace behaviors
Describe how power dynamics can be involved in sexual harassment
Identify different sexual harassment prevention techniques
Identify methods that have been shown to improve worker satisfaction regarding sexual harassment issues
Know the disclosure obligations of IARs with respect to sexual harassment and sexual assault
Identify several ways to make digital workplaces safer for all workers
The Solomon Sexual Harassment CE course is worth one credit for the Ethics and Professional Responsibility category and falls within the Ethics sub-category. IARs must complete six credits of Ethics and Professional Responsibility courses each year, with three of these being Ethics courses. The other six of the 12 required IAR CE credits must be in the Products and Practices category.
About Solomon IAR CE courses
Solomon’s online IAR CE courses are self-paced and accessible on any internet-enabled device. Each course consists of short reading passages followed by quick assessments of 2–4 questions each. This read-and-quiz format facilitates learning and retention.
All Solomon IAR CE courses earn credit towards the Products and Practices, or the Ethics and Professional Responsibility, categories required by NASAA. Once you begin a course, you have up to 365 days to complete it. When you finish a course, Solomon reports completion to FINRA, NASAA’s vendor for program tracking.
What is the IAR CE requirement?
Investment Adviser Representatives registered in a jurisdiction that has adopted and implemented the NASAA model rule must do annual continuing education. To fulfill the IAR CE requirement, IARs must complete 12 credits of continuing education each calendar year.
To learn more about the IAR CE requirement, visit the Solomon IAR CE FAQs page. Explore Solomon’s entire IAR CE course library – purchase individual courses or a membership to the whole library and complete all your IAR CE in one place.
Disclaimer: NASAA does not endorse any particular provider of CE courses. The content of the course and any views expressed are our own and do not necessarily reflect the views of NASAA or any of its member jurisdictions.
Investment Adviser Representatives registered in Washington DC must complete NASAA-approved continuing education courses beginning in 2023. Continue reading
Washington, DC is the most recent jurisdiction to adopt NASAA’s new investment adviser representative continuing education (IAR CE) requirement. The new CE requirement will go into effect for IARs registered in the District of Columbia on January 1, 2023. Kentucky, Michigan, Oklahoma, and Wisconsin will also begin implementing the requirement in 2023.
The IAR CE requirement is already in effect in Maryland, Mississippi, and Vermont. As a result, IARs registered in any of these states must complete CE by the end of 2022.
Arkansas, Nevada, and Rhode Island have begun the process to adopt the IAR CE requirement. If these states finalize adoption in 2022, then the requirement will be effective on January 1, 2023.
The NASAA model rule requires IARs registered in jurisdictions that have adopted the rule to complete 12 credits of CE each year. The requirement applies to both state-registered and federal-registered investment advisers. Six of the 12 credits must be in the Products and Practices category. The other six credits must be in the Ethics and Professional Responsibility category (at least three of these must be Ethics).
Beyond these credit requirements, IARs are free to choose courses that fit their interests and business needs. But any courses taken to fulfill the IAR CE requirement must be approved by NASAA. Solomon Exam Prep is a NASAA-approved CE provider, and all courses in Solomon’s IAR CE course library offer credit towards the CE requirement. Explore Solomon’s IAR CE courses.
Disclaimer: NASAA does not endorse any particular provider of CE courses. The content of the course and any views expressed are our own and do not necessarily reflect the views of NASAA or any of its member jurisdictions.
Investment Adviser Representatives registered in Oklahoma must complete NASAA-approved continuing education courses beginning in 2023. Continue reading
Oklahoma is the most recent state to adopt NASAA’s new investment adviser representative continuing education (IAR CE) requirement. The new CE requirement will go into effect for IARs registered in Oklahoma on January 1, 2023. Kentucky, Michigan, and Wisconsin will also begin implementing the requirement in 2023.
The IAR CE requirement is already in effect in Maryland, Mississippi, and Vermont. As a result, IARs registered in any of these states must complete CE by the end of 2022.
Arkansas, Nevada, Rhode Island, and Washington D.C. have begun the process to adopt the IAR CE requirement. If these jurisdictions finalize adoption in 2022, then the requirement will be effective on January 1, 2023.
The NASAA model rule requires IARs registered in jurisdictions that have adopted the rule to complete 12 credits of CE each year. The requirement applies to both state-registered and federal-registered investment advisers. Six of the 12 credits must be in the Products and Practices category. The other six credits must be in the Ethics and Professional Responsibility category (at least three of these must be Ethics).
Beyond these credit requirements, IARs are free to choose courses that fit their interests and business needs. But any courses taken to fulfill the IAR CE requirement must be approved by NASAA. Solomon Exam Prep is a NASAA-approved CE provider, and all courses in Solomon’s IAR CE course library offer credit towards the CE requirement. Explore Solomon’s IAR CE courses.
Disclaimer: NASAA does not endorse any particular provider of CE courses. The content of the course and any views expressed are our own and do not necessarily reflect the views of NASAA or any of its member jurisdictions.
Thinking about taking the Series 54 exam? Keep reading to learn what the Series 54 qualifies you to do, what the exam covers, and how you should prepare for it. Continue reading
What is the Series 54 exam?
The Series 54, also called the Municipal Advisor Principal Qualification Exam, is a Municipal Securities Rulemaking Board (MSRB) exam. The MSRB is a self-regulatory organization that establishes rules for municipal securities dealers and municipal advisors. As of November 30, 2021, all municipal advisor professionals working in the capacity of a municipal advisor principal must pass the Series 54 to be appropriately qualified.
Passing the Series 54 exam qualifies you to manage, direct, and supervise municipal advisory activities. These activities include advising a municipality regarding issuing municipal securities, such as the structure, timing, or terms of an issue. Soliciting municipal securities business from municipalities on behalf of a third party is also a form of municipal advising.
Are there other exams I need to take to become a municipal advisor principal?
Yes. To become properly qualified as a municipal advisor principal, you must also pass the Series 50, Municipal Advisor Representative Qualification Exam.
About the Exam
The Series 54 exam consists of 100 scored and ten unscored multiple-choice questions. You have three hours to complete the exam, and you must score a 70% or higher to pass.
Note: Scores are rounded down to the next lowest whole number (e.g. 69.9% would be a final score of 69% – not a passing score for the Series 54 exam).
Topics Covered on the Exam
The Series 54 exam is designed to make sure that municipal advisor principals are competent in the supervisory application of rules and regulations. This means that the exam measures your ability to apply regulatory requirements to the municipal advisor’s activities, rather than just a general knowledge of what those regulations are.
The MSRB updates its exam questions regularly to reflect the most current rules and regulations. Solomon recommends that you print out the current version of the MSRB Series 54 Content Outline and use it in conjunction with the Solomon Series 54 Study Guide. The Content Outline is subject to change without notice, so make sure you have the most recent version.
Question Types on the Exam
The Series 54 exam consists of multiple-choice questions, each with four options. You may see the following four question structures. However, keep in mind that these sample questions don’t necessarily represent the difficulty level or subjects covered in the exam.
Closed Stem Format:
This item type asks a question and gives four possible answers to choose from.
Which of the following would be most likely to require registration as a municipal advisor?
Providing a municipality with a price quote for an investment product within the municipality’s investment criteria
Offering the municipality a possible price range for a new issue
Displaying a comparison of debt financing structures
Providing advice on issuing securities to the municipality through its municipal advisor
Open Stem Format:
This kind of question has an incomplete sentence followed by four possible conclusions.
When dealing with municipal entity clients, the two primary duties that a non-solicitor municipal advisor must fulfill with reference to standards of conduct are:
The duties of care and loyalty
The duties of care and suitability
The duties of loyalty and prudence
The duties of fairness and consistency
“Except” (or “Not”) Format:
This type requires an answer that is incorrect or is an exception among the four answer choices.
Documentation that defines a municipal advisory relationship with a client must include all of the following except:
A description of the advisor’s compensation arrangement
Educational background information about the municipal advisor’s associates
The termination date of the relationship between the advisor and the client
A description of all activities to be performed for the client
Complex Multiple-Choice (“Roman Numeral”) Format:
For this question type, you see a question followed by two or more statements identified by Roman numerals. The four answer choices represent combinations of these statements. You must select the combination that best answers the question.
Which two of the following actions are required for a municipal advisor to comply with MSRB rules on supervision?
Designation of a single chief compliance officer
Annual certification of supervisory policies
Providing clients with an annual update of supervisory practices
Designation of a principal at each of the firm’s offices to oversee the system
I and II
I and IV
II and III
III and IV
Answers: 1. D 2. A 3. B 4. A
Try a free sample of Solomon Exam Prep’s Series 54 Exam Simulator. You’ll receive instant feedback on each question with a robust explanation of the correct answer.
Taking the Series 54 Exam
The Financial Industry Regulatory Authority (FINRA) administers the Series 54 exam, and you must take it at a Prometric test center. Like all qualifying exams in the securities industry, the Series 54 is closed-book, and you’re not allowed to bring anything into the exam. The test center will provide you with any materials you need to complete the exam. For instance, the test center may provide a whiteboard with markers or scratch paper and a pencil, as well as a basic electronic calculator. The inspection and sign-in requirements at test centers are stringent, so plan to arrive at least 30 minutes before your scheduled test appointment.
Before the exam starts, you’ll take a 30-minute tutorial on exam administration. After you finish the tutorial, the exam will begin and you’ll have three hours to complete it.
Test-Taking Tips
When taking the exam, it helps to keep some test-taking strategies in mind. Try not to spend too long on one question—this may cause you to run out of time and not get to other questions you know. If you don’t know the answer to a question, guess at the answer and “flag” it. There’s no penalty for guessing, so it’s beneficial to answer every question.
After you’ve finished all the questions, you can come back to any flagged questions. This strategy allows you to efficiently answer the ones you know. You might also learn something later in the exam that helps you answer an earlier question. Just remember to save enough time to return to the questions you didn’t answer. However, it’s not a good idea to simply skip all of the difficult questions with the plan to answer them later. You should make a serious effort to answer each question before moving on to the next one since your thoughts are often clearer earlier on during the exam.
How to Study for the Series 54 Exam
Follow Solomon Exam Prep’s proven study system:
Read and understand. Read the Solomon Study Guide, carefully. Many students read the Study Guide two or three times before taking the exam. To increase your ability to focus while reading, or as an alternative to reading, listen to the Solomon Series 54 Audiobook. The Audiobook is a word-for-word reading of the Study Guide.
Take chapter quizzes in the Exam Simulator. When you finish reading a chapter in the Study Guide, take 4–6 chapter quizzes in the Exam Simulator. Use these quizzes to give yourself practice and to find out what you need to study more. Make sure you read and understand the question rationales.
Take full practice exams in the Exam Simulator. When you’ve finished reading the entire Study Guide, review your handwritten notes once more. Finally, start taking full practice exams in the Exam Simulator. Aim to pass at least six full practice exams and try to get your average score to at least 80%. When you reach that point, you’re probably ready to sit for the Series 54 exam.
Use these effective study strategies:
Take handwritten notes. As you read the Study Guide, take handwritten notes and review your notes every day for 10–15 minutes. Studies show that taking handwritten notes in your own words and then reviewing them strengthens learning and memory.
Make flashcards. Making your own flashcards is another proven method to reinforce memory and strengthen learning.
Research. Research anything you don’t understand. Curiosity = learning. Students who take responsibility for their own learning by researching anything they don’t understand get a deeper understanding of the subject matter and are much more likely to pass.
Become the teacher. Studies show that explaining what you’re learning greatly increases your understanding of the material. Ask someone in your life to listen and ask questions, or explain it out loud to yourself. Studies show this helps almost as much as explaining to an actual person (see Solomon’s blog post to learn more about this strategy!).
Take advantage of Solomon’s supplemental tools and resources:
Use all the resources. The Series 54 Resources folder in your Solomon student account has helpful study tools, including documents that summarize important exam concepts. There’s also a detailed study schedule that you can print out – or use the online study schedule and check off tasks as you complete them.
Watch the Video Lecture. This provides a helpful review of the key concepts in each chapter after reading the Solomon Study Guide. Take notes to help yourself stay focused.
Use Ask the Professor. If you have a content-related question, click the Ask the Professor button in your account dashboard and get personalized help from a Solomon professor.
Good practices while studying:
Take regular breaks. Studies show that if you’re studying for an exam, taking regular walks in a park or natural setting significantly improves scores. Walks in urban areas or among people did not improve test scores.
Get enough sleep. Sleep consolidates learning into memory, studies show. Be good to yourself while you’re studying for the Series 54: exercise, eat well, and avoid activities that will hurt your ability to get a good night’s sleep.
You can pass the MSRB Series 54 exam! It just takes focus and determination. Solomon Exam Prep is here to support you on your path to becoming a Municipal Advisor Principal.
Explore all Solomon Series 54 exam prep, including the Study Guide, Exam Simulator, Audiobook, and Video Lecture.
And join the Solomon email list to hear about new product releases, industry news, and more! Just click the button below:
The updated 5th edition of the Solomon Series 82 Study Guide covers everything you need to know to pass the FINRA Series 82 exam. Continue reading
If you work at a FINRA member firm and want to become a registered representative, you’ll need to pass a job-specific FINRA licensing exam. One such exam is the Private Securities Offerings Representative Exam, also known as the Series 82. The Series 82 exam is half the length it once was (50 questions instead of 100), but it hasn’t become much easier. How should you prepare for the exam?
Solomon Exam Prep is delighted to release the 5th edition of “The Solomon Exam Prep Guide: Series 82 FINRA Private Securities Offerings Representative Exam.” With this updated version of the Study Guide, professionals who want to become a registered Private Securities Offerings Representative can learn the content they need to know to pass the Series 82 exam. Passing the Series 82, along with the co-requisite Securities Industry Essentials (SIE) Exam, qualifies an individual for the sale of private placement securities as part of a primary offering.
About the Series 82 Exam
The Series 82 is a fairly difficult exam that requires candidates to study a wide range of securities, regulations, and market information. Exam topics are divided into four sections:
Section 1: Seeks Business for the Broker-Dealer from Customers and Potential Customers
Section 2: Opens Accounts After Obtaining and Evaluating Customers’ Financial Profile and Investment Objectives
Section 3: Provides Customers with Information About Investments, Makes Suitable Recommendations, Transfers Assets and Maintains Appropriate Records
Section 4: Obtains and Verifies Customers’ Purchase Instructions and Agreements; Processes, Completes and Confirms Transactions
To help prepare candidates for this challenging exam, the Solomon Series 82 Study Guide is continually kept up to date to reflect current rules and regulations, and it covers all key exam topics. Charts, graphs, and practice questions throughout the text support learners in understanding and applying important concepts.
“The rules are a big part of the Series 82, but becoming registered as a Private Securities Offerings Representative is about more than learning to play by the rules – it means you are expected to be competent. That’s why passing the Series 82 requires mastering a wide range of knowledge. The Series 82 is a high bar, but once you’ve hurdled it, you’ll be a knowledgeable private securities industry professional.”
Jeremy Solomon
Solomon Exam Prep President and Co-founder
What changes with this new edition?
The core content of the Series 82 Study Guide remains the same, but some important changes include:
Expanded and updated discussion of Regulation D private placements, including the SEC’s new definition of accredited investors
A new section with extensive coverage of Regulation Best Interest and the new suitability requirements it imposes on BDs
Information about the SEC’s new, higher exempt offering dollar caps
Added discussion of the SEC’s new Rule 152, which has a major impact on how exempt offerings retain their exempt status
Updated and expanded explanation of crowdfunding
Updated and expanded coverage of using finders to identify potential investors
Revamped discussion of member private offerings rules
Additional coverage of gifts and charitable donations
Information about the SEC’s fair disclosure rules
Content updates for this new edition are also reflected in the Solomon Series 82 Exam Simulator. The online Exam Simulator complements the Study Guide with over 1,700 practice questions for the Series 82. Hone, track, and assess your knowledge by taking unlimited chapter quizzes and full exams to practice what you’ve learned.
“I took the Series 82 just four weeks after passing the SIE. I followed the study plan, took tons of the great practice tests, got great advice from Karen [Solomon Co-founder & Content Director], and everything worked out well. It was literally the perfect test prep experience... 100% rating. Thank you, Solomon!”
Jonathan Roth
DAK Capital / DAK Group, Rochelle Park, NJ
Series 82 Study Materials
The Series 82 Study Guide is available as a digital subscription with a hardcopy upgrade option. You can purchase the Study Guide individually or in a package with supporting Series 82 study products. Customers also have access to free tools and resources, including a study schedule in digital and pdf formats, which helps you master the exam material with maximum efficiency.
To learn more about Solomon Exam Prep’s Series 82 study materials, including Study Guide, Exam Simulator, Audiobook, Video Lecture, and Flashcards, visit the Solomon Series 82 product page.
Series 82 Exam Practice Questions
Test your Series 82 knowledge! The questions below come from Solomon’s industry-leading Exam Simulator:
1. A Regulation A (also called Regulation A+) offering is for a maximum amount of securities of:
$75 million or less during a 6-month period
$75 million or less during a 12-month period
$10 million or less during a 12-month period
$10 million or less during a 6-month period
2. What is the equivalent taxable yield of a 6.5% municipal bond if the investor’s tax bracket is 25%?
18.5%
8.67%
6.5%
4.88%
3. According to Regulation D, which of the following are NOT considered “accredited investors?”
A married couple with an annual joint earned income of $250,000 for two years
An individual with an annual earned income of $250,000 for each of the last two years
An individual with a net worth of $1,500,000, not counting his or her home
All are considered
Answers: 1) B. 2) B. 3) A.
For more Series 82 practice questions and to try out the Solomon Exam Simulator, take Solomon’s free Series 82 Sample Quiz!
Solomon Exam Prep’s SIE study program is available as an on-demand course via State College of Florida’s Lifelong Learning and Workforce Development Division. Continue reading
Solomon Exam Prep is excited to be partnering with the State College of Florida (SCF) to offer an online SIE Exam Prep course through SCF’s Lifelong Learning and Workforce Development Division. The self-paced, non-credit course will prepare students to sit for the FINRA Securities Industry Essentials (SIE) Exam.
The SIE Exam Prep course is for anyone who is curious about the world of finance and investing, or who might be interested in a career in the field. The FINRA SIE Exam tests general knowledge of the securities industry and is the foundational requirement for many careers, including stockbroker, financial advisor, investment banker, and more. A passing score on the SIE Exam is valid for your years, and having it on your resume can open doors to jobs in the finance and securities industries.
“Solomon Exam Prep is thrilled to be working with the State College of Florida to help SCF students pass the FINRA SIE exam and other securities licensing exams.”
Jeremy Solomon, President & Co-founder of Solomon Exam Prep
What does the course include?
Course registration includes 180-day access to the Solomon SIE Total Study Package, which contains the following digital study materials:
Study Guide
Exam Simulator
Audiobook
Video Lecture
Flashcards
The Solomon SIE Total Study Package also comes with helpful resources and tools, including Solomon SIE Study Schedules, up to twenty Ask the Professor questions, and Pass Probability™, an AI technology that predicts exam readiness.
About the State College of Florida
Established in 1957, State College of Florida, Manatee-Sarasota (SCF) is the region’s first and largest public college, serving 11,000 college credit students annually at three campuses and via online classes. Another 14,000 participants annually take professional development and personal enrichment classes through SCF’s Lifelong Learning and Workforce Development Division, which offers year-round non-credit courses both in person and online.
Interested in partnering with Solomon?
Solomon Exam Prep partners with dozens of colleges and universities to bring the Solomon SIE exam prep program to students across the country. Solomon can tailor its SIE curriculum to fit any course, including credit and non-credit courses, as part of a current course such as Finance or Capital Markets, or as a self-study program. The Solomon platform works equally well for in-person, hybrid, and online courses.
Join institutions such as State College of Florida, Elon University, Florida Memorial University, Pepperdine University, the University of North Carolina at Pembroke, Claflin University, University of Delaware, Adelphi University, University of Nebraska-Omaha, Seton Hall University, Ohio Dominican University, Georgetown University, Widener University, and University of Dallas in partnering with Solomon.
To learn more about the ways colleges and universities can partner with Solomon, contact Beth Hamilton, Higher Education Development Manager, at beth@solomonexamprep.com or 503-601-0212.
What is the Series 3 exam? Learn what passing the Series 3 exam allows you to do, what the exam covers, and how you should prepare for it. Continue reading
What is the Series 3 exam?
The Series 3, also called the National Commodities Futures Examination, is an NFA (National Futures Association) exam. NFA is the self-regulatory organization for the U.S. derivatives industry and is designated by the Commodity Futures Trading Commission (CFTC) as a registered futures association. The goals of the NFA are to ensure the integrity of the derivatives markets, protect investors, and enforce regulations.
Individuals and entities that do business as futures professionals must register with the CFTC and meet certain proficiency requirements. This usually means passing the Series 3 exam.
You may need to take the Series 3 exam in order to work as an associated person at one of the following:
Futures commission merchant (FCM)—a brokerage firm that solicits orders from customers and executes trades. It may also provide credit to its customers to enable trading.
Introducing broker (IB)—a brokerage firm that solicits orders from customers but is not permitted to execute them. It must send its orders to an FCM to execute and clear the trades.
Commodity trading advisor (CTA)—an individual or firm that analyzes futures markets, issues reports, offers advice, and makes recommendations.
Commodity pool operator (CPO)—an individual or firm that solicits funds from the public and pools them into a single account to invest in futures contracts.
Retail foreign exchange dealer (RFED)—an individual or entity that acts as a counterparty to an over-the-counter foreign currency transaction.
What does the Series 3 qualify me to do?
Passing the Series 3 exam qualifies you sell commodities, futures contracts, or commodity pools. The term “sell” includes soliciting customers, customer orders, customer funds, or customer accounts on behalf of the entities listed above. It also qualifies those who work for a CTA to analyze, issue reports, and offer advice on futures markets. You’ll also be qualified to manage other individuals who sell commodities or futures contracts.
Note that simply passing the Series 3 exam does not allow you to act as a registered commodity broker. You’ll also need to complete a lengthy online registration application with the NFA, which includes submitting a fingerprint card and other required filings.
Are there any prerequisites for the Series 3?
There are no prerequisites for the Series 3 exam, and you can enroll to take the exam without firm sponsorship. You must sign up for the exam and pay the exam fee to the Financial Industry Regulatory Authority (FINRA), which administers the Series 3 exam.
About the Exam
The Series 3 exam consists of 120 scored and five unscored multiple-choice or true/false questions. The five unscored questions are experimental questions and appear randomly.
Note: Scores are rounded down to the next lowest whole number (e.g. 69.9% would be a final score of 69% – not a passing score for the Series 3 exam).
Topics Covered on the Exam
The NFA divides the questions on the Series 3 exam into two parts. The first part, covering market knowledge, includes several topics. The second part covers U.S. regulations and includes only one topic. The NFA updates its exam questions regularly to reflect the most current rules and regulations. You must receive a score of 70% on both parts of the exam to pass.
Question Types on the Exam
The Series 3 exam consists of multiple-choice questions, each with four options. You may see the following question structures. However, keep in mind that these sample questions don’t necessarily represent the difficulty level or subjects covered in the actual exam.
Closed Stem Format:
This item type asks a question and gives four possible answers to choose from.
Which of the following is not classified as a commodity?
Livestock
Automobiles
Corn
Oil
Incomplete Sentence Format:
This kind of question has an incomplete sentence followed by four possible conclusions.
All foreign exchange futures contracts are quoted in:
American terms
European terms
The same terms in which the foreign currency is quoted in the spot market
American and European terms side by side
“EXCEPT” Format:
This type requires you to recognize the one choice that is an exception among the four answer choices.
All of the following are characteristics of a Treasury bill except:
They are sold at discount to the par value.
They pay low periodic interest payments.
They are considered the safest of Treasury securities.
They have a maximum 52-week maturity.
Complex Multiple-Choice (“Roman Numeral”) Format:
For this question type, you see a question followed by two or more statements identified by Roman numerals. The four answer choices represent combinations of these statements. You must select the combination that best answers the question.
A forward conversion combines which two of the following?
A long futures contract
A short futures contract
A short call and a long put on the futures contract
A long call and a short put on the futures contract
I and III
I and IV
II and III
II and IV
This format is also used in items that ask you to rank or order a set of items from highest to lowest (or vice versa), or to place a series of events in the proper sequence.
Put these futures contract events in the proper sequence:
Last delivery date
First delivery date
First notice date
Last trade date
IV, II, III, I
III, II, IV, I
III, IV, II, I
II, III, I, IV
Answers: 1. B 2. A 3. B 4. A 5. B
Try a free sample of the Solomon Series 3 Exam Simulator. You receive instant feedback on each question with a robust explanation of the correct answer.
Taking the Series 3 Exam
You can take the Series 3 exam at a Prometric test center or remotely online using Prometric’s ProProctor system. If taking the exam at a test center, you will receive any materials you need to complete the exam. These may include a whiteboard with markers or scratch paper and a pencil, as well as a basic electronic calculator. The inspection and sign-in requirements at test centers are stringent, so plan to arrive at least 30 minutes before your scheduled test appointment.
If you decide to take the test online with ProProctor, you should learn about the strict procedures you must follow. See this ProProcter user guide or the FINRA online testing page for complete details. And for a first-hand account of the remote testing experience, read this Solomon blog post.
Test-Taking Tips
Whether you take the exam at a test center or online, it helps to keep some test-taking strategies in mind. Try not to spend too long on one question—this may cause you to run out of time and not get to other questions you know. If you don’t know the answer to a question, take your best guess and flag it. There’s no penalty for guessing, so it’s beneficial to answer every question.
After you’ve finished all the questions, you can return to any flagged questions. This strategy allows you to efficiently answer the ones you know. You might also learn something later in the exam that helps you answer an earlier question. Just remember to save enough time to return to the questions you didn’t answer. However, it’s not a good idea to simply skip all of the difficult questions with the plan to answer them later. You should make a serious effort to answer each question before moving on to the next one since your thoughts are often clearer earlier on during the exam.
How to Study for the Series 3 Exam
Follow Solomon Exam Prep’s proven study system:
Read and understand. Read the Solomon Study Guide carefully. Many students read the Study Guide two or three times before taking the exam.
Take chapter quizzes in the Exam Simulator. When you finish reading a chapter in the Study Guide, take 4–6 chapter quizzes in the Exam Simulator. Use these quizzes to give yourself practice and to find out what you need to study more. Make sure you read and understand the question rationales.
Take full practice exams in the Exam Simulator. When you’ve finished reading the entire Study Guide, review your handwritten notes once more. Finally, start taking full practice exams in the Exam Simulator. Aim to pass at least six full practice exams and try to get your average score to at least 80%. When you reach that point, you’re probably ready to sit for the Series 3 exam.
Use these effective study strategies:
Take handwritten notes. As you read the Study Guide, take handwritten notes and review your notes every day for 10–15 minutes. Studies show that taking handwritten notes in your own words and then reviewing them strengthens learning and memory.
Make flashcards. Making your own flashcards is another proven method to reinforce memory and strengthen learning.
Research. Research anything you don’t understand. Curiosity = learning. Students who take responsibility for their own learning by researching anything they don’t understand get a deeper understanding of the subject matter and are much more likely to pass.
Become the teacher. Studies show that explaining what you’re learning greatly increases your understanding of the material. Ask someone in your life to listen and ask questions, or explain it out loud to yourself. This helps almost as much as explaining to an actual person (see Solomon’s previous blog post to learn more about this strategy!).
Take advantage of Solomon’s supplemental tools and resources:
Use all the resources. The Series 3 Resources folder in your Solomon student account has helpful study tools, including a detailed study schedule that you can print out. Or, use the online study schedule and check off tasks as you complete them.
Use Ask the Professor. If you have a content-related question, click the Ask the Professor button in your account dashboard and get personalized help from a Solomon professor.
Good practices while studying:
Take regular breaks. Studies show that if you’re studying for an exam, taking regular walks in a park or natural setting significantly improves scores. Walks in urban areas or among people did not improve test scores.
Get enough sleep during the period when you are studying. Sleep consolidates learning into memory, studies show. Be good to yourself while you’re studying for the Series 3: exercise, eat well, and avoid activities that will hurt your ability to get a good night’s sleep.
You can pass the NFA Series 3 Exam! It just takes focus and determination. Solomon Exam Prep is here to support you on your path to becoming a Futures Professional!
The Solomon Series 82 Live Web Class will help you learn important exam topics from a Solomon Professor. Class recording included for replay. Continue reading
Are you preparing to take the FINRA Series 82 exam and looking for additional support? Solomon Exam Prep offers a Series 82 Live Web Class to help you prepare! The Solomon Series 82 Live Web Class is designed to supplement your studying with live, online instruction. In this 4-day intensive class, a Solomon content professional leads you step-by-step through the most important Series 82 exam topics.
The class covers the following Series 82 topic areas:
Seeks Business for the Broker-Dealer
Safe Harbors from Registration under the 1933 Act
Communications with the Public
Opens Accounts
Customer Accounts
Supervision and Communications with the Public
Provides Information, Makes Recommendations, Maintains Records
Financial Goals and Strategies
Taxation of Debt and Equity Securities
Types of Risk and Recordkeeping Requirements
FINRA Conduct Rules
Verifies Purchase Instructions and Completes Transactions
Customer Complaints and Dispute Resolution Procedure
Click the link below to find out when the next class is scheduled and sign up. Not sure if a Solomon Live Web Class is right for you? Read our frequently-asked-questions below.
Frequently Asked Questions about Solomon Live Web Classes
Where can I take a Live Web Class?
Classes take place online using Zoom, so you can learn anywhere you have an internet connection. Attend classes on your computer, tablet, or smart phone.
When can I take a Live Web Class?
Although classes are live and scheduled at specific times, you can also learn asynchronously. Solomon provides class attendees with daily class recordings in case you miss any live class time. Recordings are available in your student account for 30 days after the class ends.
Who teaches Solomon Live Web Classes?
Solomon Live Web Classes are taught by members of Solomon’s content team. As a result, you benefit from authoritative instruction on exam concepts, contextualized by supporting examples.
Am I able to interact with the instructor during the class?
The live, interactive format gives you the chance to listen to an expert explain tricky concepts, plus ask questions when needed using the chat feature in Zoom.
Why should I take a Live Web Class?
There are many reasons you might decide to take a Live Web Class:
You want to begin your studies with an overview from an instructor. A Live Web Class will take you through the most important exam concepts, and you’ll come away with a good idea of what you need to study to be well-prepared for the exam.
You struggle with self-paced learning. If it’s hard to stick to the Solomon Study Schedule, then taking a Live Web Class can help you get through the most important exam concepts in a short period of time. A class isn’t a substitute for reading the Study Guide and taking practice exams in the Exam Simulator, but it will enable you to learn a lot of information and set you on the right track to completing your study plan.
You attempted the exam previously and didn’t pass, so you think a class could help you pass the next time. A Live Web Class will give you a comprehensive overview of the most important exam topics, explained by a Solomon content professional. And you’ll have the opportunity to ask questions and get clarification on any confusing points.
You want to review before taking the exam. Once you’ve completed a Solomon Study Schedule and are nearing your exam date, a Live Web Class is the perfect way to review all the crucial exam concepts and clear up any trouble areas.
When is the best time to take a Live Web Class?
Many students report getting more out of a class after they’ve spent a significant amount of time studying on their own first. A Solomon Live Web Class is a useful addition to your study plan if you’re struggling with certain topics or want a comprehensive review before taking the exam.
Before taking a Solomon Live Web Class, we encourage you to follow Solomon’s self-paced study course. You can use individual study materials or a package, but at a minimum we recommend the Study Guide and Exam Simulator. Other materials available include Audiobooks, Video Lectures, and digital Flashcards. For the best results, follow a study schedule (Solomon provides free digital and pdf schedules).
Can I take a Solomon Live Web Class if I’m studying with another company’s materials?
Yes, a Solomon Live Web Class is a great way to supplement your self-paced learning, whether using Solomon’s study materials or another company's. Keep in mind, though, that the content of the class aligns closely with the Solomon Study Guide. As a result, studying with Solomon study materials in addition to taking the class will give you the most cohesive experience.
The new 3rd edition of the Solomon Series 54 Study Guide covers everything you need to know to pass the exam and become a Municipal Advisor Principal. Continue reading
If you’ve already passed the Series 50 exam and are working as a Municipal Advisor Representative, then you’re well-positioned to consider taking the Series 54 exam. The MSRB Series 54, or Municipal Advisor Principal Exam, qualifies you to supervise associates who conduct municipal advisory business. But how should you prepare for the exam?
Solomon Exam Prep is excited to release the 3rd edition of “The Solomon Exam Prep Guide: Series 54 MSRB Municipal Advisor Principal Qualification Examination.” With this updated version of the Study Guide, professionals who want to become registered Municipal Advisor Principals can learn the content they need to know to pass the Series 54 exam.
About the Series 54 Exam
The Series 54 exam is 110 questions long and tests your knowledge of three main topic areas:
Understanding the Municipal Advisor Regulatory Framework
Supervising Municipal Advisory Activities
Supervising Municipal Advisor Firm Operations
Passing the Series 54 requires you to study and master a wide range of municipal advisory knowledge. This is because, as Solomon Exam Prep President and Co-founder, Jeremy Solomon, explains, “Municipal advisors have a crucial responsibility to establish and enforce compliance procedures at their firm, which is why the Series 54 exam is so challenging. To pass the Series 54, high-quality study materials are a must, and Solomon delivers just that with a consistently high pass rate to prove it.”
“Municipal advisors have a crucial responsibility to establish and enforce compliance procedures at their firm, which is why the Series 54 exam is so challenging. To pass the Series 54, high-quality study materials are a must, and Solomon delivers just that with a consistently high pass rate to prove it.”
Jeremy Solomon
Solomon Exam Prep President and Co-founder
What changes with this new edition?
The core content of the Series 54 Study Guide remains the same, but some key changes in the 3rd edition include:
Expanded and updated coverage of the MSRB’s pay to play rule
Expanded coverage of the MSRB’s advertising rules
Expanded and updated discussion of the MSRB’s rules about giving and receiving items of value
Supplemental information on continuing disclosure agreements
Expanded coverage of mandatory recordkeeping for municipal securities transactions
More detail on mandatory recordkeeping of customer complaints
Content updates for this new edition are also reflected in the Solomon Exam Simulator. The online Exam Simulator complements the Study Guide with hundreds of practice questions for the Series 54. Hone, track, and assess your knowledge by taking unlimited chapter quizzes and full exams to practice what you’ve learned.
Series 54 Study Materials
The Series 54 Study Guide is available as a digital subscription with a hardcopy upgrade option. You can purchase the Study Guide individually or in a package with supporting Series 54 study products. Customers also have access to free tools and resources. These include a study schedule in digital and pdf formats, which helps students master the exam material with maximum efficiency.
To learn more about Solomon Exam Prep’s Series 54 study materials, including Study Guide, Exam Simulator, Audiobook, and Video Lecture, visit the Solomon Series 54 product page.
