Solomon Exam Prep and Pass Perfect Join Forces to Create Unrivaled Securities Education Solutions

Two leading providers of education solutions for the securities industry are merging under one brand to become the definitive leader in securities licensing exam preparation. Continue reading

Solomon Exam Prep and Pass Perfect, leading providers of education solutions for the securities industry, are joining forces to expand and advance the suite of products under the Pass Perfect brand. This merging of the two brands will strengthen the securities education offerings available from CeriFi, which acquired Pass Perfect in 2018 and Solomon Exam Prep in 2022.

“By harnessing the power of collaboration, we are poised to set new benchmarks in the securities training industry and drive tangible results for our clients,” said Lisa Stafford, Vice President of Licensing at CeriFi.

Individuals seeking to start or advance their career in the securities industry must pass licensing exams. Because these exams are comprehensive and rigorous, choosing an effective exam preparation program is important to ensure success.

Pass Perfect has spent the last few decades perfecting the science of preparing for securities licensing exams. Now, with the combined expertise and resources of Solomon Exam Prep and Pass Perfect, customers will benefit from an even more enriching educational experience that ensures success on their exams.

Leveraging the latest in Learning Science and Instructional Design, Pass Perfect’s study materials are designed to make studying more efficient. Customers have access to a variety of robust tools, such as study guides, video lectures, and practice exams, delivered on an innovative learning management system that personalizes their study experience for better results.

New and improved exam prep courses will be available from Pass Perfect starting in July 2023:

SIE, SIE+6, SIE+7, 3, 4, 6, 7, 9, 10, 9+10, 14, 22, 24, 26, 27, 28, 50, 51, 52, 53, 54, 57, 63, 65, 66, 79, 82, 99

ABOUT CERIFI
CeriFi is a diversified education, training and certification provider serving professionals across the financial services market. CeriFi’s broad suite of products delivers mission-critical results to individuals and professionals across the accounting, financial analysis, financial crime, financial planning, financial risk management, insurance, legal, securities licensing and tax industries. To date, CeriFi has acquired fourteen highly complementary companies, including Dalton Education, Money Education, Keir Financial Education, Pass Perfect, the CFP assets of LoneStar Financial Education, the Association of Certified Financial Crime Specialists (ACFCS), Bionic Turtle, CPMI, Fast Forward Academy, Spidell Publishing, MarkMeldrum.com, Solomon Exam Prep, Checkpoint Learning, and West LegalEdcenter. For additional information on CeriFi, see https://cerifi.com/.

ABOUT PASS PERFECT
Pass Perfect is a leading provider of FINRA licensing exam training to the financial services industry. Founded in 1988, Pass Perfect has successfully trained over 1 million securities professionals with its proprietary FINRA exam preparation solutions. Pass Perfect offers a comprehensive solution offering that is differentiated based upon its superior quality of content and unique interactive learning technology. For additional information on Pass Perfect, see https://www.passperfect.com/.

ABOUT SOLOMON EXAM PREP
For over 15 years, Solomon Exam Prep helped thousands of financial professionals and students pass their FINRA, MSRB, NASAA, and NFA securities licensing exams, including the SIE and the Series 3, 6, 7, 14, 22, 24, 26, 27, 28, 50, 51, 52, 53, 54, 63, 65, 66, 79, 82, and 99. In 2022, Solomon Exam Prep was among the first providers to offer Investment Adviser Representative Continuing Education. For additional information on Solomon Exam Prep, see https://solomonexamprep.com/.

Media Contact:
Lindsey Salens
Marketing@cerifi.com

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Solomon Exam Prep Named One of the “Best SIE Exam Prep Courses of 2023”

For the second year in a row, Investopedia has chosen Solomon Exam Prep as the “Best Value” SIE Exam Prep Course. Continue reading

Solomon Exam Prep is proud to have been included on Investopedia’s list of the top six prep courses for the FINRA Securities Industry Essentials (SIE) Exam. This is the second year in a row that Solomon’s SIE materials have been recognized by Investopedia’s independent review process as among the best available.

In the review, Investopedia named Solomon’s SIE exam prep as the “best value” of the many vendors that provide SIE prep courses. They highlighted the fact that Solomon materials are affordable, and that they offer the flexibility of purchasing study products individually or in packages. As a result, students can customize their learning plan to fit their preferences. And if someone opts for a package option, there are generous discounts.

Solomon Exam Prep offers the following study products for the SIE: digital and hardcopy study guide, exam simulator, video lecture, audiobook, flashcards, and live web classes. There are four packages, which combine the study guide, exam simulator, and one or more additional products. All Solomon SIE materials include access to professor support and free resource materials. To learn more about Solomon’s SIE exam prep materials, visit the Solomon SIE page.

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How to Pass the FINRA Series 24 Exam

Should you take the Series 24 exam? Keep reading to learn what the Series 24 qualifies you to do, what the exam covers, and how you should prepare for it. Continue reading

What is the Series 24 exam?

The Series 24, also called the General Securities Principal Examination, is a FINRA exam that assesses how competent you are to perform the functions of an entry-level principal at a broker-dealer. A “principal” at a broker-dealer is licensed to supervise others working as securities representatives. Therefore, the Series 24 exam tests your knowledge of rules, regulations, and practices in all areas of a firm’s securities business. Passing the Series 24 qualifies you to supervise advertising, market making, trading, and underwriting.

Are there any prerequisites for the Series 24 exam?

Yes, you must also pass the Securities Industry Essentials (SIE) Exam and a representative-level qualification exam, or the Series 16, to obtain a principal registration. These are the principal registrations depending on which corequisites you earn:

    • General Securities Principal: SIE + Series 7 + Series 24
    • Securities Trader Principal: SIE + Series 57 + Series 24
    • Investment Banking Principal: SIE + Series 79 + Series 24
    • Private Securities Offerings Principal: SIE + Series 82 + Series 24
    • Research Principal: SIE + Series 86 and 87 + Series 24 OR Series 16 + Series 24

About the Exam

The Series 24 exam consists of 150 multiple-choice questions worth one point each. In addition, there are 10 unscored experimental questions distributed randomly throughout the exam. You have three hours and 45 minutes to complete the exam, and you must score 70% or higher to pass.

Series 24 exam details

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 24 exam).

Topics Covered on the Exam

FINRA divides the questions on the Series 24 exam into five areas representing the main job functions of a General Securities Principal.

Series 24 exam topics

FINRA updates its exam questions regularly to reflect the most current rules and regulations. Solomon recommends that you print out the current version of the FINRA Series 24 Content Outline and use it in conjunction with the Solomon Series 24 Study Guide. The Content Outline is subject to change without notice, so make sure you have the most recent version.

Series 24 Example Questions

The Series 24 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 exam.

Closed Stem Format:

This item type asks a question and gives four possible answers to choose from.

If a registered person leaves the securities industry and enrolls in the Maintaining Qualifications Program (MQP) how long can he remain outside of the industry before he will be required to retake his qualification exam(s)?

    1. Two years
    2. Three years
    3. Five years
    4. Seven years
Open Stem Format:

This kind of question has an incomplete sentence followed by four possible conclusions.

In order to use customers’ free credit balances in its business operations, a firm must send a written notification to customers that:

    1. Affirms that their free credit balances are segregated
    2. States the amount of money the firm owes the account
    3. Requests written permission from the customer to borrow from the account
    4. Affirms that all funds will be repaid with interest in 90 days
“Except” (or “Not”) Format:

This type requires an answer that is incorrect or is an exception among the four answer choices.

A registered principal is conducting his firm’s annual internal inspection at its OSJs. The principal must do all of the following, except:

    1. Review customer account records for irregularities and abuses
    2. Test policies and procedures for safeguarding customer accounts
    3. Evaluate supervision of customer accounts serviced by branch office managers
    4. Approve all retail communications to be used in the coming year
    1.  
  1. Answers: 1. C   2. B   3. D

For more Series 24 practice questions, try a free sample of the Solomon Series 24 Exam Simulator. You receive instant feedback on each question with a robust explanation of the correct answer.

Taking the Series 24 Exam

To take the Series 24 exam, you must be associated with and sponsored by a FINRA member firm. Your firm must enroll you to take the exam through FINRA. Once FINRA processes your enrollment, you have a 120-day window in which to schedule and take the exam.

The exam is taken at a Prometric testing center via computer. Like all securities industry exams, the Series 24 is closed-book. The testing center will provide you with any materials you need to take the exam, such as a four-function calculator, erasable note board, dry-erase markers, and noise-cancelling headphones. The inspection and sign-in requirements at testing centers are stringent, so arrive at least 30 minutes before your appointment.

Test-Taking Tips

Here are some basic test-taking strategies to remember when taking your exam. Don’t spend too much time on any one question. This could cause you to run out of time and not get to other questions you know. If you’re not sure about a question, take your best guess and mark it for review. There’s no penalty for guessing, so try to answer every question.

After you’ve answered all the questions, you can go back to any questions you flagged for review. 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 factor in some time to return to the questions you flagged. However, don’t simply skip all of the difficult questions with the plan to answer them later. Instead, make a sincere effort to answer each question before moving on to the next one because your mind is fresher earlier on during the exam.

How to Study for the Series 24 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 Series 24 Audiobook, which 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 Solomon Pass Probability™ score to at least 80%. When you reach that point, you’re probably ready to sit for the Series 24 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 24 Resources folder in your Solomon student account has helpful study tools, including detailed study schedules 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. Sleep consolidates learning into memory, studies show. Be good to yourself while you’re studying for the Series 24: exercise, eat well, and avoid activities that will hurt your ability to get a good night’s sleep.

You can pass the FINRA Series 24 exam! It just takes focus and determination. Solomon Exam Prep is here to support you on your path to becoming a General Securities Principal.

Explore all Solomon Series 24 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:

How to Pass the MSRB Series 51 Exam

Considering taking the Series 51 exam? Keep reading to learn what the Series 51 qualifies you to do, what the exam covers, and how you should prepare for it. Continue reading

What is the Series 51 exam?

The Series 51, also called the Municipal Fund Securities Limited Principal 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. Municipal securities dealers are required to designate principals to supervise their business and associated persons. To work as a principal in this capacity, you must pass either the Series 53 or Series 51 exam.

The Series 51 was created for principals who don’t otherwise deal in municipal securities and haven’t passed the Series 53. Passing the Series 51 exam qualifies you to oversee the municipal fund securities activities of a broker, dealer, or municipal securities dealer. Note that this is limited to municipal fund securities, whereas the Series 53 allows you oversee activities for all municipal securities. Therefore, the Series 51 is shorter than the Series 53 (60 questions vs 100) and focused on 529 college savings plans, local government investment pools, ABLE plans, and other funds created by a state or municipality.

The Series 51 permits you to manage, direct, and supervise any of the following activities:
    • Underwriting, trading, and selling municipal fund securities
    • Offering financial advice and consultant services to issuers of municipal fund securities
    • Communicating with customers about any of the activities above
    • Maintaining records related to any of the activities above
    • Training of principals and representatives
    • Processing, clearing, and safekeeping of municipal fund securities

With a Series 51 license, you may also manage individuals who work in multiple capacities relating to municipal fund securities, including underwriting, sales, trading, advising, and consulting with issuers of municipal fund securities.

Am I eligible to take the Series 51?

To take the Series 51 exam, you must be sponsored by your firm. You must also pass the corequisite Series 24 or Series 26 exam to obtain the Series 51 qualification.

About the Exam

The Series 51 exam consists of 60 multiple-choice questions that are worth one point each. You have one and a half hours to complete the exam, and you must score 70% or higher to pass.

Series 51 exam details

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 51 exam).

Topics Covered on the Exam

The Series 51 exam measures your knowledge of MSRB rules, rule interpretations, and federal statutory provisions applicable to allowed activities. It also measures your ability to apply these rules and interpretations to given situations in the context of municipal fund securities activities.

The Series 51 exam covers the seven areas of the MSRB Series 51 Content Outline:

Series 51 exam topics

The MSRB updates its exam questions regularly to reflect the most current rules and market practices. Solomon recommends that you print out the current version of the MSRB Series 51 Content Outline and use it in conjunction with the Solomon Series 51 Study Guide. The Content Outline is subject to change without notice, so make sure you have the most recent version.

Series 51 Example Questions

The Series 51 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 exam.

Closed Stem Format:

This item type asks a question and gives four possible answers to choose from.

For SIPC coverage purposes, which of the following people would have their multiple accounts combined?

    1. Joe, who has an individual account and a joint account with his wife
    2. Jane, who has a cash account and a margin account in her name
    3. Jack, who has an UGMA account for his daughter, a trust account for his son, and an individual account
    4. Joan, who has a partnership account for her business, an individual account, and an UTMA account for her niece
Open Stem Format:

This kind of question has an incomplete sentence followed by four possible conclusions.

Municipal fund securities are distinguished from mutual funds by their:

    1. Sellers
    2. Issuers
    3. Investors
    4. Underlying investments
“Except” (or “Not”) Format:

This type requires an answer that is incorrect or is an exception among the four answer choices.

For a 529 plan, all of the following are qualified education expenses except:

    1. Tuition
    2. Services for special needs students
    3. Books
    4. Room and board for all students
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.

Arkansas issues a 529 plan to Firm A. Firm A is in a selling agreement with Firm B. Firm B utilizes other firms to sell the plan. Which of the following are true?

    1. Firm A is a selling dealer.
    2. Firm B is a selling dealer.
    3. Firm A is a primary distributor.
    4. Firm B is a primary distributor.
      1. I and III
      2. I and IV
      3. II and IV
      4. II and III
  1. Answers: 1. B   2. B   3. D.  4. D  

For more Series 51 practice questions, try a free sample of the Solomon Exam Prep Series 51 Exam Simulator. You’ll receive instant feedback on each question with a robust explanation of the correct answer.

Taking the Series 51 Exam

FINRA administers the Series 51 exam, and you must take it at a Prometric test center via computer. Like all securities industry exams, the Series 51 is closed-book. The testing center will provide you with any materials you need to take the exam, such as a four-function calculator, erasable note board, dry-erase markers, and noise-cancelling headphones. The inspection and sign-in requirements at testing centers are stringent, so arrive at least 30 minutes before your appointment.

Test-Taking Tips

Here are some basic test-taking strategies to remember when taking your exam. Avoid lingering too long on any one question—this could cause you to run out of time and not get to other questions you know. If you’re not sure about a question, take your best guess and mark it for review. There’s no penalty for guessing, so try to answer every question.

After you’ve answered all the questions, you can go back to any questions you flagged for review. 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 factor in some time to return to the questions you flagged. However, don’t simply skip all of the difficult questions with the plan to answer them later. Instead, make a sincere effort to answer each question before moving on to the next one because your mind is fresher earlier on during the exam.

How to Study for the Series 51 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 51 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 51 Resources folder in your Solomon student account has helpful study tools, including detailed study schedules 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. Sleep consolidates learning into memory, studies show. Be good to yourself while you’re studying for the Series 51: exercise, eat well, and avoid activities that will hurt your ability to get a good night’s sleep.

You can pass the MSRB Series 51 exam! It just takes focus and determination. Solomon Exam Prep is here to support you on your path to becoming a Municipal Fund Securities Limited Principal..

Explore all Solomon Series 51 exam prep, including the Study Guide, Exam Simulator, and Audiobook.

And join the Solomon email list to hear about new product releases, industry news, and more! Just click the button below:

How to Pass the FINRA Series 22 Exam

Thinking about taking the Series 22 exam? Keep reading to learn what the Series 22 qualifies you to do, what the exam covers, and how you should prepare for it. Continue reading

What is the Series 22 exam?

The Series 22, also called the Direct Participation Programs Representative Exam, is a FINRA (Financial Industry Regulatory Authority) exam. FINRA is an independent, self-regulatory organization that creates and enforces rules for registered broker-dealer firms and their representatives. FINRA is also responsible for administering securities licensing exams, such as the Securities Industry Essentials (SIE) exam, Series 7 exam, Series 22 exam, and many more.

The Series 22 exam measures the knowledge of entry-level registered representatives to perform their duties as Direct Participation Programs Representatives. Taking the exam will help you understand your professional responsibilities, including the solicitation, purchase, and sale of limited partnerships, among other products.

What does the Series 22 permit me to do?

Did you know that the Series 22 exam is an easier path to becoming a direct participation program representative than the Series 7? The Series 22 is a shorter exam requiring less study time. Pass it and you’re on your way to being qualified to solicit and sell interests in direct participation programs (DPPs), including real estate, oil and gas, equipment leasing, BDCs, agricultural, and like-kind exchanges.

A DPP is FINRA term for a pass-through entity, such as a limited partnership or S-corp, whose shares indicate ownership, not of an operating company, but of certain physical assets of the company.  As a pass-through entity, DPPs can offer tax benefits to investors, but they are not suitable for all investors, and they are not liquid investments.

Other permitted activities and products with a Series 22 license include:

    • Limited partnerships
    • Limited liability companies
    • S corporations
Am I eligible to take the Series 22?

You must be employed and sponsored by a FINRA-member firm to take the Series 22 exam.

To obtain the Series 22 qualification, you must also pass the co-requisite Securities Industry Essentials (SIE) exam. Unlike the Series 22 exam, the SIE does not require you to be sponsored by a broker-dealer.

About the Exam

The Series 22 exam consists of 50 scored and five unscored multiple-choice questions. The five unscored questions are experimental questions and appear randomly.

Series 22 exam details

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 22 exam).

Topics Covered on the Exam

FINRA divides the questions on the Series 22 exam into four areas representing the four major job functions of a Direct Participation Programs Representative. FINRA updates its exam questions regularly to reflect the most current rules and regulations.

Series 22 exam topics

Solomon recommends that you print out the current version of the FINRA Series 22 Content Outline and use it in conjunction with the Solomon Series 22 Study Guide. The Content Outline is subject to change without notice, so make sure you have the most recent version.

Series 22 Example Questions

The Series 22 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 exam.

Closed Stem Format:

This item type asks a question and gives four possible answers to choose from.

Which of the following could potentially be a DPP? 

    1. A corporation 
    2. A REIT
    3. A company that has issued exchange-traded securities
    4. An investment company
Open Stem Format:

This kind of question has an incomplete sentence followed by four possible conclusions.

Owners of limited liability companies (LLCs) are considered:

    1. Shareholders
    2. Members
    3. Trustees
    4. Partners
“Except” (or “Not”) Format:

This type requires an answer that is incorrect or is an exception among the four answer choices.

Each of the following can cause an LP to be dissolved before the date specified in its Certificate of Limited Partnership, except:

    1. The only general partner dies.
    2. The LP declares bankruptcy.
    3. The only remaining general partners are substitute general partners.
    4. A majority of limited partners and all general partners agree to early dissolution.
  1.  
  1. Answers: 1. A   2. B   3. C  

For more Series 22 practice questions, try a free sample of Solomon Exam Prep’s Series 22 Exam Simulator. You’ll receive instant feedback on each question with a robust explanation of the correct answer.

Taking the Series 22 Exam

FINRA administers the Series 22 exam, and you must take it at a Prometric test center. The exam is given via computer. Before the exam, you’ll be able to watch a tutorial on how to take the exam.

Like all qualifying exams in the securities industry, the Series 22 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.

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 mark it for review . 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 22 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 22 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 22 Resources folder in your Solomon student account has helpful study tools, including detailed study schedules 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. Sleep consolidates learning into memory, studies show. Be good to yourself while you’re studying for the Series 22: exercise, eat well, and avoid activities that will hurt your ability to get a good night’s sleep.

You can pass the FINRA Series 22 exam! It just takes focus and determination. Solomon Exam Prep is here to support you on your path to becoming a Direct Participation Programs Representative.

Explore all Solomon Series 22 exam prep, including the Study Guide and Exam Simulator.

And join the Solomon email list to hear about new product releases, industry news, and more! Just click the button below:

How to Pass the FINRA Series 99 Exam

Thinking about taking the Series 99 exam? Keep reading to learn what the Series 99 qualifies you to do, what the exam covers, and how you should prepare for it. Continue reading

What is the Series 99 exam?

The Series 99, also called the Operations Professionals Exam, is a FINRA (Financial Industry Regulatory Authority) exam. FINRA is an independent, self-regulatory organization that creates and enforces rules for registered broker-dealer firms and their representatives. FINRA is also responsible for administering securities licensing exams, such as the Securities Industry Essentials (SIE) exam, Series 7 exam, Series 99 exam, and many more.

The Series 99 exam measures the knowledge of entry-level registered representatives to perform their duties as Operations Professionals. The exam will help you understand your professional responsibilities, including key regulatory and control requirements. It will assess your broad understanding of the following:

    • The operations functions that support a broker-dealer’s business
    • The regulations that are designed to achieve investor protection and market integrity
    • The regulations that drive operations processes and procedures conducted at a broker-dealer
    • Regulatory red flag issues and the ability to identify and address these issues to the appropriate persons within the member firm and/or to a regulatory body, if necessary
What does the Series 99 permit me to do?

Obtaining a Series 99 qualification will permit you to perform crucial functions in a broker dealer’s operations department. Duties may include customer onboarding, financial control, stock loan/securities lending, trade confirmation, and issuing account statements.

Are there any prerequisites for the Series 99?

Yes, you must also pass the co-requisite Securities Industry Essentials (SIE) exam to obtain the Series 99 qualification. To take the Series 99 exam, you must be employed and sponsored by a FINRA-member firm.

Can I register as an Operations Professional without passing the Series 99 exam?

If you hold any of the following registrations, you can qualify as an Operations Professional without taking the Series 99 exam:

About the Exam

The Series 99 exam consists of 50 scored and five unscored multiple-choice questions. The five unscored questions are experimental questions and appear randomly.

Series 99 exam details in a table

Note: Scores are rounded down to the next lowest whole number (e.g. 67.9% would be a final score of 67%–not a passing score for the Series 99 exam).

Topics Covered on the Exam

FINRA divides the questions on the Series 99 exam into two parts representing the two major job functions of an Operations Professional.

FINRA updates its exam questions regularly to reflect the most current rules and regulations. Solomon recommends that you print out the current version of the FINRA Series 99 Content Outline and use it in conjunction with the Solomon Series 99 Study Guide. The Content Outline is subject to change without notice, so make sure you have the most recent version.

Series 99 Example Questions

The Series 99 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 exam.

Closed Stem Format:

This item type asks a question and gives four possible answers to choose from.

Which of the following is not a factor that can be used to determine whether securities were not delivered in good form and are therefore subject to possible rejection?

    1. Improper endorsements
    2. Late arrival
    3. Erroneously cancelled coupons
    4. Damaged or mutilated certificates
Open Stem Format:

This kind of question has an incomplete sentence followed by four possible conclusions.

Shoestring Discount Stock Jocks owns no shares of stock in any exchange-traded companies. In its efforts to execute a buy order for your account, it would be acting as a:

    1. Broker-dealer
    2. Dealer
    3. Broker
    4. None of the choices listed
“Except” (or “Not”) Format:

This type requires an answer that is incorrect or is an exception among the four answer choices.

All of the following are definitely DTC-eligible securities, except:

    1. A stock that trades on the NYSE
    2. A stock that trades on Nasdaq
    3. An OTC security
    4. A bond that trades on the NSYE
  1.  
  1. Answers: 1. B   2. C   3. C  

Try a free sample of Solomon Exam Prep’s Series 99 Exam Simulator. You’ll receive instant feedback on each question with a robust explanation of the correct answer.

Taking the Series 99 Exam

FINRA administers the Series 99 exam, and you must take it at a Prometric test center. The exam is given via computer. Before the exam starts, you’ll take a tutorial on how to take the exam. After you finish the tutorial, the exam will begin and you’ll have one hour and 30 minutes to complete it.

Like all qualifying exams in the securities industry, the Series 99 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. Or, a digital calculator and notepad will be available within the computer testing platform.

The inspection and sign-in requirements at test centers are stringent, so plan to arrive at least 30 minutes before your scheduled test appointment.

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 mark it for review . 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 99 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 99 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 99 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 99: exercise, eat well, and avoid activities that will hurt your ability to get a good night’s sleep.

You can pass the FINRA Series 99 exam! It just takes focus and determination. Solomon Exam Prep is here to support you on your path to becoming an Operations Professional.

Explore all Solomon Series 99 exam prep, including the Study Guide, Exam Simulator, and Video Lecture.

And join the Solomon email list to hear about new product releases, industry news, and more! Just click the button below:

How to Pass the MSRB Series 54 Exam

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.

Series 54 exam details in a table

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 Series 54 exam covers the three main topic areas of the MSRB Series 54 Content Outline:

Series 54 exam topics in a table

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?

    1. Providing a municipality with a price quote for an investment product within the municipality’s investment criteria
    2. Offering the municipality a possible price range for a new issue
    3. Displaying a comparison of debt financing structures
    4. 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:

    1. The duties of care and loyalty
    2. The duties of care and suitability
    3. The duties of loyalty and prudence
    4. 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:

    1. A description of the advisor’s compensation arrangement
    2. Educational background information about the municipal advisor’s associates
    3. The termination date of the relationship between the advisor and the client
    4. 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?

    1. Designation of a single chief compliance officer
    2. Annual certification of supervisory policies
    3. Providing clients with an annual update of supervisory practices
    4. Designation of a principal at each of the firm’s offices to oversee the system
    1. I and II
    2. I and IV
    3. II and III
    4. III and IV
  1.  

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:

How to Pass the NFA Series 3 Exam

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.

Series 3 exam details in a table

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.

Series 3 topics in a table

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?

    1. Livestock
    2. Automobiles
    3. Corn
    4. 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:

    1. American terms
    2. European terms
    3. The same terms in which the foreign currency is quoted in the spot market
    4. 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:

    1. They are sold at discount to the par value.
    2. They pay low periodic interest payments.
    3. They are considered the safest of Treasury securities.
    4. 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?

    1. A long futures contract
    2. A short futures contract
    3. A short call and a long put on the futures contract
    4. A long call and a short put on the futures contract
    1. I and III
    2. I and IV
    3. II and III
    4. 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:

    1. Last delivery date
    2. First delivery date
    3. First notice date
    4. Last trade date
    1. IV, II, III, I
    2. III, II, IV, I
    3. III, IV, II, I
    4. 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!

Explore all Solomon Exam Prep Series 3 study materials, including the Study Guide and Exam Simulator.

And join the Solomon email list to hear about new product releases, industry news, and more! Just click the button below:

How to Pass the MSRB Series 53 Exam

What is the Series 53 exam? Learn what a Series 53 license qualifies you to do, what the exam covers, and how you should prepare for it. Continue reading

What is the Series 53 exam?

The Series 53, also called the Municipal Securities 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.

Passing the Series 53 exam qualifies you to oversee the municipal fund securities activities of a securities firm or bank dealer. You’ll also be qualified to supervise associates who engage in various municipal securities activities. In this capacity, a Municipal Securities Principal manages, directs, or supervises one or more of the following activities:

    • underwriting of municipal securities
    • trading of municipal securities
    • buying or selling municipal securities from or to customers
    • rendering of financial advisory or consultant services to issuers of municipal securities
    • communications with customers about any of the above activities
    • maintaining records of the above activities
    • processing, clearing, and safekeeping of municipal securities
    • training of principals or representatives
Are there any prerequisites for the Series 53?

Yes. To take the Series 53 exam, you must have already passed the Series 52, Municipal Securities Representative Qualification Exam, and the FINRA Securities Industry Essentials (SIE) Exam. However, if you had passed the FINRA Series 7 exam before November 7, 2011, then that qualifies you to take the Series 53.

Like the Series 52, you must be employed and sponsored by a broker-dealer to take the Series 53 exam.

About the Exam

The Series 53 exam consists of 100 scored multiple-choice questions covering the six topic areas of the MSRB Series 53 Content Outline.

Series 53 exam details in a table

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 53 exam).

Topics Covered on the Exam

The MSRB divides the questions on the Series 53 exam into six main areas:

Series 53 exam topics

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 53 Content Outline and use it together with the Solomon Series 53 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 53 exam consists of multiple-choice questions, each with four options. You will see these question structures:

Closed Stem Format:

This item type asks a question and gives four possible answers to choose from.

Which agencies enforce MSRB rules for broker-dealers?

    1. FDIC and FINRA
    2. SEC and FINRA
    3. Federal Reserve Board and MSRB
    4. SEC and MSRB
Incomplete Sentence Format:

This kind of question has an incomplete sentence followed by four possible conclusions.

Municipal securities dealers are required to maintain records of customer complaints for:

    1. Six years
    2. Three years
    3. Two years
    4. Four years
“EXCEPT” Format:

This type requires you to recognize the one choice that is an exception among the four answer choices.

A person must be registered as a Municipal Securities Representative to engage in all of the following except:

    1. Communicating with public investors in municipal securities
    2. Underwriting municipal securities
    3. Providing investment advice about municipal securities
    4. Trading municipal bond funds
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 of the following must the underwriter give to a customer who purchases a municipal bond subject to a negotiated offering within the first 25 days following the end of the underwriting period?

    1. The final official statement
    2. The investor brochure
    3. The amount of the underwriting spread
    4. The percentage of orders that were filled in the presale period
    1. I and III
    2. I and II
    3. III and IV
    4. 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.

Arrange the following order types from highest priority to lowest priority:

    1. Designated orders
    2. Group net orders
    3. Member takedown orders
    4. Presale orders
    1. I, II, III, IV
    2. IV, I, II, III
    3. IV, II, I, III
    4. I, IV, III, II

 

Answers: 1. B   2. A   3. B   4. A   5. C

For an even better idea of the possible question types you might encounter on the Series 53 exam, try Solomon Exam Prep’s free Series 53 Sample Quiz.

Taking the Series 53 Exam

The Financial Industry Regulatory Authority (FINRA) administers the Series 53 exam, and you must take it at a Prometric test center. Like all qualifying exams in the securities industry, the Series 53 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 will likely 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.

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 53 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, the Solomon Series 53 Audiobook will be launching soon! 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 53 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 53 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.
    • 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 53: exercise, eat well, and avoid activities that will hurt your ability to get a good night’s sleep.

You can pass the MSRB Series 53 Exam! It just takes focus and determination. Solomon Exam Prep is here to support you on your path to becoming a Municipal Securities Principal!

Explore all Solomon Exam Prep Series 53 study materials, including the Study Guide and Exam Simulator.

And join the Solomon email list to find out when the Series 53 Audiobook is released! Just click the button below:

How to Pass the MSRB Series 52 Exam

What is the Series 52 exam? Learn what a Series 52 license qualifies you to do, what the exam covers, and how you should prepare for it. Continue reading

What is the Series 52 exam?

If you work for a municipal securities dealer and want to underwrite, trade, and sell municipal securities, then you’ll need to pass the Series 52 exam. You’ll also need to pass the Series 52 exam if you work for a municipal dealer and want to do the following activities:

    • Offer financial advice and consultant services to issuers of municipal securities
    • Conduct research and give investment advice on municipal securities
    • Communicate directly or indirectly with public investors about municipal securities

Also known as the Municipal Securities Representative Qualification Examination, the Series 52 was created by the Municipal Securities Rulemaking Board (MSRB). The MSRB is the principal regulator of the municipal securities market. It establishes rules and professional qualification standards for municipal securities dealers and municipal advisors. Those standards include qualification exams for professionals who work in the municipal securities industry. Passing the Series 52 qualifies you to work as a Municipal Securities Representative.

What are municipal securities?

Governments need to finance their activities by raising money, but they can’t sell stocks like businesses. Instead, governments issue municipal bonds (munis) to fund day-to-day operations and special projects.

Are there any prerequisites for the Series 52?

Yes. To become a Municipal Securities Representative, you must also pass the FINRA Securities Industry Essentials (SIE) exam. The SIE is an entry-level securities qualification exam. Unlike the Series 52, you don’t need to be employed and sponsored by a broker-dealer to take the SIE. It’s “co-requisite” with the Series 52, so you can take the exams in any order, but Solomon recommends you take the SIE first. The SIE is a foundational exam, and the knowledge you learn studying for the SIE will help you when you study for the Series 52.

About the Exam

The Series 52 exam consists of 75 scored and five unscored multiple-choice questions covering the three topic areas of the MSRB Series 52 Content Outline. The five additional unscored questions are ones that the exam committee is trying out. These are unidentified and are distributed randomly throughout the exam.

About the Series 52 exam

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 52 exam).

Topics Covered on the Exam

The MSRB divides the questions on the Series 52 exam into three main areas:

Topics on the Series 52 exam

Within these three main parts, you’ll need to learn about many topics, including:

    • Municipal bonds
    • Municipal fund securities
    • MSRB rules
    • Customer accounts
    • Municipal securities trading
    • Recordkeeping
    • Suitability
    • Settlement and delivery
    • Taxation
    • Federal securities acts
    • The SEC
    • Municipal securities underwriting
    • Marketability
    • Political contribution rules
    • Supervisory obligations
    • Market indicators
    • Economic theory
    • Fiscal and monetary policy
    • Interest rates
    • Business cycles
    • The Federal Reserve Board

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 52 Content Outline and use it in conjunction with the Solomon Series 52 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 52 exam consists of multiple-choice questions, each with four options. You will see these question structures:

Closed Stem Format:

This item type asks a question and gives four possible answers to choose from.

Which of the following is a reason that a municipal government might issue a revenue bond instead of a general obligation bond?

    1. The issuer wishes to pay less interest to the bondholders.
    2. The issuer has met its statutory debt limit and does not want to seek voter approval for the issue.
    3. The issuer wants the bond to have a higher credit rating.
    4. The issuer has the ability to impose taxes.
Incomplete Sentence Format:

This kind of question has an incomplete sentence followed by four possible conclusions.

A make whole call provision is a provision in a bond that allows the issuer to:

    1. Call the bond and pay the bondholder a lump sum payment that includes not just the principal but also the net present value of all future coupon payments that the bondholder would have received if not for the call.
    2. Call the bond and pay the bondholder a lump sum payment that includes the call price of the bond.
    3. Redeem the entire issue early to issue a new set of bonds at a lower interest rate.
    4. Call the bond when the total amount of the interest payments is equivalent to the amount of the principal.
“EXCEPT” Format:

This type requires you to recognize the one choice that is an exception among the four answer choices.

A financial advisor may buy securities from an underwriter for its own or its customers’ accounts if all of the following are true except:

    1. The advisor must not receive any additional underwriting compensation when buying securities for their own account.
    2. The advisor must not receive any additional underwriting compensation when buying securities for customer accounts.
    3. The advisor must disclose the conflict of interest to their customers at or before confirmation of the sale.
    4. The advisor must disclose the conflict of interest to the issuer.
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.

_________ risk is a concern for bondholders when interest rates _________.

    1. Interest rate; rise
    2. Call; rise
    3. Interest rate; fall
    4. Call; fall
    1. II and IV
    2. II and III
    3. I and IV
    4. I and III
  1.  

Answers: 1. B   2. A   3. D   4. C

For an even better idea of the possible question types you might encounter on the Series 52 exam, try Solomon Exam Prep’s free Series 52 Sample Quiz.

Taking the Series 52 Exam

The Financial Industry Regulatory Authority (FINRA) administers the Series 52 exam, and you must take it at a Prometric test center. Like all qualifying exams in the securities industry, the Series 52 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 will likely 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.

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 52 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, the Solomon Series 52 Audiobook will be launching soon! The Audiobook is a word-for-word reading of the Study Guide.
    • Answer practice questions 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. When you’re 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 52 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 previous blog post to learn more about this strategy!).
Take advantage of Solomon’s supplemental tools and resources:
    • Use all the resources. The Series 52 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.
    • 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 52: exercise, eat well, and avoid activities that will hurt your ability to get a good night’s sleep.

You can pass the MSRB Series 52 Exam! It just takes focus and determination. Solomon Exam Prep is here to support you on your path to becoming a municipal securities representative!

Explore all Solomon Exam Prep Series 52 study materials, including the Study Guide and Exam Simulator.

And join the Solomon email list to find out when the Series 52 Audiobook is released! Just click the button below: