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How to Pass a Series 24

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Financial services professionals take the Series 24 exam when they are interested in moving into a supervisory (Federal Industry Regulatory Authority) FINRA role. Investment banking, sales, trading, and account management supervisors must all pass the Series 24 exam.

Find a Series 24 sponsor. You must have a Series 24 sponsor in order to sit for the exam. Most typically, the firm that employs you will act as your sponsor. Other FINRA advisors can also act as sponsors.

Familiarize yourself with the layout and style of the test. This will help you remain cool and calm once the test begins, and a level head will improve your chances of passing. The test contains 150 multiple choice questions regarding supervisory policies and regulations, and compliance rules. You will have 3 1/2 hours to complete the test and must answer 70% of the questions correctly to receive a passing grade.

Know the topics in which your knowledge will be tested on the Series 24. These include FINRA rules and regulations, securities exchange acts, issuer requirements, initial public offering rules, shelf distributions, mergers and acquisitions, securities distribution, underwriting rules, stabilization, SEC tender rules, regulatory and liability rules. Brush up on your knowledge of all of these areas by studying the Securities Exchange Act of 1934, the Investment Company Act of 1940, the Trust Indenture Act of 1939 and NASDAQ, NYSE and OTC market rules.

Pick your preparation method. There are various online, seminar, and interactive Series 24 training courses available. Choose the preparation method you are most comfortable with, and make sure that your study method includes former Series 24 practice questions.

Visit a bookstore or library and obtain practice guides for the Series 24. These are available in the "Career" section.

Review your materials thoroughly and reflect on your work experience. The typical preparation time for the Series 24 exam is 50-60 hours. A lot of the information you need to know should already be part of work experience.

Ask coworkers and employers about their Series 24 experiences. There is no better source than those who have passed the test in the past. Make sure you know the question structure and time limits.

References

About the Author

Laura Catella has been a professional freelance writer since 2004. She specializes in Web content and copy, and promotional emails in the home and professional services niches. She was an editor for the 2008 edition of "Inside New York." Catella holds a Bachelor of Arts in economics with a minor in creative writing from Columbia University in New York.

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