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Series 24 Exam Overview

The Series 24 exam, officially called the General Securities Principal Qualification Examination, is a FINRA-administered test required for individuals who will supervise or manage branch activities at a broker-dealer. Passing the Series 24 qualifies you to oversee the business of a brokerage firm, supervise registered representatives, and ensure compliance with securities laws and FINRA rules.

This credential is essential for those seeking a principal or supervisory role in the securities industry, especially in operations involving sales, trading, underwriting, and advertising.

What the Series 24 Exam Covers

The Series 24 is broad in scope, assessing knowledge across multiple areas of supervision and compliance. FINRA divides the exam into five job functions:

1. Supervision of Registration of the Broker-Dealer and Personnel Management Activities (~9% of the exam)
• Hiring, onboarding, and maintaining registration records for associated persons
• Form U4/U5 procedures and continuing education requirements
2. Supervision of General Broker-Dealer Activities (~28%)
• Supervision of market-making, trading, underwriting, and proprietary activities
• Order handling, best execution, and trade reporting rules
3. Supervision of Retail and Institutional Customer-Related Activities (~25%)
• Suitability obligations, know-your-customer (KYC) rules, and account supervision
• Handling customer complaints, disputes, and account transfers
4. Supervision of Trading and Market-Making Activities (~22%)
• SEC and FINRA trading rules, short sale regulations, and reporting requirements
• Market maker obligations and conduct rules
5. Supervision of Investment Banking and Research (~16%)
• Underwriting rules and procedures
• Communications between research and investment banking
• Research report disclosures and conflicts of interest

Exam Structure & Requirements

• Number of Questions: 150 scored multiple-choice questions, plus 10 unscored pretest questions (160 total)
• Time Allowed: 3 hours and 45 minutes
• Passing Score: 70% (105 correct out of 150 scored)
• Cost: $150 exam fee (as of 2025)
• Delivery: Computer-based at Prometric testing centers or via online remote proctoring

Prerequisites

Candidates must be sponsored by a FINRA-member firm or another self-regulatory organization (SRO) and hold one of the following representative-level registrations before taking the Series 24:

• Series 7 (General Securities Representative)
• Series 57 (Securities Trader Representative)
• Series 79 (Investment Banking Representative)
• Series 86/87 (Research Analyst)
• Or other qualifying registrations as listed by FINRA

Career Roles Requiring the Series 24 License

Passing the Series 24 qualifies you for roles such as:

• General Securities Principal
• Branch Office Manager
• Compliance Supervisor
• Trading or Sales Supervisor
• Operations Principal (depending on firm structure)

It authorizes you to supervise most broker-dealer business lines, but certain specialized areas—like options, municipal securities, and financial operations—require additional exams (e.g., Series 4, Series 9/10, Series 27/28).

Preparing for the Series 24 Exam

The Series 24 is often considered a “rules-heavy” exam, requiring mastery of FINRA, SEC, and MSRB regulations, as well as supervisory procedures. Successful candidates typically:

• Study FINRA’s content outline as the primary blueprint
• Take multiple timed practice exams to build speed and familiarity
• Focus on compliance-related case studies and scenario-based questions
• Review corporate finance, underwriting procedures, and research rules
• Drill specific supervisory responsibilities across all five job functions

Final Thoughts

The Series 24 exam is a crucial credential for anyone pursuing a supervisory or managerial role at a broker-dealer. It ensures that principals have the knowledge and judgment to oversee sales, trading, compliance, and investment banking operations effectively.

While challenging due to its breadth and regulatory depth, strong preparation, consistent practice testing, and a structured study plan can set you up for success. Passing the Series 24 not only qualifies you to supervise a wide range of securities activities but also positions you as a leader in the financial services industry.