Trading Jobs Securities Licensing 2 — Questions and Answers
Question 1: Which FINRA exam qualifies a person to supervise other registered representatives?
- Series 7
- Series 24 (Correct answer)
- Series 63
- Series 55
Correct answer: Series 24
The Series 24 (General Securities Principal) exam qualifies individuals to supervise sales and trading activities at broker-dealers.
Question 2: What is the main purpose of the Series 3 exam?
- Equity trading
- Commodity futures trading (Correct answer)
- Fixed income trading
- Options market making
Correct answer: Commodity futures trading
The Series 3 (National Commodity Futures Exam) is required for persons who solicit or accept orders for commodity futures contracts.
Question 3: A 'cooling-off' period of how many days applies if a candidate fails a FINRA exam three times?
- 30 days
- 60 days
- 90 days
- 180 days (Correct answer)
Correct answer: 180 days
After failing a FINRA exam three or more times, candidates must wait 180 days before retaking it.
Question 4: Which exam is specifically designed for equity traders working on a trading desk?
- Series 55
- Series 57 (Correct answer)
- Series 79
- Series 86
Correct answer: Series 57
The Series 57 (Securities Trader Representative Exam) replaced the Series 55 for equity traders in 2016.
Question 5: The Series 79 exam qualifies professionals to work in which area?
- Commodity futures
- Investment banking (Correct answer)
- Insurance products
- Currency trading
Correct answer: Investment banking
The Series 79 (Investment Banking Representative Exam) qualifies individuals to conduct investment banking activities such as M&A advisory and underwriting.
Question 6: Which regulatory body oversees FINRA-licensed broker-dealers?
- CFTC
- OCC
- SEC (Correct answer)
- Federal Reserve
Correct answer: SEC
The Securities and Exchange Commission (SEC) has oversight authority over FINRA, which in turn regulates broker-dealers.
Trading Jobs Securities Licensing 2
Which FINRA exam qualifies a person to supervise other registered representatives?