The General Securities Principal Exam is more commonly known as the Series 24 Exam. This test is designed to measure the competency of an entry-level general securities principal candidate. It will test your knowledge of critical management functions including the rules and statutes applicable to the supervision of a general securities broker-dealer. The test is administered by FINRA. Start you exam prep right now with our free Series 24 practice exam.
FINRA rules requires that each member firm make and maintain a customer complaint file which must be retained for a minimum of:
Absent DNR instructions, which of the following customer orders for a NYSE listed stock will be adjusted when the stock goes ex?
market at the close
not held order
open sell stop-limit order
day buy limit order
Sub-penny quotes are permitted to be given by market makers under what conditions?
the stock is trading below $1.00
the stock is trading below $5.00
the stock is trading below $175.00
under no circumstances – the minimum unit of quotation is the penny
As the BOM (Branch Office Manager) of a sizeable branch operation, one of your duties is the recruiting of candidates to become registered representatives. Prior to your signing the Form U-4 and submitting it for regulatory approval, which of the following are verification requirements of FINRA?
you must verify residences dating back 10 years
you must verify employment dating back 10 years
you must verify employment dating back no less than 5 years
you must verify residences dating back no less than 5 years
A sale of NASDAQ stock remains unsettled 3 business days after the trade. A buy-in will occur if the transaction remains unsettled:
2 additional business days
5 additional business days
7 additional calendar days
10 additional business days
Required customer signatures, at the time of opening a customer margin account, include each of these documents except:
loan consent agreement
none of these is an exception
A margin account shows long 200 shares XYZ at $140/share with a debit balance of $15,000. Compute the maximum amount which may be rehypothecated by the broker-dealer.
50% of current market value, marked to the market daily
Market maker D wishes to begin entering quotes on the stock of Beta Tech, Inc., a NASDAQ listed issuer.
Looking at the quotes entered by Market makers A, B and C in this stock, which of the following quotes entered by firm D would not be compliant?
Market Maker A 32.25 – 32.55
Market Maker B 32.26 – 32.56
Market Maker C 32.22 – 32.53
32.50 – 32. 65
32.15 – 32.50
32.30 – 32.54
32.15 – 32.25
With respect to OSJ inspections,
they may be conducted by FINRA as frequently as the SRO deems necessary
they may be conducted by the member on an annual or bi-annual basis based upon the member’s business and size.
they must be conducted by the member firm at least annually.
answers A. and C. are correct
Under existing SEC regulations, a tender offer must remain open for a period no less than:
10 business days
20 business days
the time periods set forth in the Hart Scott Rodino Act
Dealer to dealer delivery of a 680 share transaction in the common stock of Wall Freight, Inc., a non-NASDAQ issuer, would meet the requirements of the Uniform Practice Code in all of the following cases except:
a single certificate for 680 shares
two certificates for 340 shares each
four certificates for 150 shares each and a certificate for 80 shares
all of the above
In which of the following situations may a member firm place a registered representative into an inactive status?
the rep has decided to go back to school full time to obtain an MBA degree and intends to return to the firm upon completion of the program.
the rep has been advised by a physician that for health reasons, a leave of absence should be taken without delay.
the rep has received military orders requiring the rep to report for active duty assignment.
any of the above quality for inactive status.
As branch manager, you are seeking qualified candidates to join the firm. As a general securities broker/dealer, you are very concerned with the relevance of FINRA registrations which those you are interviewing may already possess. Your firm markets a substantial number of REITs and closed-end companies.
Which of the below registrations would be acceptable for the sale of these products?
I. Series 24
II. Series 62
III. Series 11
IV. Series 6
I and II
I, II and IV
III and IV
I, II, III and IV
Rule 105 of Regulation M pertains to which of the following?
short selling of outstanding shares of companies currently in registration for a follow-on offering.
stabilization of new issues.
passive market making
Compute the proceeds mark up given the following trade detail: sale of 100 shares of XYZ at 50 net including ½ point mark-down, with proceeds applied to the purchase of 200 shares of ABC at 25 net when the selling firm’s quote in ABC is 24.50 – 24.80, and the inside quote in ABC is 24.50 – 24.75.
Series 24 Study Material
Series 24 Exam
The Series 24 Exam consists of 160 multiple choice questions, but only 150 of the questions are scored. You have 3 hours and 45 minutes to complete this test, and the passing score is 70%. These are the major content areas with the number of Series 24 exam questions for each topic:
- Supervision of Investment Banking, Underwriting, and Research (33 Questions)
- Supervision of Trading and Market Making Activities (31 Questions)
- Supervision of Brokerage Office Operations (29 Questions)
- Sales Supervision and General Supervision of Employees (43 Questions)
- Compliance with Financial Responsibility Rules (14 Questions)
The best way to get started with your Series 24 exam prep is with a good study guide and lots of practice questions. Work through our free Series 24 sample questions to get an idea about what sort of questions to expect. This is a challenging test so be sure to dedicate plenty of time to your test prep and review. Good luck with your exam!