The general securities principal exam, commonly referred to as the Series 24 exam, is administered by the U.S. Financial Industry Regulatory Authority (FINRA) which qualifies a registered individual to supervise or manage branch activities such as corporate securities, REITs, variable contracts, and venture capital; a general principal may also approve advertising and sales literature, including communications regarding municipal securities. The exam covers topics such as supervision of investment banking, trading, customer accounts, and the primary/secondary markets.
A Series 24 license does not qualify an individual to function as a:
The Series 24 Exam is made up of 150 questions. Candidates have up to 3.5 hours to take the exam. 70% (105 correct answers) is considered a passing grade. In order to take the Series 24 exam, a candidate must be sponsored by a member firm of FINRA or another SRO (self-regulatory organization).
| Test breakdown | Number of questions | % of exam | |
|---|---|---|---|
| Supervision of investment banking activities | 33 | 22% | |
| Supervision of trading and market making activities | 31 | 21% | |
| Supervision of brokerage office operations | 29 | 19% | |
| Sales supervision; general supervision of employees; regulatory framework of FINRA | 43 | 29% | |
| Compliance with financial responsibility rules | 14 | 9% |