Info 1: Series 16 exam definition
Info 2: How Series 16 works
Info 3: series 16 and series 52 exam
Info 4: example for series 16 exam
Quick pick:
Tests that are used to qualify any person as a representative of a research analyst are known to be series 16 exams.
Opening information:
Series 16 exam sentence breaks into three words series, 16, and exam. Series means parts of one subject, 16 means number, and the exam is a test. Series 16 exam means qualifying a specific person for something.
So this article contains information about what is Series 16 exams in the public market, how the Series 16 exam works, what is the difference between the Series 16 exam and the Series 52 exam, and finally rules of the Series 16 exams?
Info 1: Series 16 exam definition
Whenever we need to audit and create any kind of accounting report for any kind of public company, they need to have a license and Authorization for doing such an audit.
Otherwise, that report won’t be reported to the public shareholders of their business and new stock investors, because according to the Security and Exchange Commission, no audit report financial statement is able to filed without doing with public certificate chatted account of auditors.
This same concept would be applied to the person who wants to work as a research analyst in any kind of registered company and works in the position of providing all information about equities business to take decisions for public Investors.
So any research analyst needs to have a license and authorization from the resident government to do the equities research job for any public company.
Which that licensed and approved are gained from the examination imposed by the government self-regulated organization for working on any certain research position for a public equities company.
Here the exam that is taken for the research analyst position is named a series 16 exam, so let’s dive into the exam function and its works.
Info 2: How Series 16 works
Series 16 exams don’t represent any of the specific things or objects instead they are tests which is used to qualify a certain individual as a research analyst in the position of supervisor.
However, this exam would have two parts in the test part 1 and part 2, where each of the parts had a different Separated time to complete the whole test.
Supposedly if the exam is not used to qualify the individual or person as an approver of supervisor analysis of the research reports that exam wouldn’t be considered as a series 16 exam.
Once these candidates pass the test of the series 16 exam, they are allowed to do research reports and manage the equities securities and debt in the public market.
They could also able to do a technical analysis report on the stock using its trading volume And price. And providing recommendations on the decrease and increase of the holding of a needed Industry and sector.
Series 16 exam had two parts and each part had 50 questions. In the first part, the Candidate must write the correct answer for 36 questions with a pass rate of 72 percent in one hour and thirty minutes.
Next on part two candidate must need to answer the 37 questions right to pass the exam of series 16 part 2 with a pass rate of 74 percent in 2 hours time.
If the exam taker fails to finish the exam in the provided time, they are not allowed any more extra time to write the exam of series 16 in part 1 and part 2. And most importantly all the questions came in the manner of multiple choice questions.
Most people confuse the series 16 exam and series 52 exam, so let’s jump into the key difference in it anyway.
Info 3: series 16 and series 52 exam
Series 16 exam is the basic level test for the candidate who performs the research on the equities and dents instruments.
On the other side, the series 52 exam does not promote the Individual as a research analyst indeed as a municipal securities representative
But it’s also one type of Securities exam regulated by the financial industry regulated authority (FINRA).
To make more sense of the series 16 exam, let’s look into one brief example below.
Info 4: example for series 16 exam
Say you and your nephew is a dealers who promote the different kinds of securities in the public market. Your job is to work as a research analyst for one Investment firm and offer such information to investors.
Next, your nephew’s job is not about researching the equities but selling and involve in local government securities and trade, so your nephew couldn’t work as a research analyst like you. Here your job refers to the exam of series 16 exam and your nephew’s job refers to the exam of series 52.