Info 1: series 87 exam definition
Info 2: how series 87 exam works
Info 3: series 87 exam vs series 24 exam
Info 4: example for series 87 exam
Opening information:
series 87 exam sentence breaks into three words series, 87, and exam. Series means part of the thing in the whole event, 87 is used to represent one matter, exam means test to qualify one person on a particular skill.
Series 87 exam is a test to qualify one human on a specific part of a subject, so now let’s have a look at what is a series 87 exam, how the series 87 exam works in the public market, and what is the difference between the series 87 exam and series 24 exam, finally one clear example of series 87 exam.
Info 1: series 87 definition
Whenever any of the people who had a small start-up business need to track and record all the accounting debits and credits they don’t need to attend any class or take an exam to get qualified.
They could do the accounting by themselves and submit their reports on the new start-up Industry.
But when comes to the accounting and chatted reports for the other big private Companies or public Corporations, certain individual needs a qualified authorized license or certificate to the accounting and analysis reports for any kind of business.
At the same time, they also need to get the license legally by qualifying through rights and enforced exams from the ruled government. When they are not, they couldn’t be allowed to do any accounting and equity analysis work for any kind of business.
This same concept would be applied in the public market when one individual needs to prepare the equity research report for any kind of company and release it to their authorized people and firm which must to skilled and qualified on a certain subject through the test.
Here the test of exams that are used to qualify certain individuals as a research analyst is named series 87. So now let’s dive into know about the series 87 exam.
Info 2: series 87 exam works
The series 87 exam doesn’t represent any of the specific things or objects, instead, it’s a test that is used to certify the individual as a research analyst.
However, series 87 wouldn’t be allowed taken directly without a basic exam of the Securities Industry
Essential exam (SIE). because whenever any of the people want to be involved in public securities activities they must understand the basic rules and regulations of the public market.
Therefore any of the people who attended and passed the exam of series 87 after the passing of SIE, they are certificate to become a research analyst in a financial institution that participates in the public market.
Supposedly if the certain individual had certified and passed the exam of charter financial analyst or chartered market technician at both levels in any one of the examinations, they won’t need to take an exam of series 87.
Moreover, the series 87 exam would be a joint exam with series 86, which is regulated by the Financial Industry Authority.
The series 87 exams occupied the 50 questions by multiple choice and with a 74 percent success pass rate. This means candidates who attended the exam must need to write the right answers for at least 37 questions among the total 50 questions.
Where this exam of all the attendances would be allowed to write the exam within one hour and forty-five minutes, with no other extra time given after the time up.
So the person who didn’t pass the exam wouldn’t be allowed and licensed as a member of the FINRA or another self-regulated organization.
Most people confuse the series 87 and series 24 exams, so let’s jump into the key difference in it anyway.
Info 3: Series 87 vs Series 24 exam
The difference between series 87 and series 24 is, that series 24 completely refers to the qualifications of the general securities principal
to be a manager for the broker Services or dealer.
On the other side, series 87 is the test that refers to and qualifies the individual in the research analyst skill but specifically in the public securities. To make you more clear about the series 87 exam, let’s look into one brief example below.
Info 4: example of series 87 exam
Say you and your brother are a public securities involver but not in the same position, despite the distinct section.
Your brother possesses the skill and qualifications the research any kind of equities and update the new growth and trends in your broker Industry. And your the manager and principal of your whole Industry which is a licensed individual for selling public Securities.
Here your qualifications possess the exam of series 24 and your brother’s activities certificates the exam of series 87.