Common Mistakes to Avoid on the Series 24 Exam

⚠️ Common Mistakes to Avoid on the Series 24 Exam

The Series 24 exam—also known as the General Securities Principal Qualification Exam—is a challenging test for individuals seeking to supervise and manage broker-dealer operations. With 150 multiple-choice questions and a broad range of topics, avoiding common errors is critical to passing on the first attempt.

Here’s a breakdown of the most frequent mistakes candidates make—and how to prevent them.

📘 1. Trying to Memorize Without Understanding

The Mistake: Relying purely on rote memorization of FINRA rules and definitions.

Why It Fails: The Series 24 tests application of rules, not just knowledge. You must understand how and when to apply regulatory principles to supervisory scenarios.

✅ Fix: Focus on real-world examples of rule violations and supervisory oversight. Use scenario-based questions to reinforce your understanding.

⏱️ 2. Mismanaging Time During the Exam

The Mistake: Spending too much time on complex questions early on.

Why It Fails: With 150 questions and a 3-hour, 45-minute limit, poor time management can leave you rushing at the end and second-guessing earlier answers.

✅ Fix: Pace yourself. Aim for 1.5 minutes per question and flag difficult ones to return to later. Don’t get stuck on the first few questions.

📚 3. Neglecting FINRA Rule Application

The Mistake: Skimming over the practical application of FINRA rules (e.g., Rule 3110, 4512, 2210).

Why It Fails: The exam doesn’t just ask “what is Rule X?” — it asks how it applies in supervision. Many questions involve gray areas or complex judgment calls.

✅ Fix: Use practice exams that include rule-based scenarios. Focus especially on communications, recordkeeping, branch supervision, and suitability.

🧾 4. Underestimating the Communications with the Public Section

The Mistake: Assuming it’s a minor part of the exam.

Why It Fails: Advertising, social media policies, and correspondence are heavily tested and require detailed rule knowledge (FINRA Rule 2210 and related guidelines).

✅ Fix: Study distinctions between retail, correspondence, and institutional communications, and know when principal approval is required.

🔍 5. Skipping Over Market Making and Underwriting Rules

The Mistake: Over-focusing on general rules while ignoring underwriting and distribution mechanics.

Why It Fails: Market-making, syndicate settlement, stabilization, and disclosure during public offerings are core Series 24 topics.

✅ Fix: Know Regulation M, Rule 101, and underwriting rules cold. Practice identifying violations in IPO scenarios.

📉 6. Ignoring Score Reports After Practice Tests

The Mistake: Taking practice tests without reviewing missed questions in depth.

Why It Fails: Without reviewing incorrect answers, you’re likely to repeat the same mistakes on test day.

✅ Fix: Track missed questions by topic area, and schedule extra review sessions for underperforming categories (e.g., supervision of customer accounts, AML, private placements).

🧠 7. Waiting Too Long to Review Difficult Topics

The Mistake: Pushing tough subjects like AML procedures or registration exemptions to the end.

Why It Fails: Procrastinating creates last-minute stress and poor retention.

✅ Fix: Tackle one tough topic per day starting in Week 1. Mix it with easier content to stay balanced.

🧩 Bonus: Don’t Forget the Ethics Component

While ethics isn’t a large standalone section, many scenario-based questions test your understanding of ethical practices, disciplinary action, and client fairness.

✅ Fix: Review Code of Procedure, disciplinary actions, and ethical handling of complaints and escalations.

🚀 Pass Smarter, Not Harder

Avoiding these mistakes gives you a real edge on one of the most important supervisory exams in the industry. Use structured prep systems, detailed diagnostics, and realistic simulations to boost your score.

Start preparing today at:
👉 finra-exam-mastery.com