What Topics Are Covered on the Series 24 Exam?

📘 What Topics Are Covered on the Series 24 Exam?

The Series 24 exam, also known as the General Securities Principal Qualification Exam, qualifies individuals to supervise and manage the activities of registered representatives at a broker-dealer. It’s designed for professionals taking on supervisory or managerial roles in a firm—and it covers a wide range of compliance, operational, and regulatory topics.

Here’s a breakdown of the topics and functions you’ll be tested on:

🧾 1. Supervision of Registration of Broker-Dealer and Personnel (9%)

• FINRA and SEC registration requirements
• U4/U5 forms and CRD system
• Statutory disqualification and eligibility
• Continuing education requirements
• Fingerprinting and background checks
• Supervisory responsibilities for onboarding and disclosure

📋 2. Supervision of General Broker-Dealer Activities (45%)

This is the largest section of the exam and includes:

• Supervision of communications with the public
• Review and approval of retail, institutional, and correspondence material
• Supervision of trading activity
• Review of order tickets, trade reporting, and recordkeeping
• Best execution and fair pricing practices
• AML compliance, privacy rules, and cybersecurity procedures
• Supervising firm’s participation in IPOs and secondary offerings

💼 3. Supervision of Customer Accounts (17%)

• Types of accounts: individual, joint, custodial, retirement, trust, corporate
• Suitability, KYC, and customer risk profiling
• Supervisory review of new account forms
• Margin and option account supervision
• Account transfers (ACAT), complaints, and red flags
• Monitoring for suspicious or unethical activities

📈 4. Supervision of Trading and Market Making (17%)

• Order types and execution
• Market maker obligations and quoting
• Regulation NMS, limit order protection, and trade-through rules
• Trade reporting (TRACE, ORF, TRF)
• Firm trading and customer priority
• Manipulative practices (e.g., front running, painting the tape)

📊 5. Supervision of Investment Banking and Research (12%)

• Syndicate and underwriting rules
• Due diligence and registration process for new offerings
• Quiet periods and research analyst conflicts
• Disclosure of interest and compensation
• Rules around mergers, acquisitions, and private placements

📝 Exam Format Overview

• 📌 125 scored questions
• ⏱️ 3 hours and 45 minutes
• 🎯 Passing score: 70%
• 🧠 Questions are scenario-based, testing your ability to apply supervisory rules in real-world situations

📘 Want to lead with confidence?
Train with finra-exam-mastery.com and get access to our structured Series 24 course, complete with video lessons, case-based quizzes, and regulatory walkthroughs—all designed to help you pass on the first attempt.

🎯 From rep to principal—earn your seat at the top.