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Series 24 Exam
Series 24 - General Securities Principal
The test breakdowns into 5 categories:
Investment Banking Procedure
This includes corporate underwriting, securities acts of 1933 and 1934, along with NASD regulations and banking rules.
Trading Markets
This section tests on trading market basics, NYSE trading, OTC, customers confirmations and settlements.
Customer Account Rules and Procedure
This exam area will test the Series 24 candidate on new account form particulars, which includes individual, joint, corporate and custodial accounts. Margin rules and account information is also covered in the customer account section.
Broker Sales Supervision
This area of the test will test on various NASD rules of conduct and procedure.
Investment Companies and Retirement Planning
Mutual funds, IRA's and other investment company products are tested.
To take the Series 24, you must already hold a Series 7 license or a Series 62 license. Once you are approved as a principal, you can supervise sales activity of the representatives who are working underneath you. This allows you to make a percentage of the reps commissions.
1. In order to independently verify the identity of a corporation that wishes to open a brokerage account, which documentation is acceptable?
I Certified articles of incorporation
II Better Business Bureau membership certificate
III State-issued business license
IV State-issued driver’s license of each corporate officer
a. I and III
b. I and IV
c. II and III
d. II and IV
2. Which of the following would be handled by the NASD Uniform Practice Committee?
I Customer complaint to a member firm about excessive commissions
II Member firm complaint about broken trades by another member
III Customer complaint to a member firm about failure to deliver fully paid securities
IV Member firm complaint about failure to deliver fully paid securities by another member
a. I and II
b. III and IV
c. I and III
d. II and IV
3. Under the Securities and Exchange Act of 1934, changes in ownership of corporate stock by insiders must be reported to the SEC within:
a. 2 business days of the event
b. 2 business days of quarter end
c. 5 business days of event
d. 5 business days of quarter end
4. A customer is long 500 shares of ABC stock in a cash account and is short 300 shares of ABC stock in a margin account at the same firm. The customer wishes to sell the 500 shares in the cash account. To do this, the order ticket must be marked:
a. Sell 500 ABC Long
b. Sell 500 ABC Short
c. Sell 300 ABC Long/Sell 200 ABC Short
d. Sell 200 ABC Long/Sell 300 ABC Short
5. A broker-dealer is part of a syndicate handling a secondary common stock offering for an NNM listed issuer. During the period when the issue is in registration, the broker-dealer received an unsolicited order to buy that issuer’s stock. Which statement is true? The broker-dealer:
a. cannot accept the order because it is in the syndicate
b. can accept the order but cannot be compensated for executing the transaction
c. can accept the order and receive normal compensation for executing the transaction
d. can accept the order, but must interposition another firm that is not in the syndicate to execute the order
Study for your test at American Investment Training - Updated and professional Books and CD's for the Series 24 Exam. AIT offers securities training home study courses.
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