| Many investment brokers who aspire to operate their | | | | approved as a principal, you can supervise sales |
| own firm or become a supervisor at an NASD firm | | | | activity of the representatives who are working |
| will take the Series 24 Exam. This test is 150 | | | | underneath you. This allows you to make a |
| questions long and is in multiple choice format. A | | | | percentage of the reps commissions. |
| passing grade of 70% is needed to pass the exam. | | | | Responsibilities of Series 24 Principals |
| The test breakdowns into 5 categories: | | | | With the added license and income potential, comes |
| Investment Banking | | | | responsibility and possible liability. Principals must |
| This includes corporate underwriting, securities acts | | | | approve and sign off on all faxes and other electronic |
| of 1933 and 1934, along with NASD regulations and | | | | correspondence that their brokers are sending |
| banking rules. | | | | customers. Series 24 managers must also sign and |
| Trading Markets | | | | approve all new account forms. Series 24 persons |
| This section tests on trading market basics, NYSE | | | | are open to rules violations by their employees. Any |
| trading, OTC, customers confirmations and | | | | wrongdoing by a Series 7 broker who is under the |
| settlements. | | | | supervision of a Series 24 principal can result in |
| Customer Accounts | | | | severe penalties to the Principal, as well as the |
| This exam area will test the Series 24 candidate on | | | | broker. |
| new account form particulars, which includes individual, | | | | Start your own firm or branch office |
| joint, corporate and custodial accounts. Margin rules | | | | If you wish to open an office of an existing firm and |
| and account information is also covered in the | | | | have employees, you will need the Series 24. Running |
| customer account section. | | | | your own office is a dream of many brokers who |
| Sales Supervision | | | | have put their time in and are ready to become an |
| This area of the test will test on various NASD rules | | | | independent broker. The opportunities to earn the |
| of conduct and procedure. | | | | money and have more freedom are tempting. |
| Investment Companies and Retirement Planning | | | | However, there are responsibilities that come with |
| Mutual funds, IRA's and other investment company | | | | the territory. For most, the opportunity to run an |
| products are tested. | | | | office and earn from your Series 7 sales people |
| To take the Series 24, you must already hold a | | | | makes it worth it. |
| Series 7 license or a Series 62 license. Once you are | | | | Pass the Series 24 exam and earn your worth. |