The License is for Principals of an NASD (FINRA) firm, for the purpose of supervising representative and branch office activities. Opportunities with this license include: Supervising a broker dealer branch office or running your own broker dealer office. AIT has programs for license training and consultation on becoming an independent broker.

The Series 24 exam is comprised of 150 multiple choice test questions. The time to complete is 210 minutes, and 70% is the grade needed to pass. Exam registration is done through the NASD after preparing for the test. The Series 24 is administered daily at test centers throughout the country.

A full test course is offered through American Investment Training. An Online 24 Course is available 24/7 for students looking to pass the exam quickly through the web.

Test topice include: New issue underwriting, sales supervision, trading markets, and NASD Regulations.

Sample Test Questions: (5)

1. When an order is received from a customer, a written record of the order must be prepared:

a. prior to the time the order is given to the trading department
b. prior to the time that execution is confirmed by the trading desk
c. prior to the time the confirmation is mailed to the customer
d. prior to the time the transaction settles

2. An institutional customer says the following to his broker: “Buy 100,000 shares of ABC stock whenever you think the time is best. This order is good unless I call you to cancel.” Which statement is true about the handling of this order?

a. An executed power of attorney must be obtained from the customer prior to accepting the order
b. The order must be executed by the close of the market on that trading day
c. The order can be accepted as given, and can be executed at the discretion of the brokerage firm at any time or day
d. This order can only be accepted if the customer places it via fax or e-mail

3. All of the following communications with customers are subject to the NASD Interpretation on Advertising and Sales Literature EXCEPT:

a. a letter of an individual nature sent to a customer by a registered representative
b. independently prepared reprints of magazine articles mailed to customers
c. videotape presentations made to interested parties
d. form letters mailed to 25 or more prospective customers

4. Under the requirements of the NASD Committee on Corporate Financing, all of the following information must be filed regarding prior private placements of the issuer being underwritten EXCEPT:

a. a list of all purchasers of a private placement of that issuer occurring within the 180 days preceding the offering
b. the relationship, if any, of the purchasers of a private placement of that issuer to anyone in the stream of distribution occurring within the past 180 days
c. details of all private placement purchases, including dates and amounts, occurring within the past 180 days
d. details of all resales of private placement securities occurring within the past 180 days

5.Mutual fund performance charts must:

I show a minimum illustration period of ten years, or the life of the fund, if shorter
II show the breakdown of “Total Return” into capital and income components
III reflect the actual sales charges and expenses that the intended reader would incur
IV compare the fund’s performance to a relevant market index for the period presented

a. I and II only
b. III and IV only
c. I, II, III
d. I, II, III, IV

The Series 24 test covers topics including:

• Supervision of Investment Banking
• Trading Market Supervision
• Sales Supervision
• Primary and Secondary Markets
• Supervising Customer Accounts and orders
• Investment Companies

Prerequisite License: Series 7
Questions on Exam : 150
Time to Complete : 210 Minutes
Format : Multiple Choice
Passing Grade: 70%
Availability: Test is given daily (Mon-Sat)
Where: Prometric (Sylvan) Centers
Home Study Time:Generally 4 weeks (1-2hrs daily)


Study Material

The Series 24 course training offered by American Investment Training includes: Series 24 Books and CD Test Programs. Course material includes hundreds of chapter and final exam test questions to prepare the student for a passing grade, the first time.

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