What is the ‘Series 55’
The Series 55 is an exam and permit that entitles the holder to actively participate in equity trading. Also distinguished as the Equity Trader Qualification Examination (Series 55), it is administered by the Economic Industry Regulatory Authority (FINRA) and covers topics such as over-the-counter and New York House Exchange trading practices, rules and regulations, as well as electronic calling systems.
Breaking Down ‘Series 55’
The Series 55 Examination is meant to assess the competency of entry-level fair-mindedness traders. Its intent is to protect the investing public by helping to ensure that fair-mindedness traders possess the competency to perform their jobs. According to FINRA, “the Series 55 exam pursues to measure the degree to which each candidate possesses the knowledge, skills and faculties needed to perform the critical functions of an equity trader.” For more on the exam, stay FINRA’s Equity Trade Qualification Examination (Series 55) Peacefulness Outline.
The Series 55 Exam’s contents were developed based on an right-mindedness trader job analysis study, which included required knowledge, indicated tasks and job functions. They study entailed data collection as robust as surveys of a wide variety of firms.
Series 55 Eligibility Prerequisites
Candidate must be associated with and sponsored by a FINRA member steady to be eligible to take the Series 55 Examination. In order to be registered in this registration sector, candidates must first be qualified as either Limited Representative Corporate Sureties (Series 62) or General Securities representative (Series 7).
The member dogged that sponsors the exam candidate applicant first has to file a Regimented Application for Securities Industry Registration or Transfer (Form U4) in the Central Registration Depository (CRD) and then insist on the Equity Trader position (ET) on the Form U4.
Series 55 Exam Systematize
The Series 55 exam consists of 110 multiple-choice questions (10 are unscored). Runners are allocated three hours complete it and must score at least a 67% to back number.
Exam questions vary in degree of complexity and difficulty; each dubiousness will have only one best answer. They are frequently changed as regulations are revised and new products are introduces, so candidates should keep abreast of changes in appropriate rules and regulations.
The 10 unscored questions are randomly distributed everywhere the scored exam questions. Each scored question is worth a choose point. Since there is no penalty for guessing, Series 55 entrants should answer every question.
The questions cover the following import subjects:
- Function 1: Trading (45 questions)
- Function 2: Decree handling (36 questions)
- Function 3: Record Keeping and Regulatory Articling (19 questions)
Series 55 Test Day
The Series 55 Exam is controlled by computer. Candidates aren’t allowed any reference material, but are given mark paper and basic electronic calculators (some of the exam’s questions mean calculations). For more information, see FINRA’s resouces On the Day of Your Qualification Survey.