The Series 51 exam is required for management positions in companies trading bonds, debt instruments, or securities in the US. It covers mutual funds, supervision, fair practice rules, underwriting, disclosure rules, and market terminology. Passing the Series 24 and Series 26 exams is required before taking Series 51. The Municipal Securities Regulation Board (MSRB) is responsible for ensuring brokerage houses and firms have the necessary education and training when selling securities products. MSRB classifies municipal securities professionals into three groups: limited principals, securities representatives, and securities principals.
Series 51 is an exam that individuals must take if they want to achieve a management position in a company that trades bonds, debt instruments, or securities. The exam is most popular in the United States, where the Financial Industry Regulatory Authority (FINRA) is an independent agency responsible for regulating American securities companies. Although individuals can take the Series 51 exam through FINRA, the Municipal Securities Regulation Board (MSRB) is the agency responsible for ensuring that brokerage houses and firms have the necessary education and training when selling securities products. investment in the open market.
The MSRB is an institution established by the United States Congress for the purpose of promoting a fair and efficient securities market within the country. Congress heavily regulates the stock market to ensure that unnoticed irregularities do not occur, especially in light of several major scandals that have occurred in recent history. Many of these problems are Ponzi schemes, where investors take money from various people and companies.
Before taking Series 51 and earning this certification, individuals must pass the Series 24 and Series 26 exams. These exams cover in some detail information related to the sale of general securities and the use of variable contracts within a company. investment, respectively. These two tests provide a foundation for the technical nature of selling debt and equity securities on the open market to individuals and businesses. FINRA is responsible for issuing these exams and scoring them.
The Series 51 exam is a detailed test consisting of 60 questions, with individuals assigned two hours to complete the exam. The exam is in a multiple-choice format and requires individuals to achieve a minimum passing score of 70 percent. Content will cover mutual fund characteristics, supervision of sales staff, fair practice rules, underwriting, disclosure rules, and market terminology. While study time is different for each individual, a common guideline is two hours a day for two weeks. The MSRB provides a study outline, although more detailed materials are also needed to study for the exam.
The MSRB classifies the municipal securities professional into three groups: limited principals, securities representatives, and securities principals. Limited directors only manage or oversee transactions related to items such as a 529 college savings plan, securities representatives focus on selling or trading investments, and securities directors may manage an entire brokerage firm that is dedicated to the sale of securities and investments. The Series 51 exam is a requirement to obtain management positions for a principal of securities.
Smart Asset.
Protect your devices with Threat Protection by NordVPN
