NASD SERIES EXAMS

Anyone wishing to be an account representative or manager in the field of securities must be licensed. The organization that administers and maintains the licensing requirements is the NASD, which is just now going by the term FINRA. This organization is an SRO, a self-regulating organization which means they have internal controls and enforcement of their rules.

To become a stock broker, a professional trader, floor trader, a licensed clerk or a manager in securities all require taking and passing one or more NASD Series exams.

The most popular and well known is the Series 7 license. Passing the Series 7 exam licenses an individual to be a registered representative, or a stock broker. The next most popular is the Series 63, which is a much smaller version of Series 7. Series 63 is the registered representative test to qualify for your state.

There are a total of 39 NASD Series Exams, most of which are highly obscure and esoteric. Series 4 is for an individual who will manage a brokerage firms options group. Series 8 is a general manager of stock brokers. Series 55 is a smaller test specifically for those executing and trading securities, rather than making them eligible to do business with clients. Series 72 focuses on those who would trade in government securities, like T-bonds and T-bills.

The Series Exams qualify the individuals who work in the securities field, and is a qualification that happens without the intervention of the government. All 39 Series Exams are administered, registered and recorded by the NASD.