Series 24 - General Securities Principal Exam (GP)

The Series 24 exam—the General Securities Principal Qualification Examination (GP)—assesses the competency of an entry-level general securities principal candidate to perform his or her job as a general securities principal.

The exam measures the degree to which each candidate possesses the knowledge needed to perform the critical functions of a general securities principal, including the rules and statutory provisions applicable to the supervisory management of a general securities broker-dealer.

The Series 24 consists of 150 scored questions and an additional 10 unscored pretest questions. Candidates are given three hours and 45 minutes to complete the exam. The passing score is 70 percent.

Please see NASD Rule 1022(a) General Securities Principal for more information.

Content Outline


The Series 24 - Content Outline provides a comprehensive guide to the range of topics covered on the exam, as well as the depth of knowledge required. It includes sample questions to acquaint candidates with the types of multiple-choice questions on the exam.

The outline is comprised of the five main job functions of a general securities principal:

  • Function 1 – Supervision of registration of broker-dealer and personnel management activities
  • Function 2 – Supervision of general broker-dealer activities
  • Function 3 – Supervision of retail and institutional customer-related activities
  • Function 4 – Supervision of trading and market making activities
  • Function 5 – Supervision of investment banking and research

Download: Series 24 - Content Outline

Eligibility


The Series 24 has a prerequisite exam requirement. Candidates must pass one of the following exams to hold the registration:

  • Series 7
  • Series 17
  • Series 37
  • Series 38
  • Series 57 (Candidates will receive the Trader Principal (TP) designation instead of the GP upon passing the S24)
  • Series 62
  • Series 79
  • Series 82

Please see Register a New Candidate for more information on the registration process.

Permitted Activities


A general securities principal’s supervisory responsibilities are governed by the limitations of his or her representative level registrations. Covered supervisory activities include regulatory compliance over:

  • Trading
  • Market making
  • Underwriting
  • Advertising

Taking the Exam


The table below lists the allocation of exam questions for each main job function of a general securities principal:

Section Number of Questions
Section 1 – Supervision of Registration of Broker-Dealer and Personnel Management Activities 9
Section 2 – Supervision of General Broker-Dealer Activities 45
Section 3 – Supervision of Retail and Institutional Customer-Related Activities 32
Section 4 – Supervision of Trading and Market Making Activities 32
Section 5 – Supervision of Investment Banking and Research 32
TOTAL 150

See On the Day of Your Exam for more information.

Key Questions


1. What is the difference between the General Securities Sales Supervisor Exam (Series 9/10) and the General Securities Principal Exam (Series 24)?
The General Securities Sales Supervisor Examination (Series 9/10) is a limited principal examination. It qualifies an individual to supervise sales activities of a broker/dealer. It satisfies the testing requirements of the American Stock Exchange LLC, the Chicago Board Options Exchange Inc., the Chicago Stock Exchange, the Municipal Securities Rulemaking Board, FINRA, the Pacific Exchange, Inc., and the Philadelphia Stock Exchange.  The Series 9/10 qualifies the branch manager to supervise sales activities in corporate securities (equity and debt), investment company products and variable contracts, municipal securities, options, government securities and direct participation programs The General Securities Sales Supervisor Exam does not allow the sales supervisor/branch manager to supervise other areas of a member's securities business, such as underwriting, trading, advertising, or overall firm compliance with financial responsibilities.

The Series 24, on the other hand, qualifies a candidate as a general securities principal for FINRA only. By passing the Series 24, the candidate can supervise all areas of the member's investment banking and securities business, such as underwriting, trading and market making, advertising, or overall compliance with financial responsibilities.  While the scope of the general securities principal's supervisory authority is broader than the Series 9/10,  the Series 24 is limited in the products that it covers.  The general securities principal qualification does not cover municipal securities or options.

[NASD Membership and Registration Rules 1022(g) and 1022(a)-Limited Principal General Securities Sales Supervisor and General Securities Principal]

Using Reference Materials


The test administrator will provide whiteboard/dry erase marker and basic electronic calculators to the candidates, which must be returned to the test center administrator at the end of the testing session. Some test questions involve calculations. Only the provided calculators may be used during the examination.

The examination may contain questions that require the use of exhibits (e.g., charts, graphs, tables). If so, the questions will indicate when to refer to an exhibit.

Candidates are not permitted to bring any reference materials to testing sessions. Severe penalties are imposed on candidates who cheat or attempt to cheat on FINRA administered examinations.

To learn more about logistics and protocols for your exam day, please see On The Day of Your Exam.