Series 24 - General Securities Principal Exam

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.

For more information, refer to FINRA Rule 1220(a)(2).

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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


Candidates must be associated with and sponsored by a FINRA member firm or other applicable self-regulatory organization (SRO) member firm to be eligible to take FINRA qualifications exams. For more information on eligibility requirements, refer to FINRA Rule 1210.

The Series 24 has corequisite exam requirements. Candidates must pass the Securities Industry Essentials (SIE) exam and a representative-level qualification exam to hold the appropriate principal registration. In addition, candidates are able to qualify for the Research Principal (RP) registration by passing the Supervisory Analyst (Series 16) and the General Securities Principal (Series 24) exams.

Upon passing the Series 24, depending on their corequisite qualification(s), candidates will receive the following principal registration(s).

Corequisite Exam(s) Principal Registrations
SIE + Series 7 General Securities Principal (GP)
SIE + Series 57 Trader Principal (TP)
SIE + Series 79 Investment Banking Principal (BP)
SIE + Series 82 Private Securities Offerings Principal (PO)
SIE + Series 86/87 Research Principal (RP)
Series 16 Research Principal (RP)

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

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 NYSE, the Cboe, the MSRB, FINRA and Nasdaq. 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.

[FINRA Registration Rules 1220(a)(2) and 1220(a)(10)]