Series 62

What Is the Series 62 Exam?

The Series 62 exam, otherwise called the Corporate Securities Qualification Examination, was an examination administered by the Financial Industry Regulatory Authority (FINRA). Prior to its termination by FINRA, breezing through the Series 62 exam was a requirement for the individuals who wish to become professional traders of corporate securities, like stocks and bonds.

How the Series 62 Exam Works

The purpose of the Series 62 exam was to safeguard the public by guaranteeing that new professionals satisfy a required guideline of professional information and skill. In particular, the exam was centered around the jobs and obligations engaged with selling corporate securities. Albeit the most notable types of corporate securities are stocks and bonds, they may likewise incorporate other security types, for example, warrants, asset-backed securities (ABSs), closed-end funds, and exchange-traded funds (ETFs).

The Series 62 was perhaps of the most common certification got by financial professionals. Its broad scope made it significant for different positions. Up-and-comers would frequently take the Series 62 alongside the Series 6 exam, which permits effective contender to trade securities like open-end mutual funds, unit investment trusts (UITs), and insurance products, for example, variable annuities.

Today, professionals wishing to trade corporate securities must take alternative exams, for example, the Series 7 examination. The Series 7, referred to officially as the General Securities Representative Qualification Examination, covers a broad scope of securities, including the types of corporate securities talked about above.

Real World Example of the Series 62 Exam

Prior to its end, the Series 62 exam comprised of 115 numerous decision questions taken north of 150 minutes. Competitors needed to get a score of something like 70% to pass, and must be sponsored by a registered broker-dealer firm to compose the test.

The Series 62 exam was structured in four sections. In the first and second sections, its inquiries centered around the different types of corporate securities traded today, along with the markets wherein these securities trade. This section included conversations of asset-backed securities, corporate stocks and bonds, securities issued by the U.S. government institutions and agencies, and others. In the third and fourth sections, the inquiries zeroed in on the methods used to assess these securities, as well as the best practices used to handle customer accounts and guarantee compliance with securities regulations.

Features

• The Series 62 has since been supplanted by other FINRA-controlled exams, like the Series 7.
• It is an essential for those wishing to trade corporate securities.
• The Series 62 was an important exam for financial professionals.