Series 87 Exam

The Series 87 exam is the second part of a two-part exam and follows the Section 86 exam.  It's designed to test a candidate’s knowledge of the rules and regulations necessary to be a research analyst.  If you're planning a career in any kind of written or electronic communications that analyzes securities, this exam series is a must.

Series 87: Areas of Knowledge

The Series 86 and 87 exams are set up similarly but measure different areas of knowledge.  The Series 86 exam is composed of 100 multiple choice questions that measure your ability to analyze and value equity securities.  According to the FINRA website, this exam tests your skills in "Information and Data Collection, and Analysis, Modeling, and Valuation."

Series 87 covers regulatory administration and industry best practices.  If you routinely analyze equity securities or industry sectors, or are required to research and present information that affects investment decisions, you may need to take the Series 87 exam.  The NYSE Rule 344 and NASD Rule 1050 outline the job description of research analyst and serve as the authorities on who is required to qualify as a research analyst under the Series 87 exam.

Registering for the Series 87 Exam

Before taking the Series 87 exam, you must first pass the Series 7.  However, in some areas, the Series 17, 37, or 38 may be taken in place of the Series 7.  If you believe you may qualify for this exemption, contact a FINRA representative for more details.  In addition, if you've passed parts I and II of the CFA exam, you may be able to opt-out of the Series 86 exam.

Series 87 Exam Questions

The Series 87 exam features 50 questions pertaining to FINRA, the New York Stock Exchange regulations, and the Securities Acts of 1933 and 1934.  The exam asks these questions in ways related to research report preparation (32 questions) and information dissemination (18 questions).  The questions are multiple choice, and you'll have one hour and thirty minutes to complete the exam. 

You may not bring any outside resource materials to the exam; however, scratch paper and a basic calculator will be available if you need them.  If you fail the Series 87 exam, you must wait 30 days before retaking it.  You'll have three chances to pass the exam; otherwise you must wait 180 days before you can try again.  However, you won't have to retake the Series 86 exam if you passed it and vice versa. 

Updates for the Series 87 Exam

Be aware that questions asked on the Series 87 exam will pertain only to the current rules and regulations.  Old questions on rules no longer in use will be deleted, and new questions will be added on a regular basis.  You won't be expected to be familiar with old or rescinded rules that no longer impact your working environment.