| Financial and operations positions at an NASD | | | | |
| firm usually require the Series 27 license. | | | | This section of the exam will test you on |
| There are several areas and departments of a | | | | notifications, delivery of securities, and |
| brokerage firm. People looking to become | | | | activities in the accounts of the firm's |
| brokers will usually need to take the series | | | | customers. |
| 6 or series 7. Supervisors of brokers or | | | | |
| sales people may need the series 24. | | | | Margin Accounts |
| | | | |
| The Series 27 is an exam that covers topics | | | | A fairly large section of the Series 27 deals |
| consistent with working as a compliance | | | | with lending of money and securities in |
| officer or in another financial operations | | | | margin accounts. The margin section will |
| department. The exam is 145 questions and | | | | cover market values, equity, debit balance, |
| multiple choice. Like the other NASD tests, | | | | SMA, hypothecation and the markets effect on |
| the Series 27 can be taken any day of the | | | | margin accounts. There is some math in this |
| week at Prometric testing centers. You must | | | | section. You need to know basic calculation |
| register through your brokerage firm prior to | | | | and the rules associated with margin |
| arranging a test date. Once you are | | | | accounts. Federal Reserve Board and NYSE |
| registered, a 120 day testing window is | | | | margin rules are covered in this section. |
| opened. You can take the Series 27 at any | | | | |
| time during that 120 day period. If you fail | | | | MSRB |
| the exam, you must wait 30 days before | | | | |
| sitting for the test again. If you fail the | | | | The organization that oversees the municipal |
| Series 27 three times, you must wait 6 | | | | industry is known as the MSRB - Municipal |
| months. | | | | Securities Rulemaking Board. Brokerage firms |
| | | | that sell municipal securities must abide by |
| Most of the exam covers rules, regulations | | | | the MSRB. Students studying the Series 27 |
| and operations of an NASD firm. | | | | must be familiar with the rules and |
| | | | regulation that are covered by the MSRB. |
| Test Breakdown | | | | |
| | | | Other areas include rules and securities |
| The Series 27 covers several main topic | | | | acts. |
| areas, they include: | | | | |
| | | | Series 27 Career |
| Balance sheet and net capital. | | | | |
| | | | If you are looking to break into the |
| This section will cover computing a firm's | | | | financial operations area of NASD firms, the |
| net capital, understanding the rules and | | | | Series 27 can be a big plus. If you are in |
| minimums of keeping minimum net capital, and | | | | between jobs or firms and do not currently |
| understanding the balance sheet. It will also | | | | hold the Series 27 license, you might want to |
| test the candidate on the effects of loans | | | | consider studying for it and begin adding |
| and securities on net capital and its effect | | | | your process on your resume. Doing this can |
| on the balance sheet. This is the area that | | | | give you an advantage over other candidates |
| covers the most math on the test. | | | | not familiar with the exam. These are salary |
| | | | positions, which is the good part. Most jobs |
| Reporting | | | | at brokerage firms (that are non-support |
| | | | jobs) are commission - or largely based on |
| This area of the Series 27 includes purchases | | | | commission. The bad part is that firms do not |
| and sales of securities, transfer of | | | | hire groups of people for their compliance |
| securities, customer settlements and | | | | department. You need to keep a look-out for |
| confirmations, and other items that require | | | | these openings. Most firms only need one |
| record keeping and reporting. | | | | compliance officer. |
| | | | |
| Customer Protection and Notification | | | | Good luck in your career! |