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