Equity Securities - Introduction

Introduction

The series 62 exam is written and administered by FINRA. The exam is often taken by students who do not want to undertake the challenges of the series 7. However, the series 62 exam should not be taken lightly, it is not an easy test. It is recommended that candidates spend at least 70 hours preparing for the exam . The series 62 material has been provided by The Securities Institute to help Investopedia visitors prepare for the exam. In order to successfully complete the exam it is recommended that you read the following material in addition to reading a full textbook and doing as many practice exams as you can. This first chapter will build the foundation upon which the rest of this text is built. A thorough understanding of equity securities will be necessary in order to successfully complete the Series 62 exam. Equity securities are divided into two types, common and preferred stock. We will examine the features of common stock and preferred stock, as well as the benefits and risks associated with their ownership. But first we must define exactly what meets the definition of a security.

What Is A Security?

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