Series 86/87

DEFINITION of 'Series 86/87'

An exam administered by the Financial Industry Regulatory Authority (FINRA) and otherwise known as the Research Analyst Qualification Exam. Professionals who pass the exam can function as research analysts for FINRA-member broker/dealers. Research analysts are primarily responsible for producing the content in research reports, and their names will appear on the reports.

The exam is actually two-in-one. The Series 86 (100 questions) tests research analysis knowledge, while the Series 87 (50 questions) tests knowledge of industry rules and best practices. A total of four hours is given to complete the Series 86 and 90 minutes is provided for the Series 87; a score of 70% or better is required for passing.

BREAKING DOWN 'Series 86/87'

People who have already passed both Part I and Part II of the Chartered Financial Analyst Exam may request an exemption from the Series 86 portion only. For those without a CFA, the Series 7 is a prerequisite for the combined exam.

The exam requires a thorough knowledge of not only company analysis, but also industry analysis, management study and knowledge of broad supply and demand parameters for a given industry or sector. Financial metrics should be well-understood at this point, as well as earnings modeling methods and industry dynamics for the purposes of creating useful and accurate financial reports that will be used to educate and assist sales staff.

RELATED TERMS
  1. Series 24

    A securities license entitling the holder to supervise and manage ...
  2. Series 66

    An exam administered by the Financial Industry Regulatory Authority ...
  3. Series 42

    An exam offered by the Financial Industry Regulatory Authority ...
  4. Series 28

    An exam given by the Financial Industry Regulatory Authority ...
  5. Series 27

    A securities license entitling the holder to become a chief financial ...
  6. Series 7

    A general securities registered representative license administered ...
Related Articles
  1. Investing

    What is the Series 66?

    The Series 66 exam is one of two tests required to register as both a securities agent and an investment advisor.
  2. Financial Advisor

    CFA Vs. Series 7: Which is Easier

    Find out which is exam is easier: The Chartered Financial Analyst (CFA) exam, or the Series 7 securities exam for registered representatives.
  3. Professionals

    Prepare For Your CFA Exams

    Find out how to get yourself ready for these lengthy and often daunting exams.
  4. Managing Wealth

    Introduction To The Series 65 Exam

    The Series 65 is required in many states in order to be a fee-based advisor. Find out what it is and whether you need it.
  5. Professionals

    The Difference Between Series 63, 65 and 66

    After passing the first core examination, usually the FINRA Series 6 or Series 7, one hurdle remains. That’s the Series 63, 65 or 66.
  6. Investing

    The Series 79 Exam: What It Is And When You Need It

    If you're getting into the field of investment banking, you'll need to know all about the Series 79.
  7. Financial Advisor

    How Hard are the CFA Exams?

    Learn about the difficulty of the CFA exams with a description of the tests, some statistics on pass rates and suggestions that can help you pass the exams.
  8. Trading

    Becoming A Chartered Market Technician

    The CMT certification involves three tough exams. Find out what you need to do in order to pass.
  9. Investing

    How to Ace the CFA Level I Exam

    Prepare to ace the CFA Level 1 exam by studying systematically.
  10. Professionals

    Who Needs to Take the Series 65?

    Most states require individuals to pass the Series 65 exam in order to act as investment advisors.
RELATED FAQS
  1. What certification series does one need to be a bond broker?

    One major requirement before one can become a bond broker is to pass the General Securities Representative Exam, commonly ... Read Answer >>
  2. I have passed the Series 63 and FINRA Series 7, but would like to become licensed ...

    Becoming an investment adviser representative requires more examination than just taking the FINRA Series 63 exam. See what ... Read Answer >>
  3. Do I have to successfully complete the Series 7 exam before I can register for the ...

    There are no prerequisites to register for the Series 63 exam. However, once you have registered for the exam, you must schedule ... Read Answer >>
  4. What are the differences between the Series 6 exam and the Series 7 exam?

    Learn about the regulatory exams needed to become a limited or registered representative and the main differences between ... Read Answer >>
  5. How many people fail the series 63 exam every year?

    How many stock brokers failed the Series 63 exam before they passed successfully? Here is what you need to know before taking ... Read Answer >>
  6. For what reasons are electronics stocks commonly purchased by a value investor?

    Learn about the breakdown of subjects on the Series 6 while reviewing important aspects of the exam, including its content ... Read Answer >>
Hot Definitions
  1. Dove

    An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that ...
  2. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
  3. Front Running

    The unethical practice of a broker trading an equity based on information from the analyst department before his or her clients ...
  4. After-Hours Trading - AHT

    Trading after regular trading hours on the major exchanges. The increasing popularity of electronic communication networks ...
  5. Omnibus Account

    An account between two futures merchants (brokers). It involves the transaction of individual accounts which are combined ...
  6. Weighted Average Life - WAL

    The average number of years for which each dollar of unpaid principal on a loan or mortgage remains outstanding. Once calculated, ...
Trading Center