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.

Investopedia explains '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.



comments powered by Disqus
Hot Definitions
  1. Federal Reserve Note

    The most accurate term used to describe the paper currency (dollar bills) circulated in the United States. These Federal Reserve Notes are printed by the U.S. Treasury at the instruction of the Federal Reserve member banks, who also act as the clearinghouse for local banks that need to increase or reduce their supply of cash on hand.
  2. Benchmark Bond

    A bond that provides a standard against which the performance of other bonds can be measured. Government bonds are almost always used as benchmark bonds. Also referred to as "benchmark issue" or "bellwether issue".
  3. Market Capitalization

    The total dollar market value of all of a company's outstanding shares. Market capitalization is calculated by multiplying a company's shares outstanding by the current market price of one share. The investment community uses this figure to determine a company's size, as opposed to sales or total asset figures.
  4. Oil Reserves

    An estimate of the amount of crude oil located in a particular economic region. Oil reserves must have the potential of being extracted under current technological constraints. For example, if oil pools are located at unattainable depths, they would not be considered part of the nation's reserves.
  5. Joint Venture - JV

    A business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task. This task can be a new project or any other business activity. In a joint venture (JV), each of the participants is responsible for profits, losses and costs associated with it.
  6. Aggregate Risk

    The exposure of a bank, financial institution, or any type of major investor to foreign exchange contracts - both spot and forward - from a single counterparty or client. Aggregate risk in forex may also be defined as the total exposure of an entity to changes or fluctuations in currency rates.
Trading Center