Series 86/87

AAA

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.

RELATED TERMS
  1. Broker-Dealer

    A person or firm in the business of buying and selling securities, ...
  2. Sell Side

    The part of the financial industry involved with the creation, ...
  3. Research Note

    A statement from a brokerage firm or other investment advisory ...
  4. CFA Institute

    Formerly known as the Association for Investment Management and ...
  5. Chartered Financial Analyst - CFA

    A professional designation given by the CFA Institute (formerly ...
  6. Series 7

    A general securities registered representative license administered ...
RELATED FAQS
  1. How can I use a regression to see the correlation between prices and interest rates?

    In statistics, regression analysis is a widely used technique to uncover relationships among variables and determine whether ... Read Full Answer >>
  2. What are the benefits of hiring a Chartered Financial Analyst (CFA) to be my financial ...

    A Chartered Financial Analyst (CFA) has successfully passed rigorous coursework in the fields of economics, financial analysis, ... Read Full Answer >>
  3. How do I become a Chartered Financial Analyst (CFA)?

    According to the CFA Institute, a person who holds a CFA charter is not a chartered financial analyst. The CFA Institute ... Read Full Answer >>
  4. How do I calculate a modified duration using Matlab?

    The modified duration gauges the sensitivity of the fixed income securities to changes in interest rates. To calculate the ... Read Full Answer >>
  5. How do I calculate the rule of 72 using Matlab?

    In finance, the rule of 72 is a useful shortcut to assess how long it takes an investment to double given its annual growth ... Read Full Answer >>
  6. How do I calculate the standard error using Matlab?

    In statistics, the standard error is the standard deviation of the sampling statistical measure, usually the sample mean. ... Read Full Answer >>
Related Articles
  1. Insurance

    What You Need To Know About Financial Analysts

    Thinking about relying on analyst recommendations for your next trade? We'll show you what to watch out for.
  2. Personal Finance

    A Guide To Financial Designations

    Find out which certifications can bring you the greatest career returns.
  3. Professionals

    So, You Want To Earn Your CFA?

    Here are some pros and cons to consider before you take the CFA charter plunge.
  4. Professionals

    Becoming A Chartered Market Technician

    The CMT certification involves three tough exams. Find out what you need to do in order to pass.
  5. Options & Futures

    Find Your Niche In The Financial Industry

    In this article, we'll give you the tools you need to discover the financial career that fits you the best.
  6. Professionals

    An Introduction To The CFA Designation

    The CFA designation is seen as the key certification for investment professionals. Find out what the CFA signifies for candidates and investors.
  7. Personal Finance

    Testing 3 Types Of Analysts

    Different clients require different research reports. Which type of analyst do you need?
  8. Brokers

    A Day in the Life of a Financial Advisor

    Financial advisors do a lot more than just manage portfolios, including prospecting, marketing, client servicing, compliance and administration.
  9. Investing News

    The Financial Singularity Will Destroy Your Return

    Given the current and future growth of financial technology, many believe algorithms will soon define what drives market outcomes. With a wealth of big data, algorithms would be able to create ...
  10. Professionals

    SEC to Advisors: Implement Cybersecurity Plans

    Advisors need to take heed of new SEC guidelines to beef up cybersecurity. Here's what they look like and what some firms are doing.

You May Also Like

Hot Definitions
  1. OsMA

    An abbreviation for Oscillator - Moving Average. OsMA is used in technical analysis to represent the variance between an ...
  2. Investopedia

    One of the best-known sources of financial information on the internet. Investopedia is a resource for investors, consumers ...
  3. Unfair Claims Practice

    The improper avoidance of a claim by an insurer or an attempt to reduce the size of the claim. By engaging in unfair claims ...
  4. Killer Bees

    An individual or firm that helps a company fend off a takeover attempt. A killer bee uses defensive strategies to keep an ...
  5. Sin Tax

    A state-sponsored tax that is added to products or services that are seen as vices, such as alcohol, tobacco and gambling. ...
  6. Grandfathered Activities

    Nonbank activities, some of which would normally not be permissible for bank holding companies and foreign banks in the United ...
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!