What is the Series 62
The Series 62 is a certification providing registered representatives with the authority to transact corporate equities and corporate debt securities for clients. Series 62 representatives can trade some of the most commonly transacted individual securities including stocks, bonds, closed-end funds and exchange-traded funds.
BREAKING DOWN Series 62
The Series 62 is one of the most common certifications obtained by registered representatives of a financial organization. It is broad in scope allowing representatives to trade in equities, corporate bonds, preferred stocks and some asset-backed securities. It is often accompanied by the Series 6, which allows certified representatives to trade open-end mutual funds, unit investment trusts (UITs), variable annuities, variable life insurance and some municipal fund securities.
The Series 62 exam is maintained by the Financial Industry Regulatory Authority (FINRA) and administered at test centers across the country. It is also known as the Corporate Securities Representative Qualification Examination.
It tests an individual's knowledge of corporate equity and bond markets, security analysis and characteristics, industry regulations and the handling of customer accounts. With the Series 62 certification, registered representatives can trade the following:
- Corporate securities (stocks and bonds)
- Rights Warrants
- Closed-end funds
- Money-market funds
- Repos and certificates of accrual on corporate securities
- Real estate investment trusts (REITs)
- Asset-backed securities
- Mortgage-backed securities
- Exchange-traded funds
The test consists of 115 multiple choice questions taken over 150 minutes. A score of 70% or better is required for passing. The Series 62 exam has no prerequisites. Candidates must be sponsored by a registered broker-dealer. The cost of the exam is $95.
The Series 62 exam includes four sections of content.
Section One — Types and Characteristics of Securities and Investments
Section one content includes equity securities, corporate debt securities, asset-backed securities, investment companies, U.S. government and agency securities, derivatives and structured products. Section one includes 25 questions.
Section Two — The Market for Corporate Securities
Content in section two includes issuing corporate securities, trading corporate securities, details on the Securities Exchange Act of 1934, which governs the secondary market, and FINRA/NASD conduct rules. This section has 40 questions.
Section Three — Evaluation of Securities and Investments
Section three covers securities analysis, the economy, investment planning and investor suitability, and tax consequences of securities transactions. Section three includes 14 questions.
Section Four — Handling Customer Accounts and Securities Industry Regulations
Section four discusses client accounts, account documentation, transactions in accounts, customer delivery/payment, extensions of credit in the securities industry, general regulations of brokers and dealers, FINRA/NASD regulations and the Securities Investor Protection Act. Section four includes 36 questions.