What is a 'Series 11'

The Series 11 is a securities license that allows holders to provide current securities quotations and accept unsolicited customer orders for execution. Also known as the Assistant Representative - Order Processing Examination (AR), the Series 11 is administered by the Financial Industry Regulatory Authority (FINRA). It applies to brokerage sales assistants who take and enter unsolicited client orders from broker-dealer customers for execution. It does not permit them to accept orders for municipal securities or direct participation programs, however. There is no prerequisite for taking the exam, though a candidate must first be registered with FINRA.

Breaking Down 'Series 11'

The Series 11 covers persons associated with a FINRA member firm who accept telephone or other communications from the public for the purposes of providing current securities quotations and accepting unsolicited customer securities ordersĀ (with the notable exception of the aforementioned municipal securities and direct participation programs) for submission to the normal order execution operations of the member. According to FINRA, an Assistant Representative - Order Processing registrant "may conduct the above-mentioned tasks only on the premises of the member, must be under the direct supervision of an appropriately registered principal, and may not receive extra direct or indirect compensation for the number or size of transactions effected."

Series 11 Prohibited Activities

Assistant representative-order processing registrants are prohibited from conducting the following activities:

  • Dually registering as a representative or principal
  • Rendering investment advice or opinion
  • Making recommendations
  • Making transactions in securities markets on behalf of the firm
  • Accepting or opening new accounts
  • Prequalifying potential customers
  • Effecting transactions in municipal securities
  • Effecting transactions in direct participation programs

Series 11 Structure and Content

The Series 11 Exam consists of 50 scored multiple-choice questions. Candidates are allocated 60 minutes to complete the exam, which costs $80. A passing score is 70%. There is no penalty for guessing so exam takers should endeavor to answer every question. The test is organized into the following sections:

  • Section 1: Types of Securities (10 questions)
  • Section 2: Customer Accounts and Orders (24 questions)
  • Section 3: Securities Markets (5 questions)
  • Section 4: Securities Industry Regulations (11 questions)

After the exam is completed, candidates will receive a section by section informational breakdown of their performance, as well as their overall score. Candidates are not allowed to use any reference material during the exam, as it is a closed-book test. The exam's questions may change based on new regulations or amendments to existing regulations, so candidates should keep abreast of potential developments. For more, visit FINRA's Series 11 Exam Content Outline.

RELATED TERMS
  1. Series 66

    An exam administered by the Financial Industry Regulatory Authority ...
  2. Series 55

    The Series 55 is an exam and license that entitles the holder ...
  3. Series 27

    The Series 27 is a securities license entitling the holder to ...
  4. Series 63

    A securities license entitling the holder to solicit orders for ...
  5. Series 4

    The Series 4 is an exam and securities license entitling the ...
  6. Series 51

    An exam offered by the Financial Industry Regulatory Authority ...
Related Articles
  1. Personal Finance

    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.
  2. Financial Advisor

    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.
  3. Financial Advisor

    Tips For Passing The Series 6 Exam

    Find out what you can do during the test to make sure you get a passing score.
  4. Financial Advisor

    Sell-Side Analysts Need Series 86/87 Exams

    Though these tests are not particularly difficult or comprehensive, passing them is mandatory to work as a sell-side analyst.
  5. Financial Advisor

    Breaking Down Financial Securities Licenses

    Find out which exam you need to begin your career as an investment professional.
  6. Financial Advisor

    Series 6 Exam Prep: What Is A Security?

    Before you take the series 6, you need to understand what a security is as defined by the exam.
  7. Personal Finance

    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.
  8. Financial Advisor

    Succeeding At The Series 63 Exam

    Your career as a securities agent begins with this test. We'll show you how to score high.
  9. Personal Finance

    What to Expect on the CFA Level I Exam

    The Level I exam for the Chartered Financial Analyst designation can be challenging. Here's what to expect.
  10. Trading

    Broker or Trader: Which Career is Right For You?

    A day in the life of a broker or Wall Street trader is an exciting and varied one. Learn more about these two financial professions.
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. What does passing the Series 6 enable me to do?

    Learn more about the Series 6, what the examination and license are and what the license enables an individual to buy, sell ... Read Answer >>
Hot Definitions
  1. Initial Public Offering - IPO

    The first sale of stock by a private company to the public. IPOs are often issued by companies seeking the capital to expand ...
  2. Cost of Goods Sold - COGS

    Cost of goods sold (COGS) is the direct costs attributable to the production of the goods sold in a company.
  3. Profit and Loss Statement (P&L)

    A financial statement that summarizes the revenues, costs and expenses incurred during a specified period of time, usually ...
  4. Monte Carlo Simulation

    Monte Carlo simulations are used to model the probability of different outcomes in a process that cannot easily be predicted ...
  5. Price Elasticity of Demand

    Price elasticity of demand is a measure of the change in the quantity demanded or purchased of a product in relation to its ...
  6. Sharpe Ratio

    The Sharpe ratio is the average return earned in excess of the risk-free rate per unit of volatility or total risk.
Trading Center