- Multiple-Choice Item
- A single test question offering several answer options from which the candidate selects the best one; the Series 24 exam is built entirely from these. The exam contains 150 such questions.
- Passing Score
- The minimum percentage of questions a candidate must answer correctly to pass. For the Series 24, the passing score is 70%.
- Exam Session Time Limit
- The total amount of time a candidate is allotted to complete all questions in a single sitting. For the Series 24, the time limit is 225 minutes (3 hours and 45 minutes).
- Exam Enrollment Fee
- The cost charged to register for and sit the exam. The Series 24 fee is $235.
- Broker-Dealer
- A firm or person in the business of buying and selling securities either for customers (broker) or for its own account (dealer). Series 24 principals supervise the operations of such firms.
- Underwriting
- The process by which a broker-dealer helps an issuer bring new securities to market, often committing to buy the shares and resell them to the public. Supervising this activity is a core Series 24 responsibility.
- Market Maker
- A dealer that stands ready to buy and sell a particular security by continuously quoting both a bid and an ask price, providing liquidity to the market. Series 24 principals oversee market-making activity.
- Registered Representative
- An individual licensed to transact securities business with the public on behalf of a broker-dealer. A General Securities Principal is responsible for supervising the conduct of these representatives.
- Supervisory System
- The framework of written procedures, designated principals, and controls a firm must maintain to reasonably ensure compliance with securities laws and rules. Establishing and enforcing this system is central to the principal role tested by the Series 24.
- Net Capital
- A measure of a broker-dealer's liquid assets in excess of its liabilities, used by regulators to ensure the firm can meet its obligations to customers. Understanding net capital requirements is part of the financial-responsibility knowledge tested on the Series 24.
- FINRA
- The Financial Industry Regulatory Authority, the self-regulatory organization that writes and enforces rules for broker-dealers and administers qualification exams such as the Series 24.
- General Securities Principal (Series 24)
- A FINRA registration category that qualifies an individual to supervise and manage the securities-related activities of a broker-dealer, including underwriting, trading, and market-making. It is the credential earned by passing the Series 24 exam.