This free Series 24 study guideis the core of your Series 24 study materials — it walks through every topic on FINRA’s General Securities Principal exam, organized into the same five job functions FINRA uses to build the test.[2]
And it’s interactive, not a wall of text: every function has built-in checkpoint quizzes, worked supervisory scenarios, and flashcards, so you learn by doing — not just reading.
Read it function by function, test yourself at each checkpoint, then round out your free Series 24 study resources with our practice test and flashcards.
Series 24 Exam Snapshot
The Series 24 is a principal-level FINRA qualification — it licenses you to supervisea broker-dealer’s business, not to sell. Two eligibility points first: the requires the SIE as a co-requisite and a representative license (Series 7, 57, 62, 79, or 82) as a prerequisite — you must already be a registered rep before you can become a principal.[1][5]
| Detail | Series 24 exam |
|---|---|
| Scored questions | 150 multiple-choice (4 options each) |
| Pretest (unscored) | 10 — randomly mixed in; 160 total administered |
| Time limit | 3 hours 45 minutes (225 minutes) |
| Passing score | 70% (scaled via FINRA's equating process) |
| Exam fee | $235 per attempt |
| Co-requisite | SIE exam |
| Prerequisite | A representative license: Series 7, 57, 62, 79, or 82 |
| What it licenses | Supervision of a broker-dealer's securities & investment-banking business |
The exam is dominated by Function 2 — general broker-dealer supervision is nearly a third of the test — so spend your time accordingly:[2]
Function 2 alone is nearly a third of the exam. Functions 2–5 together are 94% — Function 1 is small but high-yield.
F1 · Supervision of Registration of the Broker-Dealer & Personnel Management
Function 1 — 6% of the exam (9 questions). It is the smallest function but high-yield because the rules are crisp and testable: how the firm itself registers, and how it hires, registers, and maintains its people.
1.1 Registering the Broker-Dealer & Offices
A broker-dealer registers through the Central Registration Depository (CRD) system. Know the uniform forms and which regulator does what — the SEC, the SROs (FINRA), and the states each have a role:
| Form | Purpose | Key point |
|---|---|---|
| Form BD | Register a broker-dealer | Filed in CRD with the SEC, FINRA, and states |
| Form BDW | Withdraw a BD's registration | Effective ~60 days after filing (subject to SEC action) |
| Form BR | Register / amend a branch office | One per branch; updated on changes |
| Form U4 | Register an associated person | Amend within 30 days of a change |
| Form U5 | Report a person's termination | File within 30 days; state the reason |
1.2 Hiring & Registering Associated Persons
Before hiring, the firm must investigate the applicant’s character, reputation, and qualifications, including reviewing the most recent — this prehire duty is in .[6] Then comes registration, ongoing continuing education, and — for higher-risk hires — a heightened plan:
| Topic | What to know |
|---|---|
| Prehire investigation | Review the U5 and available records; verify good character (Rule 3110(e)) |
| Statutory disqualification | Felony within 10 years, bars, willful false statements → needs FINRA relief (MC-400 / 19h-1) |
| Heightened supervision | Written, individualized plan for higher-risk reps |
| Regulatory Element CE | Completed annually by Dec 31 (Rule 1240) |
| Firm Element CE | Annual firm-designed training for customer-facing reps |
| Fingerprinting | SEA Rule 17f-2 — prints submitted to the FBI via FINRA |
Checkpoint · Function 1
Question 1 of 10
What is the required procedure if a registered representative wants to change their registration from one broker-dealer to another?
F2 · Supervision of General Broker-Dealer Activities
Function 2 — 30% of the exam (45 questions), by far the largest section. This is the heart of the principal’s job: building the supervisory system, supervising conduct and compensation, managing products, handling discipline and disputes, keeping books and records, and ensuring the firm stays financially sound. If you master one function cold, make it this one.
Supervision flows down; accountability flows up. Each business line needs a designated, qualified principal.
2.1 WSPs, Controls, Monitoring & Testing
The supervisory system is built on three linked rules. requires the system itself — , designated principals, designation, and internal inspections. tests whether the system works. makes the CEO certify it annually.[6][7][8]
| Rule | What it requires | Output |
|---|---|---|
| 3110 — Supervision | Supervisory system, WSPs, designated principals, OSJs, inspections | The supervisory framework |
| 3110(c) — Inspections | Inspect OSJs/supervisory branches annually; other branches ≤3 years | Written inspection reports |
| 3120 — Supervisory control | Test & verify the supervisory procedures | Annual report to senior management |
| 3130 — CEO certification | CEO certifies compliance processes annually | Signed annual certification |
| 4370 — Business Continuity | Written BCP + emergency contacts; review annually | The firm's BCP |
2.2 Conduct of Associated Persons
A principal supervises what reps do on andoff the firm’s books. The catch-all ethics rules are 2010 (high standards of commercial honor) and 2020 (no manipulative or fraudulent devices). The conduct rules require prior notice or approval before reps step outside the firm:
| Rule | Activity | Requirement |
|---|---|---|
| 3270 — Outside business activity | Any outside work for compensation | Prior written notice to the firm |
| 3280 — Private securities transactions | Selling away (securities outside the firm) | Prior written notice; written approval if compensated |
| 3240 — Borrowing/lending | Borrowing from or lending to a customer | Generally prohibited unless an allowed category + firm policy |
| 3210 — Outside accounts | Opening a securities account elsewhere | Prior written consent; duplicate confirms to the firm |
| 2150 — Customer funds/securities | Use of customer assets; guarantees; sharing | No improper use, no guarantees against loss |
A principal must also supervise for insider trading. Rule 10b-5 bars trading on material nonpublic information (MNPI) in breach of a duty; a valid Rule 10b5-1 plan is an affirmative defense. Under , firms must have risk-based procedures to review transactions for insider trading and manipulation, and SEA §21A allows penalties up to 3× the profit gained or loss avoided.
2.3 Compensation Practices
The principal supervises how money flows to and from reps and third parties. The headline rule is the $100 gift limit (Rule 3220) per person per year; non-cash compensation on investment-company and variable products is tightly restricted (Rule 2320(g)); and you can generally pay commissions only to registered persons (Rule 2040).
| Rule | What it covers |
|---|---|
| 3220 — Gifts | $100 per person per year limit on gifts to others' employees |
| 2320(g) — Non-cash comp | Restricts non-cash compensation on variable & investment-company products |
| 2040 — Payments to unregistered persons | No transaction-based pay to unregistered persons (limited retired-rep exception) |
| 3160 — Networking arrangements | BD on bank premises; NDIP disclosures (not FDIC-insured, may lose value) |
2.4 Products & Services
Before a firm offers a product, a principal must understand its risk characteristics, train reps on it, and conduct due diligence on new products with ongoing risk assessment. High-yield product rules include 2310 (direct participation programs), 2320 (variable contracts), 2330 (deferred variable annuities), and 2341 (investment-company securities). Suitability components for any recommendation come from .[21]
2.5 Disciplinary Actions & Disputes
When something goes wrong, a principal must know the reporting and forum rules. Report covered events to FINRA under Rule 4530 (generally within 30 days; complaint statistics quarterly), keep written-complaint records under Rule 4513, and know the two dispute systems:
| Process | Governs | Key point |
|---|---|---|
| Code of Procedure (8000/9000) | FINRA disciplinary actions | Investigation → Hearing Panel → NAC → SEC → courts |
| Code of Arbitration — 12000 | Customer disputes | Requires a customer agreement or customer election |
| Code of Arbitration — 13000 | Industry (member vs. AP) disputes | Generally required between members/APs |
| Code of Mediation (14000) | Voluntary settlement | Non-binding; a neutral mediator helps the parties agree |
| Rule 2080 — Expungement | Removing CRD complaint info | Needs a court order confirming a qualifying arbitration award |
2.6 Books & Records
Recordkeeping is split between two SEC rules: Rule 17a-3 lists the records a firm must make; Rule 17a-4 lists how long records must be preserved and how — including non-rewriteable, non-erasable WORM electronic storage under 17a-4(f). FINRA Rule 4511 is the general recordkeeping rule.[16]
| Rule / record | Retention | Note |
|---|---|---|
| 17a-3 (make) vs 17a-4 (preserve) | — | Make the record vs. keep the record |
| Blotters, ledgers, many records | 6 years | First 2 years readily accessible |
| Account & communication records | At least 3 years | First 2 years readily accessible |
| Partnership / corporate documents | Life of the firm | Plus 3 years after closing for some |
| 17a-4(f) — electronic storage | — | WORM format; indexing; third-party access undertaking |
2.7 Financial Responsibility
The two pillars of financial responsibility are the most heavily tested numbers in Function 2: the keeps the firm solvent, and the keeps customer cash and securities safe.[14][15]
- Maintain minimum net liquid assets
- Haircuts reduce the value of risky positions
- Early-warning notice (Rule 17a-11) if capital drops
- Special Reserve Bank Account for customers
- Possession or control of fully-paid securities
- Weekly reserve computation
Net capital keeps the firm solvent; customer protection keeps customer cash and securities safe and segregated.
| Rule | What it requires |
|---|---|
| 15c3-1 — Net capital | Minimum net liquid assets; haircuts on risky positions |
| 15c3-3 — Customer protection | Special reserve account + possession/control of customer securities |
| 17a-11 — Early warning | Notify SEC/FINRA when net capital drops below thresholds |
| 17a-5 — FOCUS report | Periodic financial reports + annual audited report |
| Reg T | 50% initial margin on marginable equities |
| 4210 — FINRA margin | 25% maintenance (long) / 30% (short); pattern-day-trader rules |
Checkpoint · Function 2
Question 1 of 10
Which document must a broker-dealer update when there is a change in the supervisory structure?
F3 · Supervision of Retail & Institutional Customer-Related Activities
Function 3 — 21.3% of the exam (32 questions). This is the customer-facing function: opening and maintaining accounts (with AML and privacy), reviewing communications with the public, and supervising recommendations and disclosures under the best-interest standard.
3.1 New Accounts, AML & Privacy
At account opening, the firm must verify identity through its and run the account through its (Rule 3310). It must also screen against the Treasury’s OFAC sanctions list and protect customer information under Regulation S-P (privacy) and Regulation S-ID (identity-theft red flags).[17][18]
| Requirement | What to know |
|---|---|
| CIP (PATRIOT Act) | Verify name, date of birth, address, ID number at opening |
| AML program (Rule 3310) | Policies, AML officer, training, independent testing (annual for most) |
| SAR (FinCEN) | Suspect transactions ≥ $5,000; file ~30 days; never tip off the customer |
| CTR (FinCEN) | Cash transactions over $10,000 in a day (aggregated) |
| OFAC | Screen against the SDN list; block prohibited dealings |
| Reg S-P / Reg S-ID | Privacy notices & opt-out; identity-theft prevention program |
3.2 Communications with the Public
sorts every communication into one of three categories, and the category drives whether a principal must pre-approve it and whether it must be filed with FINRA:[20]
| Category | Audience | Principal approval |
|---|---|---|
| Retail communication | More than 25 retail investors in 30 days | Yes — before first use (with exceptions) |
| Correspondence | 25 or fewer retail investors in 30 days | No pre-approval; supervised/reviewed |
| Institutional communication | Institutional investors only | No pre-approval; firm must supervise |
- 1Classify the communicationRetail (>25 retail / 30 days) · Correspondence (≤25) · Institutional
- 2Principal pre-approvalRetail communications: principal approves before first use (with exceptions)
- 3FINRA filing (if required)Fund / options / CMO / bond-volatility pieces; new firms file 10 business days before use
- 4Content & recordkeeping checkFair, balanced, not misleading; no performance predictions; keep records (Rule 17a-4)
- 5Supervise & retainRisk-based review (Rule 3110.12); retain the approval and the communication
Classify first — the category drives whether a principal must pre-approve and whether FINRA filing is required.
3.3 Transactions, Suitability & Reg BI
For retail customers, now sits on top of traditional suitability: a recommendation must be in the customer’s best interest, with the firm meeting Disclosure, Care, Conflict, and Compliance obligations, and delivering .[19] Underneath, still has its three components, and the trade rules govern pricing, confirmations, and discretion:
| Rule | What it requires |
|---|---|
| Reg BI (15l-1) | Best-interest standard for retail recommendations (4 obligations) |
| Form CRS (17a-14) | Short relationship summary delivered to retail investors |
| 2111 — Suitability | Reasonable-basis + customer-specific + quantitative (anti-churning) |
| 2121 — Fair prices | Fair & reasonable markups/commissions (the 5% policy is a guideline) |
| 2130 — Day-trading approval | Risk disclosure + approval for day-trading accounts |
| 3260 — Discretionary accounts | Prior written authorization; prompt principal approval of orders |
Checkpoint · Function 3
Question 1 of 10
What is the minimum frequency at which a principal must conduct a review of all transactions relating to variable annuities?
F4 · Supervision of Trading & Market Making
Function 4 — 21.3% of the exam (32 questions). The trading-desk function: supervising order entry, routing, and execution; confirming trades book and settle correctly; and ensuring executions are reported on time. It is rule-dense — Regulation SHO, Regulation NMS, and the FINRA trading rules all live here.
4.1 Order Entry, Routing & Execution
The principal supervises trader mandates, market-making and quoting, and the firm’s obligations to customers. The two big federal frameworks are (short sales) and (the national market system), and the duty owed to each customer order is .[22][23][24]
| Rule | What it requires |
|---|---|
| Reg SHO 200/203/204 | Mark long/short/short-exempt; locate before shorting; close out fails |
| 5310 — Best execution | Reasonable diligence for the best market; regular & rigorous review |
| Reg NMS 611 | Order Protection Rule — no trade-throughs of protected quotes |
| 5320 — Manning rule | No trading ahead of a customer's order at a price that fills it |
| 5270 — Front running | No trading on advance knowledge of an imminent block trade |
| 15c3-5 — Market access | Pre-trade financial & regulatory risk controls |
| Reg M 104/105 | Stabilizing bid never above offer price; no shorting before a covered offering |
4.2 Booking & Settlement of Trades
Every trade needs a confirmation and must settle on the standard cycle. SEC Rule 10b-10 requires a confirmation disclosing capacity, price, and commission at or before completion of the transaction, and the for most securities (effective May 2024). When a seller fails to deliver, the buyer may use the buy-in procedures (FINRA 11800 series).[26]
| Concept | What to know |
|---|---|
| Rule 10b-10 — Confirmation | Discloses capacity (agent/principal), price, commission, time on request |
| Rule 15c6-1 — Settlement | T+1 for most securities (since May 2024) |
| Buy-in (11800 series) | Buyer buys in after notice if the seller fails to deliver |
| Riskless principal trade | Firm offsets a customer order at the same price + disclosed markup |
4.3 Trade Reporting
Executions must be reported to the right facility, on time. Equity off-exchange trades go to a Trade Reporting Facility (TRF); OTC fixed income goes to (within ~15 minutes); and every order’s lifecycle is captured by the .[25]
| Facility | Reports | Timing |
|---|---|---|
| TRF | Off-exchange NMS equity trades | ~10 seconds during market hours (seller reports) |
| TRACE (6700 series) | OTC corporate/agency/securitized debt | Within 15 minutes of execution |
| CAT (6800 series) | Lifecycle of every NMS & OTC equity order | Synchronized clocks; reported per schedule |
Checkpoint · Function 4
Question 1 of 10
When reviewing trade blotters, what must a principal specifically look for regarding non-exempt securities?
F5 · Supervision of Investment Banking & Research
Function 5 — 21.3% of the exam (32 questions). The capital-markets function: supervising public and private offerings, due diligence, M&A and tender-offer advisory, and the research department — with information barriers separating banking from research and trading.
5.1 Offerings, Due Diligence & Information Barriers
A registered offering moves through the three periods of , and FINRA reviews the deal’s economics. requires filing offering documents and bars unfair underwriting terms; Rule 5121 handles conflicts of interest (sometimes via a Qualified Independent Underwriter); and bars selling equity IPOs to restricted persons.[27][28][29]
The dividing lines are filing and effectiveness: offers begin at filing, sales begin at effectiveness.
Private capital flows through , and advisory work covers M&A, , and . Throughout, the firm maintains so material nonpublic information in banking does not reach research or trading.[30][31]
| Rule / regime | What to know |
|---|---|
| §5 — three periods | Pre-filing (no offers) → waiting (offers, red herring, no sales) → post-effective (sales) |
| 5110 — Corporate Financing | File offering docs; no unfair underwriting terms/compensation |
| 5121 — Conflicts | Conflict-of-interest offerings; may require a QIU + disclosure |
| 5130 / 5131 — IPOs | No equity IPOs to restricted persons; no spinning / quid pro quo |
| Reg D 506(b)/506(c) | 506(b): no solicitation, ≤35 non-accredited; 506(c): solicitation, accredited-only + verify |
| Tender offers (Williams Act) | ≥20 business days open; all-holders + best-price (14d-10); 14e-3 MNPI bar |
| 5150 — Fairness opinions | Disclose conflicts; financial fairness of price only |
5.2 Disclosure Materials & Pitch Books
The principal reviews investor disclosure materials, pitch books, and offering communications. The central question is whether a communication is a prospectus: the is the waiting-period prospectus, and a set of rules defines what is not a prospectus — tombstones (Rule 134), generic ads (Rule 135a), and the free writing prospectus (Rules 164/433). Prospectus delivery itself is governed by SEC Rule 15c2-8.
5.3 Research
Supervising research means knowing what constitutes research, how reports are approved and disseminated, and the disclosure rules for analysts who make public appearances. requires information barriers, limits banking influence, mandates conflict disclosures, and imposes quiet periods; SEC requires the analyst to certify their views and disclose related compensation.[32]
| Rule | What it requires |
|---|---|
| 2241 — Research analysts | Information barriers; no banking influence; conflict disclosures; quiet periods |
| Reg AC — Analyst certification | Analyst certifies the views are their own; discloses compensation |
| Rules 137/138/139 | Safe harbors for research published around a distribution |
| §28(e) — Soft dollars | Safe harbor for using commissions to pay for research/brokerage |
Checkpoint · Function 5
Question 1 of 10
What specific action is required from a supervising principal if a conflict of interest potentially impacts the objectivity of research reports?
How to Use This Study Guide
A study guide is a map, not the whole territory — use it alongside your prep provider’s materials and our practice tools, and lean hard into Function 2:
- 1
Read a function here
Work through one function at a time. Spend the most time on Function 2 — it's 30% of the exam.
- 2
Take the checkpoint
The check at the end of each function exposes what didn't stick.
- 3
Drill the gaps
Send your weak area straight into the free practice test and flashcards.
- 4
Bookmark & space it out
Come back over several days. Short, spaced sessions beat one long cram.
Series 24 Concept Questions
Common Series 24 concepts FINRA tests on the exam. Tap any card for a short, exam-ready answer backed by an official primary source — then test yourself on them as flashcards.
Series 24 Glossary
Quick definitions for the terms you’ll see most on the Series 24 exam:
- Anti-money laundering (AML) program
- A written program (FINRA Rule 3310) with policies to detect/report suspicious activity, a designated AML officer, training, and independent testing.
- Best execution (FINRA Rule 5310)
- The duty to use reasonable diligence to obtain the most favorable terms reasonably available for a customer's order, with regular and rigorous execution-quality review.
- Consolidated Audit Trail (CAT)
- A database tracking the lifecycle of every order in NMS securities and OTC equities; industry members report order events with synchronized clocks.
- Customer Identification Program (CIP)
- The BSA/USA PATRIOT Act process of verifying each customer's identity at account opening using name, date of birth, address, and an identification number.
- Customer Protection Rule (SEA Rule 15c3-3)
- Requires a Special Reserve Bank Account for the exclusive benefit of customers and physical possession or control of customers' fully-paid and excess-margin securities.
- Early-warning notice (SEA Rule 17a-11)
- Notification a firm must give the SEC/FINRA when its net capital falls below specified thresholds, signaling possible financial distress.
- Fairness opinion (FINRA Rule 5150)
- A written opinion that a deal's consideration is financially fair to shareholders; the rule requires disclosure of the firm's conflicts of interest.
- FINRA Rule 2111 (suitability)
- Requires a reasonable basis to believe a recommendation is suitable, in three parts: reasonable-basis, customer-specific, and quantitative (anti-churning) suitability.
- FINRA Rule 2210 (communications)
- Classifies communications as retail, correspondence, or institutional and sets principal-approval, filing, and content standards (fair, balanced, not misleading).
- FINRA Rule 2241 (research)
- Governs research reports and analysts — information barriers, limits on banking influence over research, conflict disclosures, and quiet periods.
- FINRA Rule 3110
- The core Supervision rule — requires a supervisory system, WSPs, designated principals, OSJ designation, internal inspections, and review of correspondence and transactions.
- FINRA Rule 3120
- The Supervisory Control System rule — the firm tests and verifies that its supervisory procedures are reasonably designed, and reports the results to senior management.
- FINRA Rule 3130
- Requires the CEO to certify annually that the firm has processes to establish, maintain, review, test, and modify its WSPs and supervisory controls.
- FINRA Rule 5110 (Corporate Financing Rule)
- Requires members to file public-offering documents with FINRA and prohibits unfair or unreasonable underwriting terms and compensation.
- FINRA Rule 5130
- Prohibits selling equity IPOs (new issues) to 'restricted persons' such as broker-dealers, their employees, and certain immediate family.
- Firm Element
- An annual, firm-designed continuing-education program for covered registered persons who deal with customers, covering products, services, and compliance.
- Form CRS
- A short Customer/Client Relationship Summary (SEA Rule 17a-14) delivered to retail investors, summarizing relationships, services, fees, conflicts, and disciplinary history.
- Form U4
- The Uniform Application for Securities Industry Registration — registers an associated person and discloses their background and disclosure events. Amend within 30 days of a change.
- Form U5
- The Uniform Termination Notice — filed within 30 days of a registered person's termination, stating the reason for termination.
- General Securities Principal
- A person qualified by the Series 24 exam to supervise and manage a broker-dealer's investment-banking and securities business, including the conduct of associated persons.
- Heightened supervision
- An enhanced, written, individualized supervisory plan applied to a registered person who presents elevated risk, typically with a designated supervisor and extra review steps.
- Information barrier (Chinese wall)
- Policies and procedures separating investment banking (which receives material nonpublic information) from research and trading.
- Net capital rule (SEA Rule 15c3-1)
- Requires a broker-dealer to maintain minimum net liquid assets, applying haircuts to risky positions, so it can meet obligations to customers and counterparties.
- Office of Supervisory Jurisdiction (OSJ)
- An office where high-risk supervisory functions occur (order execution/market making, structuring offerings, holding customer funds/securities, final approval of new accounts or communications). Each OSJ must have an on-site principal.
- Red herring (preliminary prospectus)
- The prospectus used during the waiting period; it has no final offering price and cannot be used to accept orders or money.
- Regulation Analyst Certification (Reg AC)
- Requires a research analyst to certify that the views in a report reflect their personal views and to disclose related compensation.
- Regulation Best Interest (Reg BI)
- Requires a broker-dealer to act in a retail customer's best interest when recommending a securities transaction, under Disclosure, Care, Conflict, and Compliance obligations.
- Regulation D
- The safe harbor for §4(a)(2) private placements: Rule 506(b) (no solicitation, up to 35 non-accredited) and Rule 506(c) (solicitation, accredited-only with verification).
- Regulation NMS
- The SEC national-market-system framework, including the Order Protection Rule (611) that bars trade-throughs of protected quotations.
- Regulation SHO
- The SEC short-sale framework: order marking (Rule 200), the locate requirement (Rule 203), and the close-out requirement for fails-to-deliver (Rule 204).
- Regulation T
- The Federal Reserve credit rule: the initial margin requirement for marginable equity securities is 50%, with a payment deadline tied to settlement.
- Regulatory Element
- Continuing education completed annually (by December 31) under FINRA Rule 1240 to keep a registration current.
- Securities Act §5
- The master prohibition dividing a registered offering into the pre-filing, waiting, and post-effective periods.
- Settlement cycle (Rule 15c6-1)
- The standard settlement cycle for most securities is T+1 (trade date plus one business day), effective May 2024.
- Statutory disqualification
- A status (from certain felonies, specified misdemeanors, bars, expulsions, or willful false statements) that bars association unless FINRA grants relief (MC-400 / SEA Rule 19h-1).
- Suspicious Activity Report (SAR)
- A confidential report filed with FinCEN for suspect transactions of $5,000 or more; the customer must not be told ('tipping off' is prohibited).
- Tender offer
- A public offer to buy shares directly from holders for a limited time, usually at a premium; regulated by the Williams Act (20-business-day minimum, all-holders/best-price).
- TRACE
- FINRA's Trade Reporting and Compliance Engine for reporting OTC fixed-income transactions, generally within 15 minutes of execution.
- Written supervisory procedures (WSPs)
- The firm's documented procedures, required by FINRA Rule 3110(b), for supervising its business and associated persons to achieve compliance with securities laws and FINRA rules.
Free Series 24 Study Materials & Resources
Everything you need to pass the Series 24 is free here — no paywall, no sign-up. This guide is the foundation; pair it with the rest of our free Series 24 study materials for active recall, timed practice, and last-minute review:
- Series 24 Practice Test — full-length, timed, FINRA-style questions with explanations.
- Series 24 Flashcards — active-recall decks for the high-yield rules and supervisory facts.
Series 24 Study Guide FAQ
The Series 24 has 150 scored multiple-choice questions plus 10 unscored pretest questions, for 160 total. You get 3 hours and 45 minutes and must score 70% to pass. The pretest questions are not identified and do not count toward your score.
You have 3 hours 45 minutes (225 minutes) for the 160 questions, and the passing score is 70%, placed on a common scale through FINRA's equating process. The exam fee is $235 per attempt.
Yes. The SIE is a co-requisite, and you must already hold a representative license — the Series 7, 57, 62, 79, or 82 (or the 17/37/38 modules) — before you can register as a General Securities Principal. You also need FINRA member-firm sponsorship.
The Series 24 qualifies you as a General Securities Principal: you may supervise and manage a broker-dealer's investment-banking and securities business — including the conduct of associated persons, advertising, trading, and underwriting — under FINRA Rule 1220(a). It is a supervisory license, not a sales license.
Function 2 — Supervision of General Broker-Dealer Activities — is the largest section at 30% (45 questions) and concentrates the densest material: written supervisory procedures, financial responsibility (net capital and customer protection), books and records, and the disciplinary and arbitration codes. Most candidates also find Function 4 trade-reporting and Regulation SHO/NMS rules detail-heavy.
Five functions: Supervision of General Broker-Dealer Activities is 30% (45 questions); Supervision of Retail and Institutional Customer-Related Activities, Supervision of Trading and Market Making, and Supervision of Investment Banking and Research are each 21.3% (32 questions); and Supervision of Registration and Personnel Management is 6% (9 questions).
Read it function by function, spending the most time on Function 2. Take each function's checkpoint to find gaps, then drill that area with our free practice test and flashcards. Bookmark the page, check off sections as you master them to raise your readiness score, and revisit flagged areas before exam day.
Yes — the full guide, the checkpoints, the glossary, the practice test, and the flashcards are 100% free with no account required.
References
- 1.FINRA. “Series 24 — General Securities Principal Exam.” FINRA.org. ↑
- 2.FINRA. “Series 24 Content Outline (General Securities Principal, PDF).” FINRA.org. ↑
- 3.FINRA. “Securities Industry Essentials (SIE) Exam.” FINRA.org. ↑
- 4.FINRA. “Schedule of Registration and Examination Fees.” FINRA.org. ↑
- 5.FINRA. “Rule 1220 — Registration Categories.” FINRA.org. ↑
- 6.FINRA. “Rule 3110 — Supervision.” FINRA.org. ↑
- 7.FINRA. “Rule 3120 — Supervisory Control System.” FINRA.org. ↑
- 8.FINRA. “Rule 3130 — Annual Certification of Compliance and Supervisory Processes.” FINRA.org. ↑
- 9.FINRA. “Rule 4370 — Business Continuity Plans and Emergency Contact Information.” FINRA.org. ↑
- 10.FINRA. “Rule 1240 — Continuing Education Requirements.” FINRA.org. ↑
- 11.FINRA. “Rule 3270 — Outside Business Activities of Registered Persons.” FINRA.org. ↑
- 12.FINRA. “Rule 3280 — Private Securities Transactions of an Associated Person.” FINRA.org. ↑
- 13.FINRA. “Rule 3220 — Influencing or Rewarding Employees of Others (Gifts).” FINRA.org. ↑
- 14.Electronic Code of Federal Regulations. “17 CFR § 240.15c3-1 — Net Capital Requirements for Brokers or Dealers.” eCFR.gov. ↑
- 15.Electronic Code of Federal Regulations. “17 CFR § 240.15c3-3 — Customer Protection—Reserves and Custody of Securities.” eCFR.gov. ↑
- 16.Electronic Code of Federal Regulations. “17 CFR § 240.17a-4 — Records to Be Preserved by Certain Exchange Members, Brokers and Dealers.” eCFR.gov. ↑
- 17.FINRA. “Rule 3310 — Anti-Money Laundering Compliance Program.” FINRA.org. ↑
- 18.Financial Crimes Enforcement Network. “Bank Secrecy Act Requirements.” FinCEN.gov. ↑
- 19.U.S. Securities and Exchange Commission. “Regulation Best Interest (Rule 15l-1).” Investor.gov. ↑
- 20.FINRA. “Rule 2210 — Communications with the Public.” FINRA.org. ↑
- 21.FINRA. “Rule 2111 — Suitability.” FINRA.org. ↑
- 22.U.S. Securities and Exchange Commission. “Key Points About Regulation SHO.” SEC.gov. ↑
- 23.FINRA. “Rule 5310 — Best Execution and Interpositioning.” FINRA.org. ↑
- 24.U.S. Securities and Exchange Commission. “Regulation NMS (Final Rule, 34-51808).” SEC.gov. ↑
- 25.FINRA. “Trade Reporting and Compliance Engine (TRACE).” FINRA.org. ↑
- 26.Electronic Code of Federal Regulations. “17 CFR § 240.15c6-1 — Settlement Cycle.” eCFR.gov. ↑
- 27.U.S. Securities and Exchange Commission. “The Laws That Govern the Securities Industry.” SEC.gov. ↑
- 28.FINRA. “Rule 5110 — Corporate Financing Rule—Underwriting Terms and Arrangements.” FINRA.org. ↑
- 29.FINRA. “Rule 5130 — Restrictions on the Purchase and Sale of Initial Equity Public Offerings.” FINRA.org. ↑
- 30.U.S. Securities and Exchange Commission. “Regulation D Offerings.” SEC.gov. ↑
- 31.FINRA. “Rule 5150 — Fairness Opinions.” FINRA.org. ↑
- 32.FINRA. “Rule 2241 — Research Analysts and Research Reports.” FINRA.org. ↑
- 33.Federal Trade Commission. “Hart-Scott-Rodino Premerger Notification Program.” FTC.gov. ↑
- 34.Securities Investor Protection Corporation. “What SIPC Protects.” SIPC.org. ↑
Sources for the concept answers
Every answer in the Series 24 concept questions above is drawn from an official primary source:
- FINRA. “Forms U4 and U5.” FINRA.org, accessed 19 June 2026.
- U.S. Securities and Exchange Commission. “Tender Offer.” Investor.gov, accessed 19 June 2026.
- Electronic Code of Federal Regulations. “17 CFR § 240.10b5-1 — Trading 'on the basis of' material nonpublic information.” eCFR.gov, accessed 19 June 2026.
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