Series 87 study guide
Series 87 · Work through your exam, one topic at a time.
The Series 87 - Research Analyst Qualification Examination - is one of FINRA's qualification exams for securities professionals whose work involves research. FINRA describes itself as a not-for-profit, self-regulatory organization with an 85-year history that pursues a mission of promoting investor protection and ensuring market integrity, and it administers its qualification exams through its Registration, Exams & CE section. The Series 87 blueprint is organized around four areas of equal emphasis: the content, preparation and standards of research reports; research analyst conflicts of interest and prohibited conduct; communications with the public and public appearances; and supervision, recordkeeping and regulatory obligations. Candidates are typically research associates, analysts and the supervisors who review their output, and they should expect scenario-based multiple-choice items rather than pure definition recall. The Series 87 study guide has 4 sections and about 1,198 words.
01Research Report Content, Preparation, and Standards
Under FINRA Rule 2241, a research report is a written or electronic communication that analyzes a company or industry and contains a recommendation. Oral statements are public appearances, not reports.
314 words, about 2 min02Research Analyst Conflicts of Interest and Prohibited Conduct
Rule 2241 requires information barriers between research and investment banking. Analysts may not be supervised by investment banking, may not solicit investment banking business, and may not have compensation tied to investment banking revenue or to specific recommendations.
294 words, about 1 min03Communications with the Public and Public Appearances
FINRA Rule 2210 requires communications with the public to be fair and balanced and free of false, misleading, exaggerated, or promissory statements. Research recommendations must explain the basis for the recommendation and disclose risks.
297 words, about 1 min04Supervision, Recordkeeping, and Regulatory Obligations
FINRA Rule 3110 requires written supervisory procedures reasonably designed to achieve compliance. Research must be supervised by a designated supervisory analyst who is not part of investment banking.
293 words, about 1 min