Series 55

Written by Pete Nicholls
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The Series 55 exam is required for any individual who plans to trade equity and convertible securities on either a principal or agency basis. Basically, the exam is supposed demonstrate that traders have a thorough and consistent understanding of securities practices as well as the industry rules and regulations. Keep in mind that if you wish to sit for the Series 55, you will also be required to sit for the Series 7 and the Series 62. This is required for any individual requesting registration as an Equity Trader.

The Series 55 exam is administered by the NASD and is composed of 100 multiple choice questions. Students are given 3 hours to complete this exam, and a required score of 70 percent or better is passing. Test topics include NASDAQ Market and Market Maker Activities, NASDAQ Auto Execution/Trading, Trade Reporting Requirements, and General Industry Standards. The bulk of the questions will focus on the NASDAQ Market and Market Maker Activities category.

Studying for the Series 55

It is always a good idea to allow yourself enough time to fully prepare for this exam. Most students who spend at least one to two hours a day on studying the exam material, pass the test the first time around. There are some great home study aids available such as textbooks, videos, CDs, and audio cassettes that can help you learn the material with greater ease.

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