There are a variety of FINRA license exams you must pass depending on the financial industry career you’re interested in. Amongst the most difficult of exams is the Series 86/87, a two-part exam which will lead to becoming a research analyst, of which there are different specializations to branch out from.
In this article, we’re going to break down the requirements and some advice for the Series 86/87 license exam, as well as the salary range and responsibilities a research analyst career entails.
The Series 86 Exam
To advance in the Series 86 exam, you will need to put in a lot of effort. The 86 series is unique in that concepts or questions cannot be memorized right away. A deeper understanding is required to go beyond formulas and concepts.
Each portion of the 86/87 series test is overseen by FINRA, a state-approved non-profit supervisory US broker-dealer. The 86th section of the exam, which consists of 100 questions, will assess analytical research competency. It will be most beneficial to research study guides to Series 87 and make the most of online prep courses.
The Series 86 exam is a four-and-a-half-hour in-person, closed-book examination. Participants must register for one of thousands of Prometric Test Centers in order to pass with a score of 73 percent or above. The fee of this portion of the test is 185 dollars.
The Series 87 Exam
Part two of the examination series 87 looks at administrative regulations and best practices. Registrants for Series 87 have 1 hour and 45 minutes to complete 50 questions, which cost $130. To pass this component, test takers must have a score of 74% or above.
Series 87 measures skill in two areas: the development of research reports and the exchange of knowledge.
- Preparation of research reports: This section assesses the capacity to create research reports, to adhere to regulatory requirements while generating research reporting, and to generate reports with evidence and analysis-based conclusions.
- Dissemination of information: How completely and clearly you transmit and talk about your ideas to clients, buyers, and the media is also assessed. This component of the test is designed to examine the candidate’s ability to discuss market movements with clients, institutional and retail sales personnel, and the trading department.
Career and Salary for the Series 86/87 License
Being one of the most difficult FINRA license exams, the Series 86/87 license rewards your effort with one of the best and most lucrative business careers in research analysis.
You can produce financial business research reports after completing the Top-Off Exams in Series 86 and 87. Research analysts gather information on a firm, its industry, and its rivals, then analyze the information to determine the company’s worth and trajectory. Financial modeling and other technical analysis are important components of this endeavor.
The Research Analyst then prepares a public consumption research report with its own identity and company name. As you can expect, people are enthralled by these tales.
The job responsibilities of a research analyst include:
While gathering data, research analysts use mathematical, statistical, and analytical models to uncover trends that suggest business opportunities. For example, the data might reveal a fundamental flaw in how a company interacts with its customers, resulting in negative experiences.
The data at hand enables research analysts to create new solutions to improve the connection between the firm and its customers and provide more commercial opportunities.
The collecting of data to help managers in recognizing the value of business is one of the roles and duties of research analysts. Research analysts create communications to provide insights into what the data indicates in order to make decisions simpler.
In meetings and conference calls, research analysts assess data, present what they’ve learned, and explain its value from a business standpoint.
Career trajectory for Research Analysts
Because of the position’s versatility, research analysts can pursue a variety of occupations. Research analysts may work in technology, marketing, health care and finance, state finances, public policy, management consulting, aviation, and other fields.
The job titles of research analysts may differ depending on the sector in which they work. Investment analysts, financial analysts, securities analysts, or insurance analysts, for example, are research analysts who work for an investment bank, financial institution, securities firm, or insurance company.
Financial analysts evaluate, collect, and analyze financial data in order to make business decisions in financial organizations. Market research analysts and operational research analysts are also prevalent jobs.
The national average salary for Research Analysts is $65,205 per year in the United States, according to Glassdoor.