AVAILABLE COURSES - Series 26

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Series 26 EXAM INFORMATION

What is the Series 26 exam?

The Financial Industry Regulatory Authority (FINRA (formerly NASD)) Series 26 exam is the licensing test that one must pass in order to manage those whose hold a Series 6 license. In order to take the exam, one must first obtain "sponsorship"/employment from a FINRA or exchange member firm. In addition, one must submit a set of fingerprints and undergo a basic background check. Typically to register with a firm and consequently the exam you have to complete a U-4 application. On this application you must disclose such things as prior work history, criminal background (if any), etc.

Series 26 Exam Overview

Time limit: 2 hours 30 minutes
Exam administration: The Series 26 exam is multiple choice and is given on computer
Number of questions: 110 total
Pre-requisites: You have to be sponsored by a broker/dealer to schedule to sit for the Series 26 exam through FINRA
Exam fee: $75
Exam Locations: You can schedule your Series 26 test with either Prometric (www.prometric.com) or Pearson VUE (www.pearsonvue.com)
Exam dates: The Series 26 exam is administered Monday through Friday

Common Series 26 requirements and exam candidate questions:

What is the Series 26 exam?

The Series 26 exam is an exam that is required of individuals that will be managing those who hold a Series 6 license. In order to hold a Series 26 license an individual must also hold either a Series 6 or Series 7 license. The Series 24 license is similar but allows individuals to manage those who hold a Series 7 license versus a Series 6 license.

What content specifically does the Series 26 exam cover?

The Series 26 exam covers content such as hiring and qualification, training of representatives, supervision, sales practices and business processing and recordkeeping rules.

What happens if I fail the Series 26 exam?

If you study correctly you will pass this exam. However, if for some reason you do fail on your first attempt at the Series 26 exam, your sponsor can submit an amendment to reopen a window in which you can take the exam again. This window will not open until 30 days since your last exam attempt has transpired. At this point, your window will be open for 90 days.

There is no requirement for a sponsor firm to terminate your employment should you fail. However, every time you rewrite the exam, you must pay the required $75 registration fee. So your employer may require you to reimburse the fees paid to re-schedule the exam.

After three failed attempts, you must wait six months before you can re-take the exam for the fourth time. The six-month requirement is intended to provide a window in which an individual can ensure he or she is prepared for the fourth exam attempt. This process will then continue indefinitely, as there is no limit as to the number of times you can attempt the series 26 exam.

What do the questions on the Series 26 exam look like?

Here are two Series 26 exam questions that come from our materials that are very similar to the formatting and content of the questions on the exam:

1. To open a new account on behalf of a corporation, a RR would need which of the following:
   
   
   1. A new account form completed by each member of the board of directors
   2. A new account form completed by the corporation’s CEO
   3. A corporate resolution
   4. A power of attorney
   
   
2. A broker/dealer firm would not be allowed to expand their business if their ratio of aggregate indebtedness to net capital exceeds _________, or their books and records are not current:
   
   
   1. 5 to 1
   2. 8 to 1
   3. 12 to 1
   4. 15 to 1

Answers and explanations to the above questions as found in our comprehensive Series 26 exam prep online and print materials as follows:

1.    D    Since a corporation is considered to be an ‘artificial’ person, the corporate board of directors must pass a resolution designating someone to make trades on the corporation’s behalf.
2.    B    Aggregate indebtedness (AI) represents certain liabilities of a member firm. SEC rules state that an established broker/dealer firm’s aggregate indebtedness must not exceed the firm’s net capital (NC) by more than 15 to 1. Simply stated, for every dollar the firm has in net capital, it cannot have more than $15 in aggregate indebtedness. Further, broker/dealer firms who have been in business less than one year must not let their aggregate indebtedness exceed their net capital by more than 8 to 1.

FREE SERIES 26 EXAM TEST PASSING TIPS/TRICKS

The Series 26 testing tips below have been compiled by our FINRA Series 26 exam prep instructors which have over 35 years of Series 26 exam training experience and are provided for FREE to anyone taking the Series 26 exam as a thank you for visiting our site. Our primary goal is to help you pass the Series 26 exam. Please make sure to tell anyone you know about our site so they too can view these Series 26 exam study tips prior to taking their Series 26 test.

How to prepare for the Series 26 Exam:

Your Series 26 prep is crucial. You cannot simply attend a Series 26 training lecture class or read a Series 26 training book and pass the Series 26 test. You MUST understand the concepts and regulations the Series 26 exam is based upon. We have the most test specific Series 26 training in the industry.

How to know you are ready to pass the Series 26 exam:

You should be able to pass all the exams included in your Series 26 study materials until you can score a minimum of 90% or better, understanding why the correct answer is correct, and the incorrect answers are incorrect.

Click here to print 25 of the best Series 26 practice exam questions that we have to offer for FREE

The questions above are included in our full Series 26 online course. Our full online video Series 26 study course actually includes over 600 practice exam questions with answers and explanations.

DO NOT memorize the questions included in your Series 26 study materials!

Why? The questions on the real exam will be different. It doesn't matter whose materials you are using to study for the Series 26 test. The company that creates the questions on the real Series 26 exam has thousands of questions in their database that they pull from to create your Series 26 test for you on the spot. Memorizing the Series 26 questions in your Series 26 exam study material is a sure fire way to fail the exam.

What to do the night before your Series 26 test:

DO NOT stay up all night cramming. This may have worked in college but it will not work now. Why? Let's face it. Most of us taking this exam are NOT fresh out of college. When was the last time you stayed up until 4 in the morning? Shocking your body is not a smart thing to do the night before what could be the biggest test of your life. You must be rested the day of your Series 26 exam. Get a good night sleep and make sure to eat a good breakfast the morning of your test.

What to do on the day of your Series 26 exam:

Get to the test center early. There is nothing worse than encountering a traffic jam on the way to your test and getting stressed out about making it on time. You will have to arrive early as you will want to sit in your car at the test center and read the Key Facts that were provided in our online video course three times prior to going in to take the test. This is one of the most important steps in preparing to obtain your Series 26 license. Why? It is imperative that you load your memory of the concepts you will be asked about on the Series 26 test just prior to taking it. This way, all of the most important information is fresh in your mind when you go into the exam. Our Series 26 online course includes hundreds of Key Facts that are very Series 26 exam specific.

Click here to print some FREE Series 26 Exam Key Facts to take with you to your test

The Key Facts above come from our online course. Of course, if you would like the full copy you can register for our Series 26 Online Video course to access them.

How you should take the Series 26 test:

The most important tip we can give you is to READ THE QUESTION! This most likely sounds pretty stupid. However, I would imagine as you have studied for the Series 26 test you have missed many questions simply because you did not read them correctly. Read the question twice before even looking at the answers, then read every answer before picking which one you think is correct. Answer A may look good, but answer D may be better.

NEVER pick an answer you have not heard of. They will make words up on the Series 26 exam that do not even exist. If it has not been covered in our Series 26 online video exam prep course, it is not a correct answer on the exam.

Only mark those questions for review you really don't know the answer to, or you have narrowed it down to two possible correct answers. DO NOT review the full exam once you have completed it. In our experience if you review the full exam you may get confused and start changing answers. Your first selection is your best. Only review those questions you have marked for review.

Here are the SECRETS to passing the Series 26 exam:

The following Series 26 secrets will teach you how to attack the most difficult Series 26 exam question formats. The two following sample Series 26 exam question formats are presented directly from our Series 26 Exam specific Study Manual:

Question format #1 - The double negative EXCEPT question

1. All of the following are true regarding branch offices, EXCEPT:

1. A listing or advertisement in a telephone directory indicates that a location is a branch office
2. The residence of a RR may not be considered a branch office
3. Supervisory branch offices are subject to annual internal inspections
4. Non-supervisory branch offices must be inspected once every 3 years

How to attack this question: These EXCEPT questions are very difficult for your brain to interpret. Here is why. You have never encountered exam questions in your entire testing lifetime that were worded this way. For example, if the above question was on a test you took back in school it would be worded the following way:

Which of the following is FALSE regarding branch offices:

However, on the Series 26 exam most of the questions are not straight forward and are written in a format that is very confusing. You have to train your brain to learn new key words. I bet you think the most important terms in the Series 26 Exam sample question above are, "branch offices". Normally this would be correct, however the most important word in the question is actually EXCEPT. When you see the word EXCEPT it means the correct answer to the question is actually the opposite of what the question is stating.

Remember that you must READ THE QUESTION at least twice to determine what the question is asking prior to looking at the answers. So, which of those answers listed is FALSE? Well, since answers A, C and D are true answer B must be the correct answer. Here is the tricky part. Your brain will read this question and then Answer A, which is a true statement, and then want to pick answer A since it is true. If you do, you will miss this question, and possibly fail the Series 26 exam. So be careful!

These questions are great because they give you three true statements that may help you answer another question within the Series 26 exam (answers A, C and D).

Question Format #2 - The dreaded roman numeral question

Which of the following individuals associated with a member firm must be registered as principals:

1. Branch office managers
2. Managers of OSJs
3. All officers with active roles in the securities business of the firm
4. Clerical employees handling cash or securities

1. I and II
2. I and IV
3. II and III
4. III and IV

How to attack this question: When you encounter this question write down the roman numerals and answers on your scratch paper then read through the first roman numeral response and determine if it will be in the correct answer or not.

On your scratch paper after you read through response I above you would write no since response I will not be in the answer. Then you can look at the answers. LOOK AT THE ANSWERS ABOVE. Since answer A and B has roman numeral I in it you already know neither one is the correct answer. You have now significantly increased your chances of getting the answer correct. Then you move on to roman numeral II. Is it going to be in the correct answer? Yes. Knowing this rules out answer D since you it does not include roman numeral II. There you have it! THE CORRECT ANSWER HAS TO BE C!! You did not even have to read roman numerals III and IV. However, you might as well Read roman numeral III since it might help you later on in the Series 26 test!!

Once you have mastered the Series 26 exam question techniques outlined above you will significantly increase your chances of passing the exam the first time and obtaining your Series 26 license.

They will provide you everything you need at the test center:

They will provide you a calculator, scratch paper and pencil. You do not need to bring any of these items with you. You cannot take a programmable calculator into the Series 26 test.

Why are we providing you this information for FREE? We want you to pass your Series 26 exam on your first attempt. In fact, we will do whatever we can to assist you in passing your exam short of taking it for you! There should be absolutely no reason for you to fail the Series 26 test. We are confident if you employ the information provided above you will find success on your Series 26 exam and obtain your Series 26 license. You may know others within your organization that will be taking the Series 26 exam as well. Please share our site them. Thank you for visiting our site and good luck with your exam!!