12-12-2012, 06:39 PM
Research Analyst Qualification Exam
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Introduction
This Content Outline is a guide to the topics covered in the Research Analyst Qualification Examination (Series 86/87). This outline is intended to familiarize examination candidates with the range of subjects covered by the examination. The Research Analyst Qualification Examination (Series 86/87) is intended to ensure that research analysts are competent to perform their jobs. In light of this stated purpose, the Series 86/87 examination is designed to measure the knowledge, skills and abilities associated with the critical job functions of a research analyst.
A job analysis study was conducted to ensure a representative relationship between the contents of the examination and the job performed by research analysts. A group of research analysts and professionals who supervise research analysts identified and described four critical job functions.
The content outline delineates the four critical job functions of the research analyst, the tasks that are associated with the four critical functions, and the knowledge and skills that are necessary to perform the tasks. In addition, the content outline delineates federal and industry rules and regulations that are associated with the work of a research analyst. The content outline serves as a guide to the topics that are covered on the Research Analyst Qualification Examination. It is recommended that candidates review the content outline prior to taking the examination.
Individuals Required to Complete the Examination
As required by NYSE Rule 344 and NASD Rule 1050, research analysts must be registered with, qualified by, and approved by the Exchange and/or NASD. The Series 86/87 will serve as the qualification examination under NYSE Rule 344 and NASD Rule 1050.
As the term is defined in NYSE Rule 344.10, “research analyst” includes a member or employee who is primarily responsible for the preparation of the substance of a research report and/or whose name appears on such report. For purposes of NASD Rule 1050, a “research analyst” shall mean an associated person who is primarily responsible for the preparation of the substance of a research report or whose name appears on a research report.
Exam Organization
The qualification exam consists of two parts:
Part I (Series 86) – Analysis: This part of the examination consists of 100 multiple-choice questions addressing primarily fundamental analysis and valuation of equity securities. This part of the exam covers the first two critical job functions in the content outline:
1) Information and Data Collection
2) Analysis, Modeling, and Valuation
Part II (Series 87) – Regulatory Administration and Best Practices: This part of the examination consists of 50 multiple-choice questions addressing relevant federal and industry rules and regulations, including NYSE Rules, NASD Rules, the Securities Act of 1933 and the Securities
Exchange Act of 1934. This part of the exam covers the last two critical job functions in the content outline:
Exam Scheduling and Administration
For operational and delivery purposes, the Series 86/87 will be administered as two separate examinations: Series 86 for Part I and Series 87 for Part II.
Candidates should schedule their examinations at a Prometric Testing Center or a Pearson Professional Testing Center. Candidates are reminded that they must first pass the Series 7, 17, 37 or 38 before taking the Series 86 or 87.
Candidates may wish to schedule both examinations for the same day or take them on different days during the enrollment period.
Since multiple forms of the examination will be administered, the passing score will fluctuate moderately from examination to examination.
Any candidate who fails either part of the examination three times must wait 180 days before again taking the examination.
Qualification Designation
A candidate will be registered and qualified as a Research Analyst after passing the Series 7 (or
Series 17, 37 or 38), Series 86 and Series 87 (or the Series 87 only, if the candidate is exempt from Part I – Series 86).
If the candidate fails, he or she must only retake the part failed. A new Page 1 of the Form U4 must be submitted by the member or member organization to request another test administration.