200+ Free Series 87 Practice Questions

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Question 1

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Under FINRA Rule 2241, what certification must a research analyst include in each research report?

Certification that the analyst has a Series 87 license

Certification that the views expressed accurately reflect the analyst's personal views

Certification that the analyst owns the securities covered

Certification that the firm guarantees the investment performance

to track

2026 Statistics

Key Facts: Series 87 Exam

70-75%

Pass Rate

Industry estimate

70%

Passing Score

35/50 questions

30-50 hrs

Study Time

Recommended

72%

Report Preparation

Largest section

$100

Exam Fee

FINRA

1h 45m

Exam Duration

FINRA

The Series 87 exam has an estimated 70-75% pass rate for prepared candidates. It requires 70% (35/50 questions) to pass in 1 hour 45 minutes. The exam covers two major functions: Research Report Preparation (72%) including disclosures and supervisory approval, and Dissemination of Information (28%) including public appearances. Prerequisites: SIE + Series 86 + firm sponsorship. Plan for 30-50 hours of study focusing on FINRA Rule 2241.

Sample Series 87 Practice Questions

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1Under FINRA Rule 2241, what certification must a research analyst include in each research report?

A.Certification that the analyst has a Series 87 license

B.Certification that the views expressed accurately reflect the analyst's personal views

C.Certification that the analyst owns the securities covered

D.Certification that the firm guarantees the investment performance

Explanation: FINRA Rule 2241 requires that research reports contain a certification that the views expressed in the report accurately reflect the research analyst's personal views about the subject securities and issuer. This ensures analysts take personal responsibility for their recommendations and cannot claim they were simply following firm directives.

2What is the required passing score for the FINRA Series 87 examination?

A.60%

B.65%

C.70%

D.75%

Explanation: The FINRA Series 87 examination has a passing score of 70%. The exam consists of 50 questions to be completed in 105 minutes. Candidates must pass Series 86 (Part I) before taking Series 87 (Part II) to obtain the Research Analyst qualification.

3Under FINRA Rule 2241, what must a research analyst disclose regarding their personal trading?

A.Only their annual trading volume

B.Whether they own securities of the companies they cover

C.Their entire trading history for the past 10 years

D.Only options positions

Explanation: Research analysts must disclose in research reports whether they own securities of the companies they cover. This disclosure is required at the time of publication and helps readers understand potential conflicts of interest that may influence the analyst's recommendations.

4What is the minimum qualification required to serve as a Supervisory Analyst who approves research reports?

A.Series 7 license only

B.Series 63 license only

C.Series 16 (Supervisory Analyst) license

D.MBA in Finance

Explanation: Under FINRA Rule 1220(b)(6), a Supervisory Analyst must hold a Series 16 (Supervisory Analyst) license to approve research reports. This specialized qualification ensures the supervisor has specific knowledge of research regulations, disclosure requirements, and supervisory responsibilities unique to research activities.

5According to FINRA Rule 2241, how long must firms retain records of research reports?

A.One year

B.Three years

C.Five years

D.Seven years

Explanation: FINRA Rule 2241 requires firms to maintain records of research reports for at least three years. This retention period ensures that regulatory examinations and compliance reviews can access historical research materials to assess compliance with disclosure and content requirements.

6What percentage of the Series 87 exam covers Function 4: Preparation of Research Reports?

A.50%

B.60%

C.72%

D.85%

Explanation: Function 4 (Preparation of Research Reports) comprises 72% of the Series 87 exam, or approximately 36 questions. The remaining 28% covers Function 5 (Dissemination and Marketing of Information). This distribution reflects the exam's focus on regulatory requirements for report preparation.

7What is the primary purpose of the internal review committee for rating changes?

A.To set compensation for research analysts

B.To review and approve rating changes before dissemination

C.To determine which companies the firm will cover

D.To negotiate fees with investment banking clients

Explanation: The internal review committee for rating changes reviews and approves rating changes before they are disseminated to the public. This committee ensures that rating changes are justified, comply with firm policies and regulatory requirements, and are not improperly influenced by investment banking or trading considerations.

8Under FINRA Rule 2241, what must be disclosed regarding the firm's trading activities?

A.Daily trading profits

B.Whether the firm makes a market in the subject company's securities

C.The firm's total trading volume

D.Individual trader compensation

Explanation: Research reports must disclose whether the firm makes a market in the subject company's securities. This disclosure alerts readers that the firm has a financial interest in the securities' trading volume, which could create a conflict of interest with the research recommendations.

9What information must be included in a research report regarding the analyst's compensation?

A.The analyst's exact salary

B.Whether compensation is related to specific banking transactions

C.The analyst's bonus percentage

D.Stock options granted to the analyst

Explanation: Research reports must disclose whether the analyst's compensation is related to specific investment banking transactions. This disclosure addresses concerns that analyst compensation tied to banking revenue could compromise the objectivity of research recommendations.

10What is the role of a Supervisory Analyst in the research report approval process?

A.Writing the research reports

B.Reviewing and approving reports before dissemination

C.Setting price targets for covered securities

D.Managing the firm's trading positions

Explanation: The Supervisory Analyst reviews and approves research reports before they are disseminated to ensure compliance with regulatory requirements, including disclosure obligations and content standards. This supervisory review is a critical control in the research production process.

About the Series 87 Exam

The Series 87 is Part II of the Research Analyst qualification, covering regulatory administration and best practices. It focuses on preparation of research reports (72%), required disclosures, supervisory approval, trading restrictions, and dissemination of information (28%).

Questions

50 scored questions

Time Limit

1 hour 45 minutes

Passing Score

70%

Exam Fee

$100 (FINRA)

Series 87 Exam Content Outline

72%

Preparation of Research Reports

Required disclosures, analyst certifications, firm disclosures, conflicts of interest, supervisory analyst review, rating changes, and approval procedures

28%

Dissemination and Marketing of Information

Public appearances, oral disclosures, client meetings, information dissemination, responding to inquiries, and sales force feedback

How to Pass the Series 87 Exam

What You Need to Know

Passing score: 70%
Exam length: 50 questions
Time limit: 1 hour 45 minutes
Exam fee: $100

Keys to Passing

Complete 500+ practice questions
Score 80%+ consistently before scheduling
Focus on highest-weighted sections
Use our AI tutor for tough concepts

Series 87 Study Tips from Top Performers

1Master FINRA Rule 2241 - this is the foundation of the entire exam

2Study required disclosures thoroughly - analyst certifications, firm disclosures, conflicts of interest, compensation

3Understand supervisory analyst requirements - Series 16 qualification, review procedures, approval authority

4Learn trading restrictions - quiet periods (40 days for IPOs, 10 days for secondary offerings), post-publication restrictions

5Know rating change procedures - internal review committees, documentation requirements

6Study public appearance requirements - required oral disclosures, media appearances

7Understand recordkeeping requirements - 3-year retention, WORM format for electronic records

8Know compensation disclosure requirements - how analysts are paid, investment banking relationships

9Review information barriers between research and investment banking

10Practice with scenario-based questions on supervisory approval procedures

Frequently Asked Questions

What is the Series 87 exam?

The Series 87 is Part II of the Research Analyst Qualification Examination administered by FINRA. It covers regulatory administration and best practices for research analysts, including preparation of research reports (72%), required disclosures, supervisory approval, trading restrictions, and dissemination of information (28%). You must pass Series 86 (Part I) before taking Series 87.

What is the Series 87 pass rate?

The Series 87 exam has an estimated pass rate of 70-75% for prepared test-takers. The exam has 50 scored questions plus 5 unscored pretest questions with a 70% passing score (35 correct answers), taken over 1 hour 45 minutes. Those with strong understanding of FINRA Rule 2241 and research report requirements tend to perform well.

What are the prerequisites for the Series 87?

The Series 87 requires passing the SIE (Securities Industry Essentials) exam and Series 86 (Part I - Analysis), plus firm sponsorship. You must be associated with a FINRA member firm that files a Form U4 on your behalf. Series 87 cannot be taken until Series 86 is passed.

How long should I study for Series 87?

Plan for 30-50 hours of study over 3-5 weeks. Focus on: FINRA Rule 2241 (Research Analysts and Research Reports), required disclosures (analyst certifications, firm disclosures, conflicts), supervisory approval procedures, trading restrictions (quiet periods, post-publication restrictions), and dissemination requirements. Complete at least 200 practice questions and score 80%+ consistently before scheduling.

What are the main topics on the Series 87?

The main topics are: Preparation of Research Reports (72%) including required disclosures (analyst certifications, firm disclosures, conflicts of interest, compensation), supervisory analyst review (Series 16), rating changes, initiation/termination of coverage, and approval procedures; and Dissemination and Marketing of Information (28%) including public appearances, oral disclosures, client meetings, information dissemination methods, and responding to inquiries.

What is FINRA Rule 2241 and why is it important for Series 87?

FINRA Rule 2241 governs Research Analysts and Research Reports. For the Series 87, you must understand: required disclosures in research reports (investment banking relationships, analyst holdings, compensation); supervisory analyst review requirements; quiet periods around IPOs (40 days) and secondary offerings (10 days); trading restrictions for analysts and firms; and public appearance requirements. This is the most heavily tested rule on the exam.

What is the difference between Series 86 and Series 87?

Series 86 (Part I) covers analysis and valuation including financial modeling, data collection, and company analysis. Series 87 (Part II) covers regulatory administration and best practices including research report preparation, disclosures, supervisory approval, and information dissemination. You must pass both exams plus the SIE to be registered as a Research Analyst.