A candidate for Supervisory Analyst registration has passed Level I of the Chartered Financial Analyst examination. What does FINRA Rule 1220(a)(14)(B) allow?FINRA Rule 1220(a)(14)(B). Outline: FINRA Series 16 Content Outline (2022), Part I, Function 1, task T1.
A draft report says the stock "cannot lose" and "will make every holder rich." Which content standard of FINRA Rule 2210(d)(1)(B) do these words break?FINRA Rule 2210(d)(1)(A) and (B). Outline: FINRA Series 16 Content Outline (2022), Part I, Function 1, task T4.
A draft report sets a 12-month price target but says nothing about how the target was reached or what could prevent it. What does FINRA Rule 2241(c)(1)(B) require?FINRA Rule 2241(c)(1)(B). Outline: FINRA Series 16 Content Outline (2022), Part I, Function 1, task T3.
A firm expects to seek investment banking business from a company its analyst covers. Over what future period does FINRA Rule 2241(c)(4)(C)(iii) require that expectation to be disclosed in a research report?FINRA Rule 2241(c)(4)(C). Outline: FINRA Series 16 Content Outline (2022), Part I, Function 1, task T5.
Show all 50 questions (46 more)
Regulations: approving research reports, continued
A firm has rated a stock for five years. What price chart must its research report on the stock carry under FINRA Rule 2241(c)(3)?FINRA Rule 2241(c)(3). Outline: FINRA Series 16 Content Outline (2022), Part I, Function 1, task T5.
A firm in an underwriting syndicate has never covered the issuer. It wants to publish its first report on the issuer during the registered offering and rely on Securities Act Rule 139(a)(1). Why does the safe harbor fail?Securities Act Rule 139(a)(1)(iii), 17 CFR 230.139. Outline: FINRA Series 16 Content Outline (2022), Part I, Function 1, task T2.
A firm is underwriting an issuer's offering of non-convertible debt only. Under Securities Act Rule 138, on which security of that issuer may the firm publish a research report without it being an offer of the debt?Securities Act Rule 138(a), 17 CFR 230.138. Outline: FINRA Series 16 Content Outline (2022), Part I, Function 1, task T2.
A firm uses buy, hold and sell ratings. Besides the share of all rated securities in each category, what must each rated report show under FINRA Rule 2241(c)(2)(B)?FINRA Rule 2241(c)(2)(A) and (B). Outline: FINRA Series 16 Content Outline (2022), Part I, Function 1, task T5.
A Supervisory Analyst may approve research communications that are not research reports under Rule 2241. What condition do FINRA Rules 1220(a)(14) and 2210(b)(1)(B) attach?FINRA Rule 1220(a)(14)(A); FINRA Rule 2210(b)(1)(B). Outline: FINRA Series 16 Content Outline (2022), Part I, Function 1, task T1.
An analyst emails 12 clients a written analysis of one company's stock, with enough information to base an investment decision on. Is it a research report under FINRA Rule 2241?FINRA Rule 2241(a)(11)(B)(i). Outline: FINRA Series 16 Content Outline (2022), Part I, Function 1, task T1.
At what level of ownership must a research report disclose that the firm or its affiliates beneficially own the subject company's common equity, under FINRA Rule 2241(c)(4)(F)?FINRA Rule 2241(c)(4)(F). Outline: FINRA Series 16 Content Outline (2022), Part I, Function 1, task T5.
During a quiet period, the subject company announces a significant acquisition. What does FINRA Rule 2241(b)(2)(I)(iii) require before the firm publishes a report on the effects of the news?FINRA Rule 2241(b)(2)(I)(iii). Outline: FINRA Series 16 Content Outline (2022), Part I, Function 1, task T2.
FINRA Rule 2210(d)(1)(F) bars communications that predict or project performance. Which item does the rule except?FINRA Rule 2210(d)(1)(F)(iii). Outline: FINRA Series 16 Content Outline (2022), Part I, Function 1, task T3.
FINRA Rule 2241(b)(2)(I) sets quiet periods of 10 days after an initial public offering and three days after a secondary offering. After the offering of which issuer do those quiet periods not apply?FINRA Rule 2241(b)(2)(I). Outline: FINRA Series 16 Content Outline (2022), Part I, Function 1, task T2.
Regulation M restricts a distribution participant's activity in a covered security during the restricted period. How does Rule 101(b)(1) treat research?Regulation M, Rule 101(b)(1), 17 CFR 242.101. Outline: FINRA Series 16 Content Outline (2022), Part I, Function 1, task T2.
What must the research analyst's certification in a research report attest under Regulation AC, Rule 501(a)(1)?Regulation AC, Rule 501(a), 17 CFR 242.501. Outline: FINRA Series 16 Content Outline (2022), Part I, Function 1, task T5.
Which communication is excluded from the definition of research report by FINRA Rule 2241(a)(11)(A)?FINRA Rule 2241(a)(11)(A). Outline: FINRA Series 16 Content Outline (2022), Part I, Function 1, task T1.
Regulations: analysts, appearances and distribution 8
A firm plans to send a rating change to its own trading desk an hour before clients who are entitled to the report receive it. Which rule's required policies does this break?FINRA Rule 2241(g). Outline: FINRA Series 16 Content Outline (2022), Part I, Function 2, task T9.
A member's proprietary desk sells its whole position in a stock on Monday because it has been told, in confidence, that the firm's analyst will downgrade the stock on Tuesday. What has the member done?FINRA Rule 5280(a). Outline: FINRA Series 16 Content Outline (2022), Part I, Function 2, task T9.
An analyst made public appearances during the first calendar quarter. By when must the firm make the record of her certifications that Regulation AC, Rule 502(a) requires?Regulation AC, Rule 502(a), 17 CFR 242.502. Outline: FINRA Series 16 Content Outline (2022), Part I, Function 2, task T7.
An analyst's most recent published report rates a stock a buy. Under the policies FINRA Rule 2241(b)(2)(J)(ii) requires, how may the analyst's own account trade the stock?FINRA Rule 2241(b)(2)(J)(ii). Outline: FINRA Series 16 Content Outline (2022), Part I, Function 2, task T6.
In a television interview an analyst recommends a stock that her husband owns. What must she disclose under FINRA Rule 2241(d)(1)(A)?FINRA Rule 2241(d)(1)(A). Outline: FINRA Series 16 Content Outline (2022), Part I, Function 2, task T7.
The investment banking department asks a research analyst to join its pitch to win an underwriting mandate. How do the policies required by FINRA Rule 2241(b)(2)(L) treat this?FINRA Rule 2241(b)(2)(L). Outline: FINRA Series 16 Content Outline (2022), Part I, Function 2, task T8.
On a call with one research analyst, an issuer's chief financial officer unintentionally reveals material nonpublic information. What does Regulation FD require of the issuer?Regulation FD, Rules 100(a) and 101(d), 17 CFR 243.100 and 243.101. Outline: FINRA Series 16 Content Outline (2022), Part I, Function 2, task T9.
The subject company asks to see a research report before it is published. For what purpose may the firm's policies allow that review under FINRA Rule 2241(b)(2)(N)?FINRA Rule 2241(b)(2)(N). Outline: FINRA Series 16 Content Outline (2022), Part I, Function 2, task T8.
Valuation: data and calculations 8
A balance sheet shows current assets of $600 million and current liabilities of $400 million. Which pair of figures should a report give?SEC, Beginners' Guide to Financial Statements; current ratio as defined in a public reference text (Wikipedia, 'Current ratio'). Outline: FINRA Series 16 Content Outline (2022), Part II, Function 1, task T2.
A balance sheet shows total liabilities of $450 million and shareholders' equity of $300 million. What debt-to-equity ratio results from the SEC guide's method?SEC, Beginners' Guide to Financial Statements, 'Debt-to-Equity Ratio'. Outline: FINRA Series 16 Content Outline (2022), Part II, Function 1, task T2.
A company has 250 million common shares outstanding and its stock closed at $32. What market capitalization should a report show?Market capitalization as defined in a public reference text (Wikipedia, 'Market capitalization'). Outline: FINRA Series 16 Content Outline (2022), Part II, Function 1, task T3.
A company has cash of $100 million, marketable securities of $50 million, receivables of $150 million, inventory of $300 million and current liabilities of $400 million. What is its quick (acid-test) ratio?Quick ratio as defined in a public reference text (Wikipedia, 'Quick ratio'). Outline: FINRA Series 16 Content Outline (2022), Part II, Function 1, task T2.
A company with 10 million shares priced at $90 splits its stock 3-for-1. What should a report show just after the split, other things equal?Stock split as described in a public reference text (Wikipedia, 'Stock split'). Outline: FINRA Series 16 Content Outline (2022), Part II, Function 1, task T3.
A report shows a stock price of $40 and a quarterly dividend of $0.30 a share. What indicated annual dividend yield should the report show?Dividend yield as defined in a public reference text (Wikipedia, 'Dividend yield'). Outline: FINRA Series 16 Content Outline (2022), Part II, Function 1, task T3.
Cost of sales for the year is $720 million and average inventory is $120 million. What inventory turnover should the report show, using the SEC guide's formula?SEC, Beginners' Guide to Financial Statements, 'Inventory Turnover Ratio'. Outline: FINRA Series 16 Content Outline (2022), Part II, Function 1, task T2.
Net income is $50 million, preferred dividends are $5 million and the weighted average number of common shares is 15 million. What basic earnings per share should the model show?Earnings per share as defined in a public reference text (Wikipedia, 'Earnings per share'). Outline: FINRA Series 16 Content Outline (2022), Part II, Function 1, task T2.
Valuation: reasonable basis for conclusions 17
A $1,000 convertible bond has a conversion ratio of 25 shares and the common stock trades at $36. What conversion (parity) value should the report give?Convertible bond in a public reference text (Wikipedia, 'Convertible bond'). Outline: FINRA Series 16 Content Outline (2022), Part II, Function 2, task T6.
A company earned net income of $100 million and paid common dividends of $40 million. What dividend payout ratio should back a claim that the dividend is secure?Dividend payout ratio in a public reference text (Wikipedia, 'Dividend payout ratio'). Outline: FINRA Series 16 Content Outline (2022), Part II, Function 2, task T6.
A company has a market capitalization of $500 million, debt of $200 million, cash of $50 million and EBITDA of $65 million, with no preferred stock. What EV/EBITDA multiple should the valuation table show?Enterprise value in a public reference text (Wikipedia, 'Enterprise value'). Outline: FINRA Series 16 Content Outline (2022), Part II, Function 2, task T6.
A company reports EBIT of $300 million and interest expense of $60 million. What interest coverage should the credit section of a report show?Times interest earned in a public reference text (Wikipedia, 'Times interest earned'). Outline: FINRA Series 16 Content Outline (2022), Part II, Function 2, task T6.
A company takes 60 days to sell inventory, 45 days to collect receivables and 30 days to pay suppliers. What cash conversion cycle should the working capital model show?Cash conversion cycle in a public reference text (Wikipedia, 'Cash conversion cycle'). Outline: FINRA Series 16 Content Outline (2022), Part II, Function 2, task T4.
A credit report says an investor "bought protection" on a company with a credit default swap. What does that mean?Credit default swap in a public reference text (Wikipedia, 'Credit default swap'). Outline: FINRA Series 16 Content Outline (2022), Part II, Function 2, task T6.
A fixed-income report compares a 10-year zero-coupon bond with a 10-year bond that pays a level coupon. What should it say about their Macaulay durations?Bond duration in a public reference text (Wikipedia, 'Bond duration'). Outline: FINRA Series 16 Content Outline (2022), Part II, Function 2, task T6.
A forecast raises sales by 10% and operating income by 25%. What degree of operating leverage does that imply?Operating leverage in a public reference text (Wikipedia, 'Operating leverage'). Outline: FINRA Series 16 Content Outline (2022), Part II, Function 2, task T5.
A model shows a net profit margin of 5%, asset turnover of 2.0 and an equity multiplier of 1.5. What return on equity follows from the DuPont breakdown?DuPont analysis in a public reference text (Wikipedia, 'DuPont analysis'). Outline: FINRA Series 16 Content Outline (2022), Part II, Function 2, task T4.
A report says the economy "passed its peak in March and reached its trough in November." In the NBER's chronology, what is the period between those two months?National Bureau of Economic Research, 'Business Cycle Dating'. Outline: FINRA Series 16 Content Outline (2022), Part II, Function 2, task T5.
A report's economic outlook rests on a tax cut and higher government spending. Which kind of policy is the analyst describing?Fiscal policy in a public reference text (Wikipedia, 'Fiscal policy'). Outline: FINRA Series 16 Content Outline (2022), Part II, Function 2, task T5.
A technical note says a stock has fallen to $48 three times and bounced each time on increased demand. What is the $48 level called?Support and resistance in a public reference text (Wikipedia, 'Support and resistance'). Outline: FINRA Series 16 Content Outline (2022), Part II, Function 2, task T6.
An analyst values a stock with the constant-growth dividend discount model: next year's dividend $2.00, cost of equity 9%, growth 4%. What value supports the price target?Dividend discount model in a public reference text (Wikipedia, 'Dividend discount model'). Outline: FINRA Series 16 Content Outline (2022), Part II, Function 2, task T7.
An interest rate forecast refers to the rate at which depository institutions lend reserve balances to each other overnight. Which rate is that?Board of Governors of the Federal Reserve System, 'Open Market Operations'. Outline: FINRA Series 16 Content Outline (2022), Part II, Function 2, task T5.
Income from operations is $120 million on net revenues of $800 million. What operating margin should support the analyst's profitability claim?SEC, Beginners' Guide to Financial Statements, 'Operating Margin'. Outline: FINRA Series 16 Content Outline (2022), Part II, Function 2, task T6.
The money supply averages $2,000 billion and nominal spending on output (price level times real output) is $10,000 billion. What velocity of money does the equation of exchange give?Equation of exchange in a public reference text (Wikipedia, 'Equation of exchange'). Outline: FINRA Series 16 Content Outline (2022), Part II, Function 2, task T5.
Two retailers are alike except that one uses FIFO and the other LIFO. In a period of rising prices, what should a reviewer expect of the FIFO company?FIFO and LIFO accounting in a public reference text (Wikipedia, 'FIFO and LIFO accounting'). Outline: FINRA Series 16 Content Outline (2022), Part II, Function 2, task T5.
How this list was compiled: Our own questions, written to the two parts and four functions of the Supervisory Analyst Qualification Examination (Series 16) Content Outline that FINRA publishes, copyright 2022 (https://www.finra.org/sites/default/files/Series_16_Outline.pdf, read 2026-10-14): Part I, Regulations, Function 1 (review and approve research analysts' communications) 34 of 50 items and Function 2 (liaison between the Research Department and other parties) 16; Part II, Valuation of Securities, Function 1 (accuracy, consistency and sources of data and calculations) 16 of 50 and Function 2 (a reasonable basis for the analyst's conclusions) 34. The bank of 50 holds 17, 8, 8 and 17. Every rule was read on 2026-10-14 in the public text the question names: FINRA Rules 1220, 2210, 2241 and 5280 on finra.org; Regulation AC, Regulation FD, Regulation M Rule 101 and Securities Act Rules 138 and 139 on ecfr.gov. The valuation questions rest on the SEC's Beginners' Guide to Financial Statements, Federal Reserve Board and National Bureau of Economic Research pages, and the definitions in the named articles of a public encyclopedia, and each calculation is worked from the figures in the question. Licence: Questions, choices and explanations are original work of this site.
How it works
This Series 16 practice test asks 50 questions: 25 on Part I, the research rules, and 25 on Part II, valuation of securities, split by function as FINRA's outline does. Unofficial: not affiliated with FINRA. Not investment advice.
Read the full guide
Two parts, four functions
FINRA gives each part 50 questions. Part I has 34 on approving research and 16 on liaison duties; Part II has 16 on data and calculations and 34 on the basis for conclusions. This bank halves them: 17, 8, 8 and 17.
Rules, then arithmetic
Part I answers cite FINRA Rules 2241, 2210, 1220 and 5280, Regulation AC, Regulation FD and Securities Act Rules 138 and 139. Part II answers work each ratio or model step by step from the figures in the question.
A half-length run
The timed exam asks all 50 in 105 minutes: half the 100 questions and half the 3 hours 30 minutes of the two real parts together.
Quiet periods run 10 days after an initial public offering and three days after a secondary offering.
A quick ratio leaves inventory out: cash, marketable securities and receivables over current liabilities.
Questions and answers
What is the Series 16 exam?
FINRA's Supervisory Analyst Exam. It qualifies a person to approve research reports on debt and equity securities and certain other research communications. FINRA lists it as given since January 1965.
How many questions are on the Series 16 exam?
100 multiple-choice questions in two separately administered parts. Part I, Regulations, has 50 questions in 1 hour 30 minutes. Part II, Valuation of Securities, has 50 questions in 2 hours.
What is the passing score for the Series 16?
72% on Part I and 74% on Part II, as FINRA's outline states. A candidate who fails one part retakes only that part.
Does the CFA exempt you from the Series 16?
From Part II only. FINRA's outline says a person who has passed the CFA Level I exam is exempt from Part II, the valuation part, and must include evidence of having passed it.
Do you need the SIE for the Series 16?
No. FINRA's page says the Series 16 does not have a corequisite exam. A candidate must be associated with and sponsored by a member firm, and Parts 1 and 2 together cost $325.