A broker-dealer files Form BDW to withdraw from registration. When does the withdrawal ordinarily become effective?SEA Rule 15b6-1, 17 CFR 240.15b6-1. Outline: FINRA Series 23 Content Outline (2023), Function 1, task 1.1.
A firm's letterhead says it is registered with the SEC. What may it not suggest by that under SEA Rule 15c1-3?SEA Rule 15c1-3, 17 CFR 240.15c1-3. Outline: FINRA Series 23 Content Outline (2023), Function 1, task 1.1.
A firm's new hire has not yet met FINRA's qualification standards. What does SEA Rule 15b7-1 bar the firm from doing?SEA Rule 15b7-1, 17 CFR 240.15b7-1. Outline: FINRA Series 23 Content Outline (2023), Function 1, task 1.2.
Which registration lets a person qualify as a General Securities Principal by passing the Sales Supervisor Module in place of the full principal exam?FINRA Rule 1220(a)(2). Outline: FINRA Series 23 Content Outline (2023), Function 1, task 1.2.
Show all 54 questions (50 more)
General broker-dealer activities 13
A firm extends margin credit to a customer. How often must it send the statement of credit charges that SEA Rule 10b-16 requires?SEA Rule 10b-16, 17 CFR 240.10b-16. Outline: FINRA Series 23 Content Outline (2023), Function 2, task 2.7.
A firm retires its compliance and supervisory procedures manual and puts a new one in use. How long must it keep the old manual under SEA Rule 17a-4(e)(7)?SEA Rule 17a-4(e)(7), 17 CFR 240.17a-4. Outline: FINRA Series 23 Content Outline (2023), Function 2, task 2.1.
A member that does investment banking must report its internal investigations of suspect trades to FINRA. How soon after each calendar quarter?FINRA Rule 3110(d). Outline: FINRA Series 23 Content Outline (2023), Function 2, task 2.2.
A non-affiliate holds restricted stock of an issuer that files reports under the Exchange Act. What is the shortest holding period before a Rule 144 resale?Securities Act Rule 144(d), 17 CFR 230.144. Outline: FINRA Series 23 Content Outline (2023), Function 2, task 2.4.
A person who is not the issuer and not a director or officer adopts a Rule 10b5-1 trading plan. How long is the cooling-off period before trades may begin?SEA Rule 10b5-1(c), 17 CFR 240.10b5-1. Outline: FINRA Series 23 Content Outline (2023), Function 2, task 2.2.
A principal's morning computation shows the firm's net capital is below the required minimum. When is notice due under SEA Rule 17a-11?SEA Rule 17a-11(a), 17 CFR 240.17a-11. Outline: FINRA Series 23 Content Outline (2023), Function 2, task 2.7.
An issuer buys back its own common stock under the Rule 10b-18 safe harbor. Through how many broker-dealers may it buy on a single day?SEA Rule 10b-18(b)(1), 17 CFR 240.10b-18. Outline: FINRA Series 23 Content Outline (2023), Function 2, task 2.2.
FINRA designates a reporting settlement date for short interest. By when must a member's report be in?FINRA Rule 4560. Outline: FINRA Series 23 Content Outline (2023), Function 2, task 2.7.
The Rule 3130 certification says the chief executive officer met with the chief compliance officer. In what period?FINRA Rule 3130(c). Outline: FINRA Series 23 Content Outline (2023), Function 2, task 2.1.
SEC staff ask a firm for records it must preserve under SEA Rule 17a-4. What does paragraph (j) of the rule require?SEA Rule 17a-4(j), 17 CFR 240.17a-4. Outline: FINRA Series 23 Content Outline (2023), Function 2, task 2.5.
Some of a firm's records must be accepted or approved by a principal. What record does SEA Rule 17a-3(a)(22) require the firm to make about that?SEA Rule 17a-3(a)(22), 17 CFR 240.17a-3. Outline: FINRA Series 23 Content Outline (2023), Function 2, task 2.1.
Under the Rule 10b-18 safe harbor, what daily volume limit applies to an issuer's repurchases?SEA Rule 10b-18(b)(4), 17 CFR 240.10b-18. Outline: FINRA Series 23 Content Outline (2023), Function 2, task 2.2.
Who signs the annual certification of a member's compliance and supervisory processes under FINRA Rule 3130?FINRA Rule 3130(b). Outline: FINRA Series 23 Content Outline (2023), Function 2, task 2.1.
Retail and institutional customers 6
A firm amends its Form CRS. Within what time must it communicate the changes to retail investors who are existing customers?SEA Rule 17a-14(c), 17 CFR 240.17a-14. Outline: FINRA Series 23 Content Outline (2023), Function 3, task 3.3.
A firm detects a suspicious $12,000 transaction. How long does it have to file a suspicious activity report, and may it tell the customer?31 CFR 1023.320. Outline: FINRA Series 23 Content Outline (2023), Function 3, task 3.1.
A representative with no prior relationship wants to cold-call a prospect at home. During which hours, local to the prospect, does FINRA Rule 3230 allow the call?FINRA Rule 3230(a). Outline: FINRA Series 23 Content Outline (2023), Function 3, task 3.2.
A retail customer opens an account. Within what time must the firm first furnish her a copy of the account record under SEA Rule 17a-3(a)(17)?SEA Rule 17a-3(a)(17), 17 CFR 240.17a-3. Outline: FINRA Series 23 Content Outline (2023), Function 3, task 3.1.
How does Regulation Best Interest define a conflict of interest?SEA Rule 15l-1(b)(3), 17 CFR 240.15l-1. Outline: FINRA Series 23 Content Outline (2023), Function 3, task 3.3.
What does Regulation S-ID require of a broker-dealer that offers covered accounts?Regulation S-ID, 17 CFR 248.201. Outline: FINRA Series 23 Content Outline (2023), Function 3, task 3.1.
Trading and market making 16
A broker-dealer prepares its quarterly report on the routing of customers' non-directed orders. How soon after the quarter ends must the report be public under Rule 606(a)(2) of Regulation NMS?Regulation NMS, 17 CFR 242.606(a). Outline: FINRA Series 23 Content Outline (2023), Function 4, task 4.3.
A clearing firm misses the close-out date for a fail to deliver in a stock. Until its close-out purchase has cleared and settled, what does Rule 204(b) of Regulation SHO require before it accepts another short sale order in that stock?Regulation SHO, 17 CFR 242.204(b). Outline: FINRA Series 23 Content Outline (2023), Function 4, task 4.1.
A customer owns 1,000 shares of a stock but settles a sale of it with shares borrowed for her account. How does Rule 200(a) of Regulation SHO class the sale?Regulation SHO, 17 CFR 242.200(a). Outline: FINRA Series 23 Content Outline (2023), Function 4, task 4.1.
A firm gives a hedge fund customer direct market access. Who must control the risk management controls that SEA Rule 15c3-5 requires?SEA Rule 15c3-5(d), 17 CFR 240.15c3-5. Outline: FINRA Series 23 Content Outline (2023), Function 4, task 4.1.
A firm sends a new customer the penny stock risk disclosure document. How long must it wait before effecting a penny stock trade for the customer?SEA Rule 15g-2, 17 CFR 240.15g-2. Outline: FINRA Series 23 Content Outline (2023), Function 4, task 4.3.
A fund sold short during the Rule 105 restricted period, then made a bona fide purchase equal to the whole short sale. By when must that purchase have been made for the fund to buy in the offering?Regulation M, 17 CFR 242.105(b). Outline: FINRA Series 23 Content Outline (2023), Function 4, task 4.3.
A trader learns of a customer's imminent block order and buys options on the same stock for the firm's account. When does the front running ban of FINRA Rule 5270 end?FINRA Rule 5270. Outline: FINRA Series 23 Content Outline (2023), Function 4, task 4.1.
Another broker-dealer presents a round-lot order against a market maker's published quotation in an NMS stock. What is the market maker's duty under Rule 602 of Regulation NMS?Regulation NMS, 17 CFR 242.602(b). Outline: FINRA Series 23 Content Outline (2023), Function 4, task 4.3.
Before a broker-dealer publishes a quotation for an over-the-counter security in a quotation medium, what must SEA Rule 15c2-11 find in its records?SEA Rule 15c2-11, 17 CFR 240.15c2-11. Outline: FINRA Series 23 Content Outline (2023), Function 4, task 4.1.
For how long must the aggregate fails to deliver in an equity security persist before Rule 203(c)(6) of Regulation SHO makes it a threshold security?Regulation SHO, 17 CFR 242.203(c)(6). Outline: FINRA Series 23 Content Outline (2023), Function 4, task 4.1.
For what period is each report on the execution of covered orders in NMS stocks made available under Rule 605 of Regulation NMS?Regulation NMS, 17 CFR 242.605(a). Outline: FINRA Series 23 Content Outline (2023), Function 4, task 4.3.
How often must the chief executive officer certify a firm's market access risk controls under SEA Rule 15c3-5(e)?SEA Rule 15c3-5(e), 17 CFR 240.15c3-5. Outline: FINRA Series 23 Content Outline (2023), Function 4, task 4.1.
Leaving aside the other exclusions, below what price per share is an unlisted equity security a penny stock under SEA Rule 3a51-1?SEA Rule 3a51-1, 17 CFR 240.3a51-1. Outline: FINRA Series 23 Content Outline (2023), Function 4, task 4.3.
Securities sold in a firm commitment offering may settle on the second business day after the contract, not the first, when they are priced after what time under SEA Rule 15c6-1(c)?SEA Rule 15c6-1(c), 17 CFR 240.15c6-1. Outline: FINRA Series 23 Content Outline (2023), Function 4, task 4.2.
Two members trade an NMS stock over the counter. Which of them reports the trade to the FINRA/Nasdaq Trade Reporting Facility?FINRA Rule 6380A(b). Outline: FINRA Series 23 Content Outline (2023), Function 4, task 4.3.
Which customer limit order is a market maker NOT required to display under Rule 604 of Regulation NMS?Regulation NMS, 17 CFR 242.604(b). Outline: FINRA Series 23 Content Outline (2023), Function 4, task 4.3.
Investment banking and research 15
A customer wants to enter a market order to buy shares of a new issue before it starts trading in the secondary market. What does FINRA Rule 5131(d) say?FINRA Rule 5131(d). Outline: FINRA Series 23 Content Outline (2023), Function 5, task 5.1.
A member sells a private placement of its own securities. What share of the offering proceeds must go to business purposes under FINRA Rule 5122?FINRA Rule 5122(b). Outline: FINRA Series 23 Content Outline (2023), Function 5, task 5.1.
A registered dealer wants to buy for its own account under Rule 144A. How much in securities of unaffiliated issuers must it own and invest on a discretionary basis to be a qualified institutional buyer?Securities Act Rule 144A, 17 CFR 230.144A. Outline: FINRA Series 23 Content Outline (2023), Function 5, task 5.1.
A stock in distribution has an ADTV value of $400,000 and its issuer has a public float of $60 million. When does the Regulation M restricted period begin?Regulation M, 17 CFR 242.100 and 242.101. Outline: FINRA Series 23 Content Outline (2023), Function 5, task 5.1.
An analyst sends sections of a draft research report to the subject company to check facts. What may those sections NOT contain?FINRA Rule 2241(b)(2)(N) and Supplementary Material .05. Outline: FINRA Series 23 Content Outline (2023), Function 5, task 5.3.
An independent bid stands at the same price as a syndicate's stabilizing bid. Which bid has priority under Rule 104(c) of Regulation M?Regulation M, 17 CFR 242.104(c). Outline: FINRA Series 23 Content Outline (2023), Function 5, task 5.1.
An investor's purchase takes it past 5 percent of a class of registered voting equity. By when is the Schedule 13D due under SEA Rule 13d-1(a)?SEA Rule 13d-1(a), 17 CFR 240.13d-1. Outline: FINRA Series 23 Content Outline (2023), Function 5, task 5.1.
An issuer ends its engagement of an underwriter before any offering is completed. Under FINRA Rule 5110, a written termination fee may be owed only if a transaction closes within what time?FINRA Rule 5110(g). Outline: FINRA Series 23 Content Outline (2023), Function 5, task 5.1.
An issuer will use 8 percent of its net offering proceeds to repay a loan from the lead underwriter. How does FINRA Rule 5121 class the offering?FINRA Rule 5121. Outline: FINRA Series 23 Content Outline (2023), Function 5, task 5.1.
An underwriting agreement gives the member a right of first refusal on the issuer's future offerings. Beyond what length does FINRA Rule 5110 treat the right as unreasonable?FINRA Rule 5110(g). Outline: FINRA Series 23 Content Outline (2023), Function 5, task 5.1.
At what level of ownership must a research report disclose that the member or its affiliates own the subject company's common equity?FINRA Rule 2241(c). Outline: FINRA Series 23 Content Outline (2023), Function 5, task 5.3.
The book-running manager plans to release officers' shares from an IPO lock-up early. What notice does FINRA Rule 5131(d) require?FINRA Rule 5131(d). Outline: FINRA Series 23 Content Outline (2023), Function 5, task 5.1.
By when must a syndicate manager make final settlement of the syndicate accounts under FINRA Rule 11880?FINRA Rule 11880. Outline: FINRA Series 23 Content Outline (2023), Function 5, task 5.1.
What is the shortest time a tender offer may be held open under SEA Rule 14e-1?SEA Rule 14e-1, 17 CFR 240.14e-1. Outline: FINRA Series 23 Content Outline (2023), Function 5, task 5.1.
What must a research analyst certify in a research report under Regulation AC?Regulation AC, 17 CFR 242.501. Outline: FINRA Series 23 Content Outline (2023), Function 5, task 5.3.
How this list was compiled: Our own questions, written to FINRA's General Securities Principal Qualification Examination, Sales Supervisor Module (Series 23) Content Outline, marked 2023 (https://www.finra.org/sites/default/files/Series_23_Outline.pdf, read 2026-10-14): Function 1 supervision of registration of the broker-dealer and personnel management activities 6 of 100 questions, Function 2 supervision of general broker-dealer activities 26, Function 3 supervision of retail and institutional customer-related activities 12, Function 4 supervision of trading and market making activities 28, Function 5 supervision of investment banking and research 28. The bank holds 4, 13, 6, 16 and 15. Every fact was read on 2026-10-14 in the public text the question names: SEC rules, Regulation SHO, Regulation NMS, Regulation M, Regulation AC, Regulation S-ID, Securities Act Rules 144 and 144A and the Treasury's suspicious activity reporting rule on ecfr.gov, and FINRA Rules 1220, 2241, 3110, 3130, 3230, 4560, 5110, 5121, 5122, 5131, 5270, 6380A and 11880 on finra.org. Licence: Questions, choices and explanations are original work of this site.
How it works
This Series 23 practice test asks 54 questions of our own for the General Securities Principal exam's Sales Supervisor Module: firm conduct, trading, investment banking and research. This site is unofficial and has no affiliation with FINRA. Not investment advice.
Read the full guide
How the 100 questions divide
FINRA's outline gives the Series 23 100 questions: 6 on registration and personnel, 26 on general broker-dealer activities, 12 on customer-related activities, 28 on trading and market making, and 28 on investment banking and research. The practice bank follows with 4, 13, 6, 16 and 15.
What a sales supervisor has not been asked
Trading and investment banking carry 56 of the 100 questions. The bank leans on Regulation SHO, Regulation NMS, Regulation M, the penny stock rules and FINRA Rules 5110, 5121, 5131 and 2241.
A threshold security has fails to deliver of 10,000 shares or more, and at least 0.5 percent of the issue, for five consecutive settlement days.
A tender offer stays open at least twenty business days, and ten more business days after a change in the price offered.
Questions and answers
What is the Series 23 license for?
It qualifies a General Securities Sales Supervisor as a General Securities Principal. FINRA describes the Sales Supervisor Module as an alternative to taking the full Series 24 principal exam.
How long is the Series 23 exam?
Two and a half hours for 100 multiple-choice questions. The outline says a wrong answer carries no penalty, so candidates should attempt every question.
What score do you need to pass the Series 23?
70 percent of the questions answered correctly. The outline calls the passing score an absolute standard, independent of how other candidates perform.
Who can take the Series 23 instead of the Series 24?
A candidate who has passed the SIE, the Series 7 and the Series 9 and 10, which together make the Sales Supervisor registration, and whom a FINRA member firm sponsors.
What does the Series 23 exam cost?
The fee on FINRA's Series 23 page is $135. The sponsoring firm requests the General Securities Principal position on the candidate's Form U4.