Series 57 Practice Test

Unofficial Series 57 practice for the Securities Trader Representative exam: 50 questions on short sales, Regulation NMS and trade reporting.

A stock's price moves to its Limit Up-Limit Down price band and does not move back inside the bands within 15 seconds. What happens next?

Pick an answer, then press Check answer. Then you see Correct or Not quite, with the reason. Keys: A to D pick, Enter checks.

Print covers the next 50 questions. Share this set copies a link to the same questions in the same order.

Exam mode: 50 questions, 105 minutes.

More options

Unofficial practice questions, not affiliated with FINRA. Bank checked October 9, 2026.

The real exam, as FINRA describes it

Questions
50
Time limit
105 minutes
Fee
$105
Passing score
70, on a scale set by equating.
On the day
55 questions: 50 scored and 5 unscored pretest.
Corequisite
The Securities Industry Essentials (SIE) exam.
Who may sit
A person who is associated with a member firm of FINRA or of another self-regulatory organization, and whom that firm sponsors.

Checked October 9, 2026 against FINRA's Series 57 page and Series 57 Content Outline. Rules change, so confirm with the agency itself before your test.

FINRA's Series 57 page and content outline

Next step SIE practice testSeries 7 practice questions

All 50 questions

General trading practices 16

  • A broker-dealer gives a hedge fund sponsored access to an exchange under the firm's market participant identifier. Under SEC Rule 15c3-5, who must have direct and exclusive control of the risk management controls? SEC Rule 15c3-5, 17 CFR 240.15c3-5, paragraph (d). Outline: FINRA Series 57 Content Outline, Function 1.1.3, Market Access.
  • A dealer publishes a firm quotation but, when another firm tries to trade on it, refuses to buy or sell at that price. What does FINRA Rule 5220 call this conduct? FINRA Rule 5220, Offers at Stated Prices, Supplementary Material .01. Outline: FINRA Series 57 Content Outline, Function 1.1.7, Disseminating Quotes and Trade Advertisements.
  • A firm's trading desk learns that its research department will publish a buy rating on a stock tomorrow. What does FINRA Rule 5280 forbid the firm to do on that knowledge? FINRA Rule 5280, Trading Ahead of Research Reports, paragraph (a). Outline: FINRA Series 57 Content Outline, Function 1.1.6, Prohibited Activities.
  • A market maker calls a trader at a competing firm and asks him to widen his quote in a stock. How does FINRA Rule 5240 treat the request? FINRA Rule 5240, Anti-Intimidation/Coordination, paragraph (a)(2). Outline: FINRA Series 57 Content Outline, Function 1.1.6, Prohibited Activities.
Show all 50 questions (46 more)

General trading practices, continued

  • A stock's price moves to its Limit Up-Limit Down price band and does not move back inside the bands within 15 seconds. What happens next? Investor.gov (SEC), Stock Market Circuit Breakers, Limit Up-Limit Down. Outline: FINRA Series 57 Content Outline, Function 1.1.7, Disseminating Quotes and Trade Advertisements.
  • A trader breaks one customer order into many small orders mainly to collect more exchange rebates for the firm. Which FINRA rule does this violate? FINRA Rule 5290, Order Entry and Execution Practices. Outline: FINRA Series 57 Content Outline, Function 1.1.6, Prohibited Activities.
  • A trader enters a limit order that shows only part of its quantity and keeps the rest undisplayed but available to trade. Which order type is this? Cboe Exchange, Inc. Rule Book, Rule 5.6(c), Reserve Order. Outline: FINRA Series 57 Content Outline, Function 1.1.2, Understanding Order Types.
  • A trading halt is in effect in a stock. Under FINRA Rule 5260, which of these may a member publish in that stock during the halt? FINRA Rule 5260, Prohibition on Transactions, Publication of Quotations, or Publication of Indications of Interest During Trading Halts, paragraph (a). Outline: FINRA Series 57 Content Outline, Function 1.1.7, Disseminating Quotes and Trade Advertisements.
  • An issuer offers a member firm a fee to act as a market maker in the issuer's stock. What does FINRA Rule 5250 require of the member? FINRA Rule 5250, Payments for Market Making, paragraph (a). Outline: FINRA Series 57 Content Outline, Function 1.1.1, Achieving Market Making Status.
  • An order must be filled whole the moment the system gets it, or else it is cancelled. Which time-in-force instruction is this? Cboe Exchange, Inc. Rule Book, Rule 5.6(d), Fill-or-Kill. Outline: FINRA Series 57 Content Outline, Function 1.1.2, Understanding Order Types.
  • An over-the-counter trade in a listed stock is executed at 6:15 p.m. Eastern Time. The reference price is $20. Under the numerical guidelines of FINRA Rule 11892, the trade is clearly erroneous if its price is away from the reference price by at least: FINRA Rule 11892, Clearly Erroneous Transactions in Exchange-Listed Securities, paragraph (b)(2)(A). Outline: FINRA Series 57 Content Outline, Function 1.1.4, Clearly Erroneous Transactions.
  • How long before it begins operating must an alternative trading system file its initial operation report on Form ATS? SEC Regulation ATS, Rule 301, 17 CFR 242.301, paragraph (b)(2)(i). Outline: FINRA Series 57 Content Outline, Function 1.1.5, Display, Execution and Trading Systems.
  • Under FINRA Rule 5270, when has information about a customer's block transaction been made publicly available? FINRA Rule 5270, Front Running of Block Transactions, Supplementary Material .02. Outline: FINRA Series 57 Content Outline, Function 1.1.6, Prohibited Activities.
  • Under SEC Rule 15c3-5, what must a broker-dealer's financial risk controls do with an order that would exceed a pre-set credit or capital threshold? SEC Rule 15c3-5, 17 CFR 240.15c3-5, paragraph (c)(1)(i). Outline: FINRA Series 57 Content Outline, Function 1.1.3, Market Access.
  • Under Section 3(a)(38) of the Exchange Act, which dealer is a market maker in a security? Securities Exchange Act of 1934, Section 3(a)(38), 15 U.S.C. 78c. Outline: FINRA Series 57 Content Outline, Function 1.1.1, Achieving Market Making Status.
  • What minimum net capital must a dealer have and maintain to be a Qualified Block Positioner under SEC Rule 3b-8? SEC Rule 3b-8, 17 CFR 240.3b-8, paragraph (c). Outline: FINRA Series 57 Content Outline, Function 1.1.1, Achieving Market Making Status.

Offerings, OTC stocks, options and short sales 15

  • A clearing agency participant has a fail to deliver position that resulted from a short sale. Under Rule 204(a) of Regulation SHO, by when must it close out the position? SEC Regulation SHO, Rule 204, 17 CFR 242.204, paragraph (a). Outline: FINRA Series 57 Content Outline, Function 1.2.4, Handling and Executing Short Sales.
  • A firm is assigned an exercise notice on a short option position held in its customers' accounts. Under Cboe Rule 6.21, how may it choose which customer is assigned? Cboe Exchange, Inc. Rule Book, Rule 6.21(a). Outline: FINRA Series 57 Content Outline, Function 1.2.3, Options Trading.
  • A listed stock closed at $50.00 yesterday and trades down to $44.90 at 11:00 a.m. today. Under Rule 201 of Regulation SHO, for how long are short sales at or below the national best bid then prevented? SEC Regulation SHO, Rule 201, 17 CFR 242.201, paragraph (b)(1). Outline: FINRA Series 57 Content Outline, Function 1.2.4, Handling and Executing Short Sales.
  • A managing underwriter may reclaim a selling concession from a syndicate member when the shares that member sold are bought back in syndicate covering transactions. What is this arrangement called? SEC Regulation M, Rule 100, 17 CFR 242.100, definition of penalty bid. Outline: FINRA Series 57 Content Outline, Function 1.2.1, IPOs, Secondary Offerings and Safe Harbor.
  • A member enters a bid of $0.15 for an OTC equity security in a real-time inter-dealer quotation system. Under FINRA Rule 6433, what is the minimum size it must enter and honor? FINRA Rule 6433, Minimum Quotation Size Requirements for OTC Equity Securities. Outline: FINRA Series 57 Content Outline, Function 1.2.2, Non-listed and Penny Stocks.
  • A member wants to initiate quotations in a non-exchange-listed stock and files the required form with FINRA. Under FINRA Rule 6432, what must happen before it quotes? FINRA Rule 6432, Compliance with the Information Requirements of SEA Rule 15c2-11, paragraphs (a) and (e). Outline: FINRA Series 57 Content Outline, Function 1.2.2, Non-listed and Penny Stocks.
  • A stock in a distribution has an ADTV value of $60,000. Under Regulation M, how long before the offering price is determined does the restricted period begin for a distribution participant already in the deal? SEC Regulation M, Rule 100, 17 CFR 242.100, definition of restricted period. Outline: FINRA Series 57 Content Outline, Function 1.2.1, IPOs, Secondary Offerings and Safe Harbor.
  • A stock is listing on an exchange today in its initial public offering. Under FINRA Rule 6130, when may a member first execute an over-the-counter trade in it? FINRA Rule 6130, Transactions Related to Initial Public Offerings, paragraph (a). Outline: FINRA Series 57 Content Outline, Function 1.2.1, IPOs, Secondary Offerings and Safe Harbor.
  • An issuer's stock has an ADTV value of $400,000. Besides the opening purchase, in which part of the primary trading session must the issuer make no repurchase to stay within the Rule 10b-18 safe harbor? SEC Rule 10b-18, 17 CFR 240.10b-18, paragraph (b)(2). Outline: FINRA Series 57 Content Outline, Function 1.2.1, IPOs, Secondary Offerings and Safe Harbor.
  • For the position limit of Cboe Rule 8.30, long calls are on the same side of the market as which other position in the same underlying security? Cboe Exchange, Inc. Rule Book, Rule 8.30. Outline: FINRA Series 57 Content Outline, Function 1.2.3, Options Trading.
  • For what purpose alone does Rule 104 of Regulation M allow a stabilizing bid? SEC Regulation M, Rule 104, 17 CFR 242.104, paragraph (b). Outline: FINRA Series 57 Content Outline, Function 1.2.1, IPOs, Secondary Offerings and Safe Harbor.
  • How must a broker-dealer mark every sell order in an equity security under Rule 200(g) of Regulation SHO? SEC Regulation SHO, Rule 200, 17 CFR 242.200, paragraph (g). Outline: FINRA Series 57 Content Outline, Function 1.2.4, Handling and Executing Short Sales.
  • In one inter-dealer quotation system an OTC equity security is offered at $2.10. A member then displays a bid of $2.12 in the same system. What is the member's bid under FINRA Rule 6437? FINRA Rule 6437, Prohibition from Locking or Crossing Quotations in OTC Equity Securities, paragraph (b)(1). Outline: FINRA Series 57 Content Outline, Function 1.2.2, Non-listed and Penny Stocks.
  • On each day of the restricted period, a passive market maker's net purchases may not exceed which limit under Rule 103 of Regulation M? SEC Regulation M, Rule 103, 17 CFR 242.103, paragraph (b)(2). Outline: FINRA Series 57 Content Outline, Function 1.2.1, IPOs, Secondary Offerings and Safe Harbor.
  • Under SEC Rule 3a51-1, an equity security that is not otherwise excluded is NOT a penny stock if it has a price of at least: SEC Rule 3a51-1, 17 CFR 240.3a51-1, paragraph (d). Outline: FINRA Series 57 Content Outline, Function 1.2.2, Non-listed and Penny Stocks.

Customer orders and Regulation NMS 10

  • A customer has an open good-til-cancelled order to buy a stock at $30.00, not marked "Do Not Reduce." The stock is quoted ex-dividend for a cash dividend of $0.50. Under FINRA Rule 5330, what is the order's price now? FINRA Rule 5330, Adjustment of Orders, paragraph (a)(1). Outline: FINRA Series 57 Content Outline, Function 1.3.1, Meeting Obligations to Customers Regarding Orders.
  • A firm routes a limit order marked as an intermarket sweep order to one trading center. What else must it route at the same time? SEC Regulation NMS, Rule 600, 17 CFR 242.600, definition of intermarket sweep order. Outline: FINRA Series 57 Content Outline, Function 1.3.3, Regulation NMS.
  • A firm sends a customer's order through a third party that adds cost, although the firm could have traded directly with the best market. Which practice does FINRA Rule 5310 prohibit here? FINRA Rule 5310, Best Execution and Interpositioning, paragraph (a)(2). Outline: FINRA Series 57 Content Outline, Function 1.3.1, Meeting Obligations to Customers Regarding Orders.
  • A market maker wants to fill a retail customer's order on a "net" basis. Under FINRA Rule 2124, what consent does it need from this non-institutional customer? FINRA Rule 2124, Net Transactions with Customers, paragraph (b). Outline: FINRA Series 57 Content Outline, Function 1.3.1, Meeting Obligations to Customers Regarding Orders.
  • A member holds a customer's unexecuted limit order to buy 500 shares of a stock at $25.00. The member then buys the stock for its own account at $25.00. What must it do under FINRA Rule 5320? FINRA Rule 5320, Prohibition Against Trading Ahead of Customer Orders, paragraph (a). Outline: FINRA Series 57 Content Outline, Function 1.3.2, Identifying and Avoiding Prohibited Practices.
  • An OTC market maker holds a customer limit order to buy 12,000 shares of an NMS stock at a price better than its own bid. The customer gave no display instruction. What does Rule 604 of Regulation NMS require? SEC Regulation NMS, Rule 604, 17 CFR 242.604, paragraph (b)(4). Outline: FINRA Series 57 Content Outline, Function 1.3.3, Regulation NMS.
  • Before a member lets a customer trade in the pre-market or after-hours session, what does FINRA Rule 2265 require? FINRA Rule 2265, Extended Hours Trading Risk Disclosure, paragraph (a). Outline: FINRA Series 57 Content Outline, Function 1.3.1, Meeting Obligations to Customers Regarding Orders.
  • During regular trading hours the best protected bid in an NMS stock is $20.10. A trading center executes a sale of the stock at $20.05, and no exception applies. What has occurred? SEC Regulation NMS, Rule 600, 17 CFR 242.600, definition of trade-through. Outline: FINRA Series 57 Content Outline, Function 1.3.3, Regulation NMS.
  • Under FINRA Rule 5350, which event turns a stop order to sell into a market order? FINRA Rule 5350, Stop Orders, paragraph (a). Outline: FINRA Series 57 Content Outline, Function 1.3.1, Meeting Obligations to Customers Regarding Orders.
  • What is the smallest pricing increment in which a broker-dealer may accept an order in an NMS stock priced below $1.00 per share? SEC Regulation NMS, Rule 612, 17 CFR 242.612, paragraph (b)(3). Outline: FINRA Series 57 Content Outline, Function 1.3.3, Regulation NMS.

Records, trade reporting and settlement 9

  • A member executes an over-the-counter trade in an NMS stock at 11:02:00 a.m. Eastern Time and reports it to the FINRA/Nasdaq Trade Reporting Facility at 11:02:25. How is the report treated? FINRA Rule 6380A, Transaction Reporting, paragraph (a)(1). Outline: FINRA Series 57 Content Outline, Function 2.1, Reporting Trades to the Designated Reporting Facility.
  • A member executes an over-the-counter trade in an OTC equity security during normal market hours. To which FINRA facility does it send the last sale report? FINRA Rule 6622, Transaction Reporting, paragraph (a)(1). Outline: FINRA Series 57 Content Outline, Function 2.1, Reporting Trades to the Designated Reporting Facility.
  • How often must a broker-dealer make public its report on the routing of non-directed customer orders under Rule 606(a) of Regulation NMS? SEC Regulation NMS, Rule 606, 17 CFR 242.606, paragraph (a)(1). Outline: FINRA Series 57 Content Outline, Function 2.2, Records of Orders and Transactions.
  • Shares in a registered firm commitment offering are priced at 5:15 p.m. Eastern Time. Under SEC Rule 15c6-1(c), what is the latest standard settlement date for the issuer's sale to the underwriter? SEC Rule 15c6-1, 17 CFR 240.15c6-1, paragraph (c). Outline: FINRA Series 57 Content Outline, Function 2.3, Clearance and Settlement.
  • Two member firms trade an NMS stock with each other over the counter. Under FINRA Rule 6380A(b), which of them reports the trade? FINRA Rule 6380A, Transaction Reporting, paragraph (b). Outline: FINRA Series 57 Content Outline, Function 2.1, Reporting Trades to the Designated Reporting Facility.
  • Under FINRA Rule 4590, a member's business clocks are synchronized to a source that stays within what tolerance of the NIST atomic clock? FINRA Rule 4590, Synchronization of Member Business Clocks, paragraph (b). Outline: FINRA Series 57 Content Outline, Function 2.2, Records of Orders and Transactions.
  • Under Rule 613 of Regulation NMS, by when must order event data recorded today be reported to the consolidated audit trail's central repository? SEC Regulation NMS, Rule 613, 17 CFR 242.613, paragraph (c)(3). Outline: FINRA Series 57 Content Outline, Function 2.2, Records of Orders and Transactions.
  • Which amount of trading in NMS securities in one calendar day reaches the identifying activity level for a large trader under SEC Rule 13h-1? SEC Rule 13h-1, 17 CFR 240.13h-1, paragraph (a)(7). Outline: FINRA Series 57 Content Outline, Function 2.2, Records of Orders and Transactions.
  • Which two times must a broker-dealer's memorandum of a brokerage order show under SEC Rule 17a-3(a)(6), besides the time of execution where feasible? SEC Rule 17a-3, 17 CFR 240.17a-3, paragraph (a)(6). Outline: FINRA Series 57 Content Outline, Function 2.2, Records of Orders and Transactions.

How this list was compiled: Our own questions, written to the two functions of the Securities Trader Qualification Examination (Series 57) Content Outline that FINRA publishes (https://www.finra.org/sites/default/files/Series_57_Outline.pdf, read 2026-10-09): Function 1, trading activities, 41 of 50 scored items (82%); Function 2, maintaining books and records, trade reporting and clearance and settlement, 9 (18%). The bank holds 41 and 9. Every fact was read on 2026-10-09 in the public text the question names: FINRA rules on finra.org, SEC rules on ecfr.gov (17 CFR Parts 240 and 242: Regulation M, Regulation SHO, Regulation ATS and Regulation NMS), Section 3(a)(38) of the Securities Exchange Act on govinfo.gov, the Cboe Exchange rule book (Rules 5.6, 6.21 and 8.30, which the outline lists) and the SEC's Investor.gov page on circuit breakers. Licence: Questions, choices and explanations are original work of this site.

How it works

This Series 57 practice test asks 50 questions of our own: 41 on trading activities and 9 on records, trade reporting and settlement, the split in FINRA's content outline. Unofficial: not affiliated with, endorsed by or sponsored by FINRA. Not investment advice.

Read the full guide

Three parts of trading

The outline divides trading activities into general trading practices, trading specific products and handling customer orders. This bank asks 16, 15 and 10 on them. That split is ours: FINRA publishes a count only for each function.

Rules by number

Answers cite the rule itself: Regulation SHO Rules 200, 201 and 204, Regulation M, Regulation NMS Rules 604, 611 and 612, SEC Rule 15c3-5, and FINRA Rules 5270, 5320, 6380A and 11892.

A full-length run

Exam mode asks all 50 with 105 minutes on the clock, the real exam's scored length and time limit.

  • Learn Regulation SHO as a sequence: mark the order, locate the shares, watch the 10% price test, close out a fail.

Questions and answers

Is this Series 57 free practice test like the real exam?

In length and balance, yes: 50 questions, weighted to the two functions of FINRA's content outline. The questions are our own, written from the rules that outline lists, and none comes from the real exam.

How many questions are on the Series 57 exam?

55 in one hour and 45 minutes: 50 scored questions and 5 unidentified pretest questions that do not count. Each has four answer choices, and there is no penalty for guessing.

What is the passing score for the Series 57?

FINRA gives the passing score as 70. Scores are placed on a common scale by equating, so every candidate is held to the same standard whichever set of questions they receive.

Do you need the SIE for the Series 57?

Yes. FINRA lists the Securities Industry Essentials exam as the corequisite, and a candidate must pass both to register as a Securities Trader Representative. A member firm must sponsor the candidate.

What does the Series 57 allow you to do?

FINRA's page lists the covered activities as NASDAQ equity trading, OTC equity trading and proprietary trading: executing trades in equity, preferred or convertible debt securities otherwise than on a securities exchange.

More tests

Show 7 more

Browse Civics and Law