A broker is taking part in a secondary distribution of a stock and buys shares of it for a customer as agent. What must the customer receive under SEA Rule 15c1-6?SEA Rule 15c1-6, 17 CFR 240.15c1-6; FINRA Rule 2269. Outline: FINRA Series 86/87 Content Outline (2023), Function 4, task 4.1.
A broker-dealer under common control with an issuer sells that issuer's stock to a customer. What does SEA Rule 15c1-5 require?SEA Rule 15c1-5, 17 CFR 240.15c1-5; FINRA Rule 2262. Outline: FINRA Series 86/87 Content Outline (2023), Function 4, task 4.1.
A firm co-managed a secondary offering two days ago. Which report on the issuer may it publish inside the three-day quiet period without relying on significant news?FINRA Rule 2241(b)(2)(I). Outline: FINRA Series 86/87 Content Outline (2023), Function 4, task 4.1.
A firm first assigned a rating to a stock seven months ago. Must its new research report on the stock carry the price chart of FINRA Rule 2241(c)(3)?FINRA Rule 2241(c)(3). Outline: FINRA Series 86/87 Content Outline (2023), Function 4, task 4.1.
Show all 50 questions (46 more)
Rules for research reports, continued
A firm is advising a covered company on a merger that has not been announced. Must its research report disclose that it expects investment banking compensation from the company?FINRA Rule 2241(c)(5). Outline: FINRA Series 86/87 Content Outline (2023), Function 4, task 4.1.
A firm lets customers pull an independent third-party research report from its website. Must the firm attach its own conflict disclosures under FINRA Rule 2241(h)(4)?FINRA Rule 2241(h)(6). Outline: FINRA Series 86/87 Content Outline (2023), Function 4, task 4.1.
A firm sent sections of a draft research report to the subject company for a check of the facts. The research department now wants to change the proposed rating. What must it do first?FINRA Rule 2241, Supplementary Material .05(c). Outline: FINRA Series 86/87 Content Outline (2023), Function 4, task 4.1.
A research report with a rating is published on July 10. What is the oldest date as of which its distribution of buy, hold and sell ratings may be current under FINRA Rule 2241(c)(2)(C)?FINRA Rule 2241(c)(2)(C). Outline: FINRA Series 86/87 Content Outline (2023), Function 4, task 4.1.
An analyst does not give her firm the quarterly Regulation AC certification for her public appearances. For how long must her research reports disclose that?Regulation AC, Rule 502(b), 17 CFR 242.502. Outline: FINRA Series 86/87 Content Outline (2023), Function 4, task 4.1.
An analyst helped the firm judge a company before its public offering. Investment banking proposes a bonus for her out of the deal fee. How do the policies under FINRA Rule 2241(b)(2)(E) treat it?FINRA Rule 2241(b)(2)(E). Outline: FINRA Series 86/87 Content Outline (2023), Function 4, task 4.1.
An analyst who covers software companies is offered shares in a private software company that plans to go public. May her account take them?FINRA Rule 2241(b)(2)(J)(iii). Outline: FINRA Series 86/87 Content Outline (2023), Function 4, task 4.1.
An issuer has not yet chosen its underwriters. May a research analyst perform due diligence on the issuer's disclosure documents together with the firm's investment bankers?FINRA Rule 2241, Supplementary Material .02. Outline: FINRA Series 86/87 Content Outline (2023), Function 4, task 4.1.
An issuer's chief executive plans to give material nonpublic earnings guidance to a small group of sell-side analysts on a private call. When does Regulation FD require public disclosure?Regulation FD, Rule 100(a), 17 CFR 243.100. Outline: FINRA Series 86/87 Content Outline (2023), Function 4, task 4.1.
Bankers ask an analyst to join a call with an institutional customer about an offering the firm is underwriting. The issuer's chief financial officer will be on the line. May she take part?FINRA Rule 2241, Supplementary Material .03(a). Outline: FINRA Series 86/87 Content Outline (2023), Function 4, task 4.1.
Besides attesting that the views are her own, what must an analyst's certification in a research report address under Regulation AC?Regulation AC, Rule 501(a)(2), 17 CFR 242.501. Outline: FINRA Series 86/87 Content Outline (2023), Function 4, task 4.1.
FINRA Rule 5230 bars paying anyone to influence a publication that affects a security's market price. Which payment does the rule still allow?FINRA Rule 5230(b). Outline: FINRA Series 86/87 Content Outline (2023), Function 4, task 4.1.
How often must the compensation of an analyst primarily responsible for a research report be reviewed and approved, and by whom?FINRA Rule 2241(b)(2)(F). Outline: FINRA Series 86/87 Content Outline (2023), Function 4, task 4.1.
In an issuer's first Regulation A offering, what is the most that selling securityholders' securities may make up of the aggregate offering price?Regulation A, Rule 251(a)(3), 17 CFR 230.251. Outline: FINRA Series 86/87 Content Outline (2023), Function 4, task 4.1.
Part of an analyst's pay is tied to the specific recommendation in her report. What must her Regulation AC certification then do?Regulation AC, Rule 501(a)(2)(ii), 17 CFR 242.501. Outline: FINRA Series 86/87 Content Outline (2023), Function 4, task 4.1.
Under FINRA Rule 5121, a member taking part in a public offering has a conflict of interest when at least what share of the net offering proceeds is to go to the member and its affiliates?FINRA Rule 5121(f)(5)(C). Outline: FINRA Series 86/87 Content Outline (2023), Function 4, task 4.1.
Under Regulation S, what are "directed selling efforts"?Regulation S, Rule 902(c), 17 CFR 230.902. Outline: FINRA Series 86/87 Content Outline (2023), Function 4, task 4.1.
What relief does FINRA Rule 2241(c)(7) give a research report that covers eight subject companies?FINRA Rule 2241(c)(7). Outline: FINRA Series 86/87 Content Outline (2023), Function 4, task 4.1.
Which fact must a research report disclose under FINRA Rule 2241(c)(4)?FINRA Rule 2241(c)(4)(G). Outline: FINRA Series 86/87 Content Outline (2023), Function 4, task 4.1.
Which firm qualifies for the limited investment banking exemption of FINRA Rule 2241(i)?FINRA Rule 2241(i). Outline: FINRA Series 86/87 Content Outline (2023), Function 4, task 4.1.
Which statement about its research may a firm put in pitch materials for an investment banking client, as FINRA reads Rule 2241(b)(2)(L)?FINRA Rule 2241, Supplementary Material .01. Outline: FINRA Series 86/87 Content Outline (2023), Function 4, task 4.1.
Who may set the budget of a firm's research department under the policies FINRA Rule 2241(b)(2)(D) requires?FINRA Rule 2241(b)(2)(D). Outline: FINRA Series 86/87 Content Outline (2023), Function 4, task 4.1.
Kinds and contents of reports 10
A company's earnings release, which an analyst is reviewing, reports "adjusted earnings" that leave out restructuring charges. What must accompany that figure under Regulation G?Regulation G, Rule 100(a), 17 CFR 244.100. Outline: FINRA Series 86/87 Content Outline (2023), Function 4, task 4.2.
A firm decides to stop covering a company. What must go out with its notice to customers under FINRA Rule 2241(f)?FINRA Rule 2241(f). Outline: FINRA Series 86/87 Content Outline (2023), Function 4, task 4.2.
A firm publishes a written analysis of one company's bonds, with enough information to base an investment decision on. Is it a research report under Regulation AC?Regulation AC, Rule 500, 17 CFR 242.500. Outline: FINRA Series 86/87 Content Outline (2023), Function 4, task 4.2.
A firm sends clients a short notice that it has raised its price target on a stock. When is the notice outside FINRA Rule 2241's definition of a research report?FINRA Rule 2241(a)(11)(A)(vi). Outline: FINRA Series 86/87 Content Outline (2023), Function 4, task 4.2.
A firm's rating system defines "hold" to mean that investors should sell the stock. Which requirement of FINRA Rule 2241(c)(2) does that fail?FINRA Rule 2241(c)(2). Outline: FINRA Series 86/87 Content Outline (2023), Function 4, task 4.2.
A strategist's note tells clients to hold more energy stocks and fewer utilities. It names no company. Is it a research report under FINRA Rule 2241?FINRA Rule 2241(a)(11)(A)(v). Outline: FINRA Series 86/87 Content Outline (2023), Function 4, task 4.2.
An applicant who passed Levels I and II of the CMT exam may be waived from the Series 86 if she prepares only "technical research reports." What is such a report based on?FINRA Rule 1220(b)(6). Outline: FINRA Series 86/87 Content Outline (2023), Function 4, task 4.2.
The only analyst covering a company leaves, and the firm cannot produce a final report. What must its notice ending coverage tell customers?FINRA Rule 2241(f). Outline: FINRA Series 86/87 Content Outline (2023), Function 4, task 4.2.
What must a firm's policies ensure about the purported facts in its research reports under FINRA Rule 2241(c)(1)(A)?FINRA Rule 2241(c)(1)(A). Outline: FINRA Series 86/87 Content Outline (2023), Function 4, task 4.2.
Which figure in a company's release is not a non-GAAP financial measure under Regulation G?Regulation G, Rule 101(a), 17 CFR 244.101. Outline: FINRA Series 86/87 Content Outline (2023), Function 4, task 4.2.
Presenting research 6
A firm's trading desk learns that an upgrade of a stock will be published tomorrow. Instead of buying the stock for inventory, the desk buys call options on it. Is FINRA Rule 5280 broken?FINRA Rule 5280(a). Outline: FINRA Series 86/87 Content Outline (2023), Function 5, task 5.1.
An analyst briefs the firm's sales force about an offering the firm is underwriting. What standard does FINRA apply to what she says?FINRA Rule 2241, Supplementary Material .03(b). Outline: FINRA Series 86/87 Content Outline (2023), Function 5, task 5.1.
An analyst gives her opinion of a stock at a seminar. No reporter attends. How large an audience makes the seminar a public appearance under FINRA Rule 2241?FINRA Rule 2241(a)(7). Outline: FINRA Series 86/87 Content Outline (2023), Function 5, task 5.1.
An applicant passed Levels I and II of the CFA examination last year. What may FINRA waive for her Research Analyst registration?FINRA Rule 1220(b)(6). Outline: FINRA Series 86/87 Content Outline (2023), Function 5, task 5.1.
An associate's primary job is investment research. Her name appears on the firm's equity research reports, though a senior analyst writes most of the substance. Must she register as a Research Analyst?FINRA Rule 1220(b)(6). Outline: FINRA Series 86/87 Content Outline (2023), Function 5, task 5.1.
For how long must a firm keep the records that show its analysts made the required disclosures in public appearances?FINRA Rule 2241(d)(3). Outline: FINRA Series 86/87 Content Outline (2023), Function 5, task 5.1.
Dissemination and offerings 8
A broker-dealer has no part in an issuer's registered offering. Under Securities Act Rule 137, which condition lets it publish research on the issuer without being treated as a participant in the distribution?Securities Act Rule 137, 17 CFR 230.137. Outline: FINRA Series 86/87 Content Outline (2023), Function 5, task 5.2.
A company that filed no Exchange Act reports before its offering lists its shares on a national securities exchange at the IPO. For how long after the offering date must dealers deliver a prospectus under Securities Act Rule 174(d)?Securities Act Rule 174(d), 17 CFR 230.174. Outline: FINRA Series 86/87 Content Outline (2023), Function 5, task 5.2.
A firm sells "trading research" to short-term customers and "investor research" to long-term ones. What may it not do under FINRA Rule 2241(g)?FINRA Rule 2241(g) and Supplementary Material .07. Outline: FINRA Series 86/87 Content Outline (2023), Function 5, task 5.2.
A member of an underwriting syndicate publishes its regular monthly industry report, which includes the issuer. What does Securities Act Rule 139(a)(2) require of the issuer's place in the report?Securities Act Rule 139(a)(2), 17 CFR 230.139. Outline: FINRA Series 86/87 Content Outline (2023), Function 5, task 5.2.
An issuer pays a newsletter writer to describe its stock. The newsletter does not offer the stock for sale. What makes circulating the piece unlawful under Section 17(b) of the Securities Act?Securities Act of 1933, Section 17(b), 15 U.S.C. 77q(b). Outline: FINRA Series 86/87 Content Outline (2023), Function 5, task 5.2.
Section 9(a)(5) of the Exchange Act makes it unlawful, for a consideration from a seller or buyer, to induce the purchase of a security by spreading what information?Securities Exchange Act of 1934, Section 9(a)(5), 15 U.S.C. 78i(a)(5). Outline: FINRA Series 86/87 Content Outline (2023), Function 5, task 5.2.
Under Securities Act Rule 135, which item may an issuer's notice of a proposed registered offering not include?Securities Act Rule 135(a)(2), 17 CFR 230.135. Outline: FINRA Series 86/87 Content Outline (2023), Function 5, task 5.2.
Which securities are "actively-traded" and so excepted from Rule 101 of Regulation M?Regulation M, Rule 101(c)(1), 17 CFR 242.101. Outline: FINRA Series 86/87 Content Outline (2023), Function 5, task 5.2.
How this list was compiled: Our own questions, written to FINRA's Research Analyst Qualification Examinations (Series 86 and 87) Content Outline, marked 2023 (https://www.finra.org/sites/default/files/2023-03/Series_86_87_Content_Outline_Revised.pdf, read 2026-10-14): Part 2 (Series 87) is Function 4, preparation of research reports, 36 of 50 questions, and Function 5, dissemination and marketing of information, 14. The bank holds 36 and 14. The outline gives no count by task; the split inside each function is this site's: task 4.1 regulatory requirements 26, task 4.2 kinds and contents of reports 10, task 5.1 presenting research 6, task 5.2 dissemination 8. Every fact was read on 2026-10-14 in the public text the question names: on finra.org, FINRA Rules 1220, 2241, 2262, 2269, 5121, 5230 and 5280; on ecfr.gov, Regulation AC Rules 500 to 502, Regulation FD Rule 100, Regulation G Rules 100 and 101, Regulation A Rule 251, Regulation S Rule 902, Regulation M Rule 101, SEA Rules 15c1-5 and 15c1-6, and Securities Act Rules 135, 137, 139 and 174; on law.cornell.edu, Securities Act Section 17 and Exchange Act Section 9. Licence: Questions, choices and explanations are original work of this site.
How it works
This Series 87 practice test asks 50 questions of our own on the rules for writing and distributing equity research, each naming its rule. Unofficial: not affiliated with, endorsed by or sponsored by FINRA. Not investment advice.
Read the full guide
The outline's own counts
FINRA's outline gives the Series 87 50 scored questions: 36 on preparing research reports and 14 on dissemination and marketing of information. This bank holds those counts. The split inside each function is ours: report rules 26, report contents 10, presenting research 6, dissemination 8.
Rules, not valuation
Analysis, modeling and valuation belong to the Series 86 and are not asked. Each answer cites its text, among them FINRA Rules 2241 and 5280, Regulations AC, FD, G and M, and Securities Act Rules 137 and 139.
A timed run
A timed run of this bank is the real exam's scored length on its clock: 50 questions in 1 hour and 45 minutes.
Two 15s in Rule 2241 get mixed up: 15 or more persons make a public appearance; 15 calendar days decide which quarter's figures are current.
Regulation FD is the issuer's duty; Regulation AC is the certification in the analyst's report. Decide which one a question is about first.
Questions and answers
What is the Series 87 exam?
Part 2 of FINRA's Research Analyst Qualification Examination, the regulations part. It tests the rules for preparing research reports and for getting research to clients, the sales force and the media. Part 1, the Series 86, covers analysis and valuation.
How many questions are on the Series 87?
55 multiple-choice questions in 1 hour and 45 minutes. 50 are scored and 5 are unidentified pretest questions that do not count. There is no penalty for guessing.
What is the passing score for the Series 87?
74, as FINRA lists it. FINRA's outline says scores are placed on a common scale by equating, to allow for small differences in difficulty between sets of questions.
Do I need the Series 86 as well as the Series 87?
Yes, with the SIE, to register as a Research Analyst. The Series 86 can be waived after Levels I and II of the CFA exam, or of the CMT exam for an analyst writing only technical research reports. The Series 87 is still required.