When seeking a job opportunity at one of the over 17,000 investment agencies across the United States, potential broker dealers need to consider earning their series 82 licenses. But before they earn these licenses, they must first pass their series 82 broker dealer exams. And in turn, before they take and pass these exams, they must first gain series 82 sponsorships. But of course, earning this sponsorship is not necessarily easy. It requires, in many cases, receiving an entry-level job at a FINRA-regulated investment firm. The firm will then choose whether or not to sponsor the individual for their series 82 exam.
Earning a series 82 sponsorship is challenging, but it can be well worth conquering that challenge. With that being said, below we will explore the benefits of earning a series 82 license and what the exam may involve.
What Are the Advantages of Earning a Series 82 License?
As previously mentioned, there are a lot of reasons why you should pursue a series 82 sponsorship. Pursuing this sponsorship is not necessarily easy, but it is in the long term quite worth it. Overall, this license is fairly broad, which means that it can be applied in many different ways. Generally speaking, those who earn series 82 licensees need to understand many different types of debt, as well as equity and other types of securities. They need to be able to analyze these different aspects of investment banking and be able to understand how they are underwritten and offered to investors. Studying for and passing the series 82 exam makes certified broker dealers capable of handling these issues confidently.
Those who want to sell private securities for a commission, which can be hugely lucrative, benefit from series 82 sponsorship and eventually the license itself. Additionally, the license allows individuals to structure and sell the primary offerings of private placements. When people work with broker dealers who have series 82 licenses, they can know that they’re working with someone who is fully equipped in all aspects.
This essentially means that a series 82 sponsorship and eventual license makes a broker dealer more marketable. When people are considering working with a broker dealer, they’ll appreciate that they’re working with someone who was sponsored by a FINRA-regulated firm, suggesting a high level of trust and confidence from that firm. Additionally, FINRA licensing exams are not easy to pass. Individuals who pass them and earn their licenses prove their worth and display a great deal of drive. Therefore, it’s often easier for broker dealers with series 82 licenses to be selected by clients.
What’s the Difference Between the Series 82 Exam and SIE Exam?
There are a lot of different types of FINRA licensing exams. But the reality is that though these exams may seem similar on a surface level, they possess a lot of specific differences. In order to have private securities offering registration, an individual must pass both the series 82 exam and the SIE exam.
There are several key differences between the two exams. SIE exams are more introductory. They assess candidates in terms of their basic knowledge of the securities industry and will test their abilities to utilize fundamental concepts. There are many different topics covered by the SIE exam, from different securities industry markets to regulatory agencies, products, and prohibited practices.
However, if an individual passes the SIE exam they cannot immediately register with a FINRA member firm or take part in the securities industry. Rather, they must also pass a qualification exam, which could be a series 82 exam.
Series 82 exams are essentially mores specialized, which is why they or other qualification exams are required beyond the SIE exam. Although the series 82 exam has been shortened in recent years, it expects more advanced knowledge than the SIE exam.
There are a lot of issues to consider before you decide to take a series 82 exam. Certainly, this is not the only type of exam that you should consider taking as a potential broker dealer. But it can offer a lot of different benefits.