Research Analyst Exam – Analysis Module (Series 86) Practice Test

The Series 86 (Analysis Module) tests your technical, analytical skills: financial statement analysis, valuation, economics, and industry analysis. The Series 87 (Regulation Module) tests your knowledge of the rules and regulations governing the conduct of a research analyst, including conflicts of interest, communications, and disclosure requirements. They are two parts of the complete Research Analyst qualification.

A strong academic foundation is a significant advantage, but it is often not sufficient alone. The exam applies concepts in specific, industry-standard ways and tests on FINRA's precise rules and definitions related to the research process. You must bridge the gap between general academic knowledge and the specific applications and regulatory context tested. A structured review course and practice questions are highly recommended to make this translation.

The math is foundational finance and accounting math: calculating financial ratios (e.g., margins, returns, leverage), working with time value of money for DCF models, computing valuation multiples (P/E, EV/EBITDA), and performing basic statistical analysis (mean, standard deviation, regression). A financial calculator (like the TI BA II Plus) is essential. The challenge is less about complex calculus and more about accurate, logical application within an analytical framework.

Active practice is non-negotiable. Do not just read about how to calculate Enterprise Value or a discount rate-work through multiple examples from start to finish. Use your chosen prep provider's question bank extensively, focusing on the areas of Financial Statement Analysis and Valuation. Identify your weak spots (e.g., deferred taxes, diluted EPS, WACC calculation) and drill on those specific problem types until the process is automatic.

Yes. You must first pass the Securities Industry Essentials (SIE) exam. Additionally, most candidates are required to pass the Series 7 (General Securities Representative) exam, or have it waived by their firm, before being eligible to sit for the Series 86/87. You should confirm your specific registration path with your firm's compliance department.