Glossary term
Research Analyst Qualification Exam (Series 86/87)
The Research Analyst Qualification Exam refers to the Series 86 and Series 87 exams used for FINRA research analyst registration.
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What Is the Research Analyst Qualification Exam?
The Research Analyst Qualification Exam refers to the Series 86 and Series 87 exams used for FINRA research analyst registration. Candidates must pass the Securities Industry Essentials exam and both Series 86 and Series 87 to obtain the Research Analyst registration, unless an exemption applies.
The term is most relevant to sell-side research roles at broker-dealers. It is not the same thing as being a portfolio manager, financial planner, or investment adviser representative.
Key Takeaways
- The Research Analyst Qualification Exam is commonly referred to as Series 86/87.
- Series 86 focuses on analysis and valuation.
- Series 87 focuses on regulations, research reports, and research analyst conduct.
- FINRA lists the SIE as a corequisite for the Research Analyst registration.
- Research analyst registration does not guarantee that a stock recommendation is right for a specific investor.
What Series 86 and Series 87 Cover
Series 86 is generally the analytical portion of the research analyst qualification. It covers areas such as financial statement analysis, valuation, economics, industry analysis, and company analysis. Series 87 is generally the regulatory portion. It covers rules around research reports, conflicts, communications, supervision, and professional responsibilities.
That split matters because research work has both analytical and regulatory dimensions. A research analyst may build models and write opinions, but the publication of research also comes with disclosure, conflict, and supervision requirements.
Research Analyst Exam Versus Series 7
Exam or role | Main focus |
|---|---|
Series 86/87 | Research analyst registration and research-report responsibilities |
Series 7 | Broad general securities representative activities |
Sell-side research | Published research, ratings, estimates, and industry or company analysis |
Why It Matters to Investors
Investors often encounter research analysts through ratings, price targets, earnings estimates, and research reports. The Series 86/87 qualification helps define a regulatory role, but it does not remove the need to read disclosures or understand the assumptions behind the research.
Research can be useful, especially when it explains business drivers and risks. It can also be influenced by modeling choices, access, firm incentives, and market sentiment. Investors should treat research as input, not instruction.
The Bottom Line
The Research Analyst Qualification Exam refers to the Series 86 and Series 87 exams for FINRA research analyst registration. It supports a regulated research role, but investors still need to read disclosures and use independent judgment.