Series 86 & 87 – Research Analyst (RS): Complete Guide, Eligibility, Syllabus, Fees, Prep & Coaching

Become a FINRA-licensed Research Analyst by clearing Series 86 & 87 exams. This guide provides everything you need to know—including the exam structure, eligibility criteria, exam locations, fees, preparation plan, and expert coaching support from Dr. Sourav Sir’s Classes (available for both India-based and global aspirants). The content is clear, up-to-date, and designed for career-oriented professionals aiming for equity research and financial analysis roles.

What Are Series 86 & 87?

Series 86 and Series 87 are two distinct but related exams required by FINRA (Financial Industry Regulatory Authority) in the U.S. These exams are mandatory to become a registered Research Analyst at broker-dealers, investment banks, and financial institutions that follow U.S. regulatory standards.

• Series 86 focuses primarily on financial analysis, company valuation, and research methodologies.

• Series 87 emphasizes industry regulations, compliance, reporting standards, and ethics.

To gain full registration as a Research Analyst, candidates must clear the Securities Industry Essentials (SIE) exam, followed by Series 86 and Series 87. Successfully completing all three ensures you are fully licensed to analyze securities, produce research reports, and advise clients in line with U.S. regulatory guidelines.

Who Is This For?

The Series 86 & 87 exams are ideal for:

• Final-year graduates looking to enter equity research or investment analysis.

• CFA candidates who want to complement their finance credentials with a FINRA license.

• Quantitative analysts interested in applying statistical and financial modeling skills to equity research.

• Fundamental and technical analysts seeking official recognition to work in sell-side research.

• Professionals from audit, banking, or corporate finance backgrounds planning to transition into equity research or financial advisory roles.

In short, anyone aspiring to build a global finance career in research or analysis, whether in the U.S. or internationally, can benefit from these exams.

Eligibility & Prerequisites

To appear for Series 86 & 87 exams and register as a FINRA Research Analyst, candidates must meet the following requirements:

1. Sponsorship Requirement

• You must be employed by or affiliated with a FINRA-member firm or another Self-Regulatory Organization (SRO) that is authorized to sponsor representative-level exams.

• The firm acts as your official sponsor, submitting your exam enrollment and supporting documentation through the FINRA Gateway.

• Without a sponsor, you cannot schedule or appear for the exams.

  
  

2. Corequisite Exams

• Passing the Securities Industry Essentials (SIE) Exam is mandatory before attempting Series 86 & 87.

• For full Research Analyst registration, you must pass:

  1. SIE Exam

  2. Series 86 (Financial Analysis & Valuation)

  3. Series 87 (Rules, Compliance, and Ethics)

• Completing all three ensures you are fully licensed to produce and distribute research reports on equities in line with FINRA regulations.

  
  

3. Limited Exemptions

In certain cases, FINRA may grant partial exemptions for Series 86, provided specific conditions are met:

• CFA Candidates: Passing CFA Level I & II may make you eligible for a Series 86 exemption, subject to FINRA’s evaluation.

• Technical Analysts: Passing CMT (Chartered Market Technician) Levels I & II may qualify for exemption, primarily for those in purely technical analysis roles.

• Timing & Experience: Exemptions are conditional on when the exams were taken and relevant work experience.

• Firm Request Required: Exemptions are requested by your sponsoring firm through FINRA Gateway; individuals cannot request it directly.

  
  

Exam Structure & Time

The Series 86 & 87 exams are designed to evaluate both technical competency and regulatory knowledge for aspiring Research Analysts. Understanding the structure, timing, and focus areas is critical for effective preparation.

Series 86 (Part I – Analysis)

• Number of Questions: 85 scored items, plus 10 unscored pretest items embedded within the exam. These pretest items do not affect your score but are used by FINRA to test future questions.

• Duration: Approximately 4 hours 30 minutes. Adequate time management is essential due to the analytical depth of the questions.

• Focus Areas:

  1. Information & Data Collection – Evaluating company filings, financial statements, and industry data.

  2. Financial Analysis – Ratio analysis, trend evaluation, and performance metrics.

  3. Modeling & Forecasting – Building financial models to project earnings, revenue, and cash flows.

  4. Valuation Techniques – Applying DCF, comparable company, and other valuation methods to determine stock value.

  5. Integration & Interpretation – Using collected data to produce actionable insights and research recommendations.

Series 87 (Part II – Regulations & Research Reporting)

• Number of Questions: 50 scored items, plus 5 unscored pretest items embedded.

• Duration: Approximately 1 hour 45 minutes. This is shorter than Series 86 but requires high focus on regulatory precision and ethical judgment.

• Focus Areas:

  1. Research Report Preparation – Structuring, formatting, and content compliance for equity research reports.

  2. Dissemination Rules – Procedures for sharing reports with clients, internal teams, and public disclosures.

  3. Compliance & Ethics – Understanding FINRA, SEC, and other regulatory requirements. Avoiding conflicts of interest, insider trading, and unethical practices.

  4. Regulatory Interpretation – Applying rules to hypothetical scenarios, ensuring reports meet legal and professional standards.

     
     

Topic Weightage – What’s Actually Tested

Understanding topic weightage is crucial for efficient exam preparation. The Series 86 & 87 exams are structured around key functional areas that reflect the real-world responsibilities of a Research Analyst. Focusing on higher-weighted areas ensures your study plan is both targeted and effective.

Series 86 – Major Functions & Items

·        Series 86 primarily assesses your analytical and valuation skills. The exam consists of 85 scored questions, distributed across three major functional areas:

Series 87 – Major Functions & Items

Series 87 focuses on research reporting, regulatory compliance, and ethical dissemination of information. The exam consists of 50 scored questions, distributed as follows:

Career Outcomes & Roles

Passing the Series 86 & 87 exams opens the door to a wide range of career opportunities in research and investment analysis. These exams are specifically designed to ensure candidates are fully prepared to analyze securities, interpret financial statements, and comply with regulatory standards, making them highly valuable to employers across sell-side and buy-side roles.

Typical Career Pathways

1. Equity Research Analyst

   • Conducts company and industry analysis, builds financial models, and produces investment recommendations.

   • Covers sectors such as technology, healthcare, financials, energy, or consumer goods.

2. Fixed-Income Research Analyst

   • Specializes in bonds, debt securities, and credit analysis.

   • Evaluates issuer creditworthiness, interest rate risk, and portfolio implications.

3. Research Associate / Junior Analyst

   • Supports senior analysts by collecting data, maintaining financial models, and preparing draft research reports.

   • Often a stepping stone to a full Research Analyst role.

4. Sector Specialist / Thematic Analyst

   • Focuses on a specific industry or investment theme, such as renewable energy, fintech, or consumer trends.

   • Provides specialized insights for portfolio decisions or client advisories.

5. ESG (Environmental, Social, Governance) Analyst

   • Evaluates companies based on sustainability, social impact, and governance practices.

   • Growing demand in investment firms focused on responsible and impact investing.

6. Supervisory Analyst (Series 16 Required)

   • Leads a research team and oversees research output compliance.

   • Must pass Series 16 exam in addition to Series 86 & 87 to supervise and approve analyst reports.

7. Buy-Side Entry Roles

   • Positions in mutual funds, hedge funds, private equity, and asset management firms.

   • Analysts support portfolio managers by analyzing securities, generating investment ideas, and recommending trades.

8. Investment Strategy & Portfolio Support Teams

   • Work closely with portfolio managers and trading desks.

   • Responsibilities include macro/micro analysis, scenario modeling, and investment strategy formulation.

     
     

Key Takeaways

• Series 86 & 87 certification is recognized globally and positions you for high-demand research roles.

• Career growth ranges from associate-level analyst to senior or supervisory analyst roles, with opportunities in both sell-side and buy-side firms.

• Additional certifications (like CFA, CMT, or Series 16) can enhance career prospects and specialization options.

Why Choose Dr. Sourav Sir’s Classes for Series 86 & 87?

Preparing for Series 86 & 87 exams requires both technical proficiency and regulatory mastery. Dr. Sourav Sir’s Classes offer a comprehensive, career-focused approach that goes beyond rote learning to develop real-world research and analysis skills.

1. Research-First Pedagogy

• Hands-on live modeling labs for practical experience in financial statement analysis and valuation.

• Ready-to-use sector sheet templates for systematic industry and company tracking.

• Rapid valuation drills to strengthen speed, accuracy, and application under exam conditions.

2. Rule-Ready Guidance

• Comprehensive coverage of Rule 5280 and disclosure requirements for Series 87.

• Report-writing checklists aligned with FINRA standards to ensure compliance and clarity.

• Focused ethics and compliance modules to build confidence in regulatory scenarios.

3. Adaptive Mocks & Practice Strategy

• Progressive difficulty mock exams to gradually simulate real exam conditions.

• Time-boxing techniques to manage lengthy calculations and analytical sections efficiently.

• Error-log loops to track mistakes, reinforce weak areas, and prevent repetition.

4. Global Scheduling Support

• Flexible time-zone friendly batches for students in India and worldwide.

• Guidance on Prometric exam slot booking and registration logistics.

• Support for coordinating SIE, Series 86, and Series 87 schedules for a smooth exam journey.

5. Personalized Mentor Reviews

• 1-to-1 feedback on your reports, valuation narratives, and fact-checking.

• Constructive critique to improve accuracy, clarity, and analytical rigor.

• Mentorship focused on career outcomes, not just exam scores.

6. Mode of Learning

• Online Classes: Interactive live sessions, recorded lectures, and digital resources.

• Offline Classes: In-person guidance for hands-on modeling labs and peer collaboration.

• Students can choose the mode that suits their schedule and learning style.

7. Outcome-Focused Approach

• Development of job-aligned artifacts such as sector models, sample initiation note outlines, and valuation reports.

• Practical interview preparation to help students translate exam success into employment opportunities.

• Emphasis on career readiness, ensuring candidates are prepared for both sell-side and buy-side roles after certification.

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