What is required before a candidate can sit for the Series 86 exam?

To sit for the Series 86 exam, candidates must pass the Series 7 exam and have a sponsoring firm. The Series 7 exam, also known as the General Securities Representative Exam, provides foundational knowledge and skills necessary for making recommendations and executing trades in securities. Successfully completing the Series 7 demonstrates a level of competence that is essential for a research analyst role.

Additionally, having a sponsor is a regulatory requirement that ensures that candidates have the support of a FINRA-member firm, which is critical for the compliance and oversight aspects of the financial industry. This sponsorship allows candidates to gain the practical experience and guidance needed as they prepare for the responsibilities that come with being a research analyst.

Other options, such as completing an internship, enrolling in a graduate finance program, or having two years of experience in investment banking, while they might enhance a candidate's qualifications, are not prerequisites to be eligible for taking the Series 86 exam. Thus, fulfilling the requirement of passing the Series 7 exam and obtaining sponsorship from a FINRA-member firm is essential for advancing in the field of research analysis.